Scotia Investments

Financial Learning Centre

Scotia Investments Financial Learning Centre

Money Management Guide - Safe Ways To Reach Your Goals

As we approach the end of a year, we can start contemplating on the things we would like to accomplish in the upcoming New Year. An aspect to consider is the route you will be taking to ensure your financial goals are reached, and the safe ways you can employ to get there. It is important to note that there are risky ways you can employ that may push you further away from achieving these goals; as such, various avenues have to be assessed and the one you deem most comfortable for you, should be taken.

By saving

Many individuals find it extremely difficult to get into the savings habit, but constant saving will put you on the right path to achieve your financial goals, and there is no better time than now to start doing so. So before spending those Christmas bonuses and cash received as a gift, opt to put it into an account towards your financial goal.

Planning for your retirement

The importance of planning for your retirement cannot be stressed enough, as you need to make allowance for your welfare when you are no longer collecting a monthly salary. It is never too early to start planning and saving towards your retirement. The younger you are, the more you can afford to be less risk averse and opt to do more risky investing to accumulate enough money. You should always aim to balance your investment strategy with your risk tolerance.

When you do retire, if possible, find a part time job (not too stressful) to boost your cash flow. You can find something you enjoy doing, so it will not seem as if you still need to be a workaholic to financially support yourself.

Taking your retirement too early may also be to your disadvantage, as such, do so when it's the opportune/required time, as there is no harm in collecting that monthly salary as long as possible to increase your retirement savings...the more the better.

Be practical when buying Health Insurance

You never know what unforeseen medical emergency may befall you or your family members, therefore you should select the health insurance plan for yourself and your dependents carefully…a long-term health insurance coverage may be the better option.

An inheritance…not always a guarantee

Some may be fortunate to obtain an inheritance that can ensure their financial stability and inevitably the achievement of their financial goals. However until such an inheritance is received, it is not wise to plan ahead with it in the equation; you'll be thrown horribly off-board if it turns out that your expectations of an inheritance isn't met.

Don't give money away

You would be surprised at how much we spend unnecessarily, or even the way lending money to family and friends can accumulate to a large sum. Spend and lend money with your financial goals in mind, this habit can really affect how soon your goals are achieved.