7 of the smartest things you can do for your finances

Smart money moves may be easier than you think. Here are 7 things you can do that can help you move toward a better financial future.

1. Make a budget

A budget is the starting point of any good financial roadmap (and if you’re not sure what that is, we’ve got you covered). Make sure it’s realistic. Don’t forget emergency expenses like car repairs and yearly expenses like property taxes or winter clothes for the family. Then stick to your budget as best you can.

2. Pay yourself first

This is one of the most important rules of managing your money. What does that mean? It means saving by putting aside an affordable amount every month before you pay bills or make any other purchases. For example, you could set up automatic withdrawals from your pay that go into a registered retirement savings plan (RRSP). That way you never see the money and aren’t tempted to spend it.

3. Build an emergency fund

The pandemic taught many Canadians about the importance of saving for a rainy day. How much do you need to save in an emergency fund? Aim for 3-6 months of your net income. What matters most is that you start saving today. Even a small amount every paycheque can go a long way. Putting that money into a tax-free savings account (TFSA) might make withdrawals less tempting.

4. Maximize your employee benefits

Take advantage of retirement savings opportunities and health benefit plans. Call the company that administers your plans and ask how you can get the most out of them. For example, a lot of employers will match your retirement plan contributions up to a certain level. That’s a great benefit that you don’t want to leave on the table.

5. Review your insurance coverage

Your needs and those of your family will change over time. Talk to a Prospr advisor about the types and amount of protection you have. Don’t forget to update your beneficiaries if your situation changes, like after divorce or if you’re growing your family.

6. Write down your financial priorities

Start with your short-term goals. Think about what you’d like to accomplish in the next few years. Choose goals that are attainable, but optimistic.

Next, focus on your long-term priorities. Here’s where you can dream of life goals, and retirement. An advisor can help you update your financial roadmap to get you there.

7. Meet with your advisor

Or find an advisor if you don’t have one. A Prospr advisor can help you review your finances, identify your needs and build a personalized financial roadmap to help make your dreams a reality.

This article is meant to provide general information only. Sun Life Assurance Company of Canada does not provide legal, accounting, taxation, or other professional advice. Please seek advice from a qualified professional, including a thorough examination of your specific legal, accounting and tax situation.