I am so excited to finally share these 10 tips for financial success from an expert! I’ve always wanted to share financial and budgeting advice on the blog. Especially with everything that’s happened this past year, it’s completely changed the way I think about our money and finances.
That being said a few weeks ago I met with Daniel who is a Mortgage Agent and currently helping us figure out our finances. He’s also been great at clearing some of the confusion I had surrounding my personal finances. But, you’re probably wondering what exactly a Mortgage Agent does? and how someone like Daniel can help you.
A Mortgage Agent can help you figure out your personal finances and give you credit advice. They can provide recommendations for mortgages based on your income and financial needs. Negotiate with a lender on your behalf so that you can save money. Also, a Mortgage Agent can work with your real estate agent and lawyer to ensure you get the best deal.
Basically a Mortgage Agent is someone you need in your corner when it comes to handling your finances. This is why I wanted to ask Daniel to give you (my readers) 10 tips to help with your own financial success.
10 tips for financial success from an expert
Term Life Insurance
Having life insurance is the key to any financial gameplan. Should you pass away prematurely, your family can continue to live comfortably with the life insurance payout. Term insurance is where you get the most value for your money. You get the most amount of coverage at a low cost and there are no bells and whistles.
Pay Yourself First
You should set up a Pre-authorized installment that will go directly into an investment portfolio, whether its into a TFSA or RRSP. At the end of the day, it’s not how much you make but how much you save.
Stick to a budget
Living beyond your means is the number 1 financial mistake people make. sticking to a budget will help you reach your financial goals.
Invest in Mutual Funds
Many people come to me and say I want a safe investment, and they refer to a GIC. although GIC’s are “safe” the only thing you’re guaranteed is to outlive your money. GIC’s are typically less than 2% interest and going based on the Rule of 72 it will take your money roughly 36 years to double. Mutual funds when advised properly are the greatest investment you can make with your money. The average mutual fund has averaged 8% since 1950.
Pay off credit card debt
Debt is at an all-time high. Canadian are at 178% debt to income ratio meaning that for every dollar we make, we spend $1.78. This ties into sticking to a budget and only buying things once you have saved up for them and not having to use a visa.
Update Your Will
If you have dependents, no matter how little or how much you have you need a will.
Establish an emergency fund
An emergency fund should consist of 3-6 months of income. During these times it’s more than necessary to have an emergency fund. Having an emergency fund would be able to help your family live the same lifestyle and not struggle and give you a buffer to find another job.8. Limit the amount you eat outside the home – most of the unnecessary spending comes from dining out or ordering food.
Most people just spend, spend, spend, and don’t track where all the money is going and thus leading to running out of money before you get paid again.
Earn more income
At the end of the day if you have financial goals and your current income isn’t cutting it, you will need to make more money. Whether it’s a part-time job, or starting a part-time business or finding a better job, do what you need to do to achieve financial success.
Good right!? If only I would have known about these 10 tips years ago. I also wanted to let you know if you have any questions, or are in need of speaking to a mortgage broker I highly recommend Daniel. You can email him here, DM on Instagram or find more information here.