Listen to this Podcast
A simple approach to money management when you’re starting out
When you’ve finished school and are trying to get your career off the ground, there’s a lot to worry about. Don’t let finances be one of them. Follow these basic rules of money management.
1. Pay down debt
Many people graduate with debt, making it that much more challenging to get established. Always make your scheduled student loan payments, and if you are struggling, speak to your lender rather than falling behind or defaulting.
If you have other debts, focus on paying these down, starting with those that have the highest interest rates, such as credit card balances.
2. Balance the budget
To avoid falling into (or back into) debt, make sure your income is always higher than your expenses. How? Keep discretionary spending (non-essentials like entertainment, restaurant meals and fast foods, unused gym memberships) in check and cut back if you have to. If that’s not enough to balance the books, find other ways to trim (such as sharing accommodation or finding a cheaper phone plan), or boost your income by taking on extra work.
The Ontario Securities Commission has prepared an excellent budget worksheet that can help you track your income and expenses.
3. Save, save, save
If you’re not putting any money aside, start now — even if it’s just a few dollars a week. If you’re already saving, try to boost the amount. An Automatic Savings Plan (ASP), which transfers money from your chequing account into a savings account, makes it easier. A high-interest savings account is a good way to make the most of your shorter-term savings
For funds that you won’t need to tap into very often, open a Tax-Free Savings Account (TFSA), so the interest or earnings can grow tax-free.
4. Invest for tomorrow
Many young people avoid investing. But it’s about the only way to stay on top of the eroding effects of inflation.
There’s an overwhelming number of investment options out there. A financial advisor will find investments based on your goals, time horizon and risk tolerance. It can be challenging to find an advisor when you are younger and your assets are still low, but we work with a number of younger clients and are happy to work with you.
5. Take advantage of “free” money
If your company has a pension plan that matches your contribution, sign on as soon as you’re eligible — even if you feel you can’t afford the contributions, or retirement seems a long way off. If you opt out, you’re passing up “free” money from your employer’s contribution. This could add up to a significant sum, once you factor in compounded returns over the decades of your career.
More Financial News & Events
Managing growth for business owners
May
Are you a lawyer with questions on how to grow your investments?
May
Cultivating a growth mindset around money
May
Why financial growth can be deceptive
May
Home and Financial Document Organization
Apr
Business owners, it’s time to start spring cleaning.
Apr
Spring Cleaning Your Finances
Apr
Unique financial challenges female lawyers face
Mar
Taking Action: A Woman’s Perspective on Deciding To Tackle Her Finances
Mar
Is there a gap in your income protection?
Mar
Knowing the difference between Tax Filer and Tax Advisor
Mar
Conquering Women’s Fears Around Finances
Mar
Trends in Family Law
Feb
PART 2: Financial Conversations Couples Need To Have at Different Life Stages
Feb
Financial Conversations Couples Need To Have at Different Life Stages
Feb
Disruption and Reinvention: Starting a Second Career in your Forties
Jan
How to create a strong financial fortress during market downturns
Jan
Creating a Financial Vision Board for 2023
Jan
5 Tips to set yourself up For Financial Success in 2023
Jan
Year-end Donation strategies
Dec
Year-end tax planning
Dec
Getting clients organized for 2023
Combating Quiet Spending
Nov
Our Client’s Journey to Building Financial Confidence
Nov
How Working with an Advisor can Improve your Confidence
Nov
A letter from the CEO’s desk
Nov
Getting Psychologically Ready for Retirement
Oct
Retirement Planning for Business Owners
Oct
Top Issues Clients Face with Retirement
Oct
What Risk Means for your Investment Portfolio
Oct
Finding Investment Opportunities in the Market
Sep
Behind The Scenes On Helping Our Clients Choose Investments
Sep
How to Deal with Debts Amidst Rising Costs
Sep
Buying and Selling Homes as Prices Fall
Aug
Parenting and Back to School
Aug
Dealing with the high cost of living
Aug
Ask Team Jackie Porter Series – Financial Planning with Jin Lee
Aug
Budgeting for Home Renovations
Jul
Mental Health and Finances
Jul
Planning a Vacation Post Covid
Jul
Dealing with spending pressures
Jun
Behind the Scenes – Working with Lawyers on a Financial Plan
Jun
Positive Experience with Financial Planning – A conversation with Erin Leslie
May
What Are the Process of Putting Together a Financial Plan? – A conversation between Jackie and Jin
May
Creating Financial Transformations
May
Building A Brand Effectively in Second Quarter – A Conversation with Cassie Drake
May
How to boost your business mojo – A conversation with Valeri Hall Little
Apr
How to make a financial fresh start second quarter? 5 principles from Jackie Porter
Apr
The #1 Challenge that Leaders Face, from the Founder of Green Apple Consulting – Lisa Mitchell
Apr
What is entrepreneur resilience? A conversation with Karen Dean
Mar