SECTIONS CLOSE
  • Home
  • Directory
    • Artists
    • Black Youth & Family Services
    • Books
    • Business
    • Films
    • Politicians
  • News
  • Opinion
  • Entertainment
    • Books
    • Film & TV
    • Music
    • Stage
  • The Experts
    • Fashion
    • Food
    • Health
    • Legal
    • Marketing
    • Money
    • Motivation
    • Parenting
    • Real Estate
    • Sex & Relationships
    • Technology
    • Travel
  • Profiles
    • Artists
    • Business
    • NFP/Charities
    • Personalities
    • Food & Drink
    • Sponsored Profiles
  • The Father Project
    • Fathers Responses
  • Archive
  • Newsletter Archive
    • Subscribe to our Newsletter
  • PCA
    • 2024 ByBlacks.com PCA Winners List
    • 2023 ByBlacks.com PCA Winners List
    • 2022 ByBlacks.com PCA Winners List
    • 2021 ByBlacks.com PCA Winners List
    • 2020 ByBlacks.com PCA Winners List
    • 2019 ByBlacks.com PCA Winners List
    • 2018 ByBlacks.com PCA Winners List
  • Restaurant Week
    • Prix Fixe Menus
      • Prix Fixe Menus - AB
      • Prix Fixe Menus - BC
      • Prix Fixe Menus - NS
      • Prix Fixe Menus - NB
      • Prix Fixe Menus - ON
      • Prix Fixe Menus - PEI
  • Jobs
  • About Us
  • Advertise
  • FAQs
  • Editorial
  • General
  • Press
  • Privacy
  • Sales
  • User Login

ByBlacks.com | #1 online magazine for Black Canadians

Money

Financial Fitness – It’s Easier Than You Think

Financial Fitness – It’s Easier Than You Think
By
Published on Monday, January 12, 2015 - 00:00
It’s a new year, a time of renewal, a time when many of us make resolutions, and set fresh goals.

Whether your new year’s resolution involves losing weight, paying down or paying off debt, quitting smoking, or saving for retirement, resolutions not backed by solid plans of action are merely pipe dreams.

I encourage everyone to make a commitment in 2015 to Financial Fitness, and while financial fitness will mean different things to different people, we can all agree that savings or the absence thereof will impact our financial fitness both today and in the future.

The first step toward financial fitness is to take a look at your current financial situation, decide where you’d like to be, and then commit to a plan of action to get you there (this plan of action starts with a budget, and a recognition that creating a budget and committing to a budget are two different things).

Recently I had dinner with two of my good friends who shared a little bit regarding how they arranged their financial affairs, and it is amazing what you can learn over a meal. First off they treat savings as a bill they must pay every month and as such savings is a top priority on their household budget, in fact they pay themselves every month even before paying their mortgage. I found it interesting that not only do they contribute to RRSPs every year but the money they get back when they do their taxes, instead of using it to go shopping in Buffalo, they use it to max out the contribution to their Tax Free Savings Account (TFSA). If you are getting back money from the Government, why not use some of that money to earn money that can never be taxed.

Two of the greatest features of your pay cheque are reliability and predictability -you know how much money you are getting and when you will get it. This is something that anyone who has a defined pension plan through work will tell you that they really look forward to when they retire. The great thing about a pension is that it is guaranteed for life. My friends have no defined pension through work, and their bank cannot guarantee that their RRSPs and other investments will grow, let alone guarantee them income for life, so they transformed their retirement savings into a guaranteed pension for life by holding their RRSPs in a Guaranteed Minimum Withdrawal Benefit (GMWB) product. A GWMB is a unique product offered by a few insurance companies that guarantees you income for life, and takes a lot of the uncertainty out retirement planning because you know how much money you will receive every year during retirement.

Achieving financial fitness is easier than you think, and if you are self-employed, or employed but have no pension plan at work, don’t want to worry about the ups and downs of the markets, and have accepted the reality that CPP and OAS will not provide enough income to sustain your lifestyle during retirement, then it is time for us to sit down and implement a plan that will work for you.

Last modified on Friday, August 21, 2020 - 15:38

Featured Directory Listings

  • Cuisine by Noel - Caterer & Baker
    Cuisine by Noel -...www.cuisinebynoel.co...Name: Cuisine by Noel - Caterer & Baker
  • Hudson Law Office Professional Corporation
    Hudson Law Office...Name: Hudson Law Office Professional Corporation
  • As Told By Canadian Immigrants
    As Told By Canadian...https:/...Name: As Told By Canadian Immigrants
  • Oya Black Arts Coalition (OBAC)
    Oya Black Arts...https:/...Name: Oya Black Arts Coalition (OBAC)
  • Becoming Institute Inc.
    Becoming Institute...https:/...Name: Becoming Institute Inc.
  • SEE ALL LISTINGS
  • FINANCIAL
  • FITNESS
  • RESOLUTIONS
  • RRSP
By

Latest from

  • How To Get Guaranteed Income For Life
  • Spring Into These Tax Advantages
  • Wealth Or The Absence Thereof Is A Choice
  • The Top Five Financial Products Every Business Owner Should Own
  • Why An RESP Alone Won't Cut It

MORE IN THIS CATEGORY

Didn't See That Coming
Didn't See That Coming 10 December 2014
Does the 40% include you? 02 February 2015
Does the 40% include you?

RELATED STORIES

Why NOW is the Best Time to Talk To Your Teen About Money

Why NOW is the Best Time to Talk To Your Teen About Money

25 June 2021
Tips To Get Through The Holiday Temptation

Tips To Get Through The Holiday Temptation

19 December 2020
5 Ways To Stay Motivated On Your Wellness Journey

5 Ways To Stay Motivated On Your Wellness Journey

08 February 2020
ByBlacks.com | #1 online magazine for Black Canadians
Magazines Canada
  • About Us
  • Advertise
  • FAQs
  • Editorial
  • General
  • Press
  • Privacy
  • Sales
  • User Login
Copyright © 2013 - 2025 ByBlacks.com, Inc. All rights reserved.
developed by Nuevvo