Assets: Get some

Assets: Get some

When?

The simple truth is that everyone of credit-building age (18) should focus on acquiring, building, and safeguarding personal assets to keep a healthy financial portfolio. Young adults benefit from gaining assets as it leads to a deeper understanding of personal finance and cash flow as a whole.

Folks further along in life than young adulthood are never too late to reap the financial rewards of building their own personal assets.

#QOTD

One of our favourite quotes addresses the question of ‘when’ rather nicely –

The best time to plan a tree was twenty years ago. The second best time is now

Chinese Proverb

Or, as we say today, “Better late than never.” It is literally never too late to address any financial planning shortcomings, including the obtaining and growing of personal assets.

The ideal scenario – young adults being aware of their financial situation – isn’t often the real scenario. Which leads to later-stage adults also being incapable of managing their personal assets and finances!

Our education system lacks an emphasis on what holistic financial well-being looks like, no doubt contributing to the current average Canadian household debt (excluding mortgages) of $22,125.

Suffice to say, it behooves everyone to attain and protect financial assets asap.

The how

First, you need to get right with your finances. Check out our previous posts on understanding personal credit, income, and creating an inventory of assets. We’ll wait.

While the very best way to assess personal financial standing and ensure the best planning is to contact us, these tips are great building blocks in creating your own financial portfolio.

• Pay yourself first: Tired but true, paying yourself first means contributing to savings or retirement plans before scoring tickets to Led Zeppelin, or One Direction! (#millennialmarketing #arewedoingthisright
• Pay off bad debt: We’ve said it before and we’ll say it again. That high-interest debt feels like bad news because it is! Free up those payments for future investment.
• Buy a house: Novel, coming from a mortgage brokerage, right? Obviously, we have a vested interest, but history doesn’t lie – traditionally, homes have been a sound investment as they appreciate (as they do today).
• Get that emergency paper: No, seriously, get some emergency scratch together – enough to last six months of all household bills. Like insurance, the peace of mind it provides is worth the commitment.
• Find investment opportunities: Not your friend’s Avon company though, ok? We’re talking about finding an advisor to help locate opportunities for you. Fancy stuff, like stocks, bonds, and mutual funds are all generally good things to look into.
• Invest in you: Cheesy, we know. That said, improving your education, or saving for your child’s education is a wonderful way to invest in your future earning potential.
• Take advantage of employer retirement contributions: If your employer matches your retirement contributions you sure as heck ought to be maxing out your personal contribution.
• Keep it up: These are the basics of establishing a holistically health financial portfolio but don’t get cocky, kid. There’s no shame in calling in counsel when needed – and you’ll reap the rewards in the long run.

This has been a Financial Literacy Month blog post from Clinton Wilkins Mortgage Team.

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