Major aspects to work on to acquire strong financial management skillsPosted by Murphy Ismail on June 7th, 2021 In Canada, the Millennial demographic - loosely defined as 15 to 35 years old - includes approximately 9.5 million people and represents about 27 percent of the total population. 1 Millennials have recently become the largest percentage of the workforce 2and many in this age group will enjoy a significant legacy over the years or decades to come. With these considerations in mind and given that these years are typically a time of many personal and professional changes as well as greater financial independence, it is important to recognize the value of practical financial management skills and management. financial literacy. This tip sheet provides useful information and strategies grouped into six major areas to help Millennials gain the confidence and knowledge to plan and manage their financial affairs. Identify short and long term financial goals For many people, the process of setting goals and then planning for their financial goals can be seen as a daunting task when viewed in its entirety. In addition, for many millennials, a change of mind to consider long-term financial goals may prove to be a great challenge, given the urgency of more immediate needs and goals within this group. demographic, including post-secondary education, marriage, homeownership and family formation. However, what we must recognize is that defining your short and long term goals is an essential starting point for having concrete plans to achieve your goals. There is also abundant research that indicates that those who put their goals in writing have a better chance of achieving them. 3Some of the factors that contribute to this improved completion rate include increased accountability, a greater ability to track one's progress, developing milestones along the way, and motivation to stay on course. So, whether your goals are more immediate or more distant in the future, defining and writing them down is a step in the right direction in terms of putting in place the appropriate strategies to achieve your goals. Create a structured savings plan Regardless of the type or range of goals you've set and strive for, it's essential to understand the value and importance of developing a savings plan. A most effective approach to consider for saving is to determine a specific amount to set aside on a regular basis. This can be done by subscribing to an authorized direct debit program whereby funds are automatically withdrawn from their paycheque and deposited in an investment vehicle or savings account. A good place to start would generally be to direct 3 to 10 percent of your paycheck to a savings program. As your paycheck grows, The general idea behind this type of approach is that “if you don't see it, you don't spend it”. Also, the element of predetermination and automatism eliminates any risk of a change of course and the temptation to make an impulsive decision contrary to your overall goals. This type of savings structure guarantees positive progress towards its objectives and said progress is easily observed and monitored. Develop and adhere to a spending plan Following the preparation and use of a budget (which should be part of your overall plan), you will need to equip yourself with a realistic spending plan. Canada us financial planning Nowadays, there is a whole host of programs and applications online to help you build your budget. However, while all of these tools can be useful and convenient in many ways, the fact remains that they won't be able to make spending decisions for you. Indeed, they function more like a monitoring method, hence the importance of having a determined expenditure plan, a self-checking method before making purchases or making expenditure decisions. Spending plans are most effective when created in line with identified short and long term goals and realistically reflect the amounts that are available to individuals. In this sense, a proper spending plan acts as a useful reminder of one's goals and helps develop responsibility and a thoughtful awareness when making financial decisions that you might overlook if you don't have such a plan. In this regard, RBC offers useful online calculators and tools that are available to you by visiting a proper spending plan acts as a useful reminder of one's goals and helps develop responsibility and a thoughtful awareness when making financial decisions that you might overlook without having such a plan. In this regard, RBC offers useful online calculators and tools that are available to you by visiting a proper spending plan acts as a useful reminder of one's goals and helps develop responsibility and a thoughtful awareness when making financial decisions that you might overlook without having such a plan. In this regard, RBC offers useful online calculators and tools that are available to you by visitingthe Savings Corner . We help Canadian and American Expats, Temporary Guests and Snowbirds with assets on both sides of the U.S.-Canada border — optimally structure their investments, liabilities and retirement savings in order to reduce their tax burden and minimize fees.Like it? Share it! More by this author |