A sound financial plan for newlyweds starts with goal setting not budgeting
Wedding season is in full swing now. With the excitement of the big day, many couples often neglect talking about the less exciting business of life planning. While many experts advocate starting with a budget, it may be simpler to think about your life goals as a springboard for the financial planning discussion. Some tips you may want to consider are:
- Create a vision board: putting your life goals down on paper can help you determine your priorities and can help you identify strategies to make those goals a reality. It’s a concrete way to visually identify long-term savings goals in a way that resonates with most people.
- Pay yourselves 10 per cent before tackling debt: while many advisors advocate paying off debt first, putting aside 10 per cent of your net income into the most effective long-term savings vehicles early on will give you a head start due to the benefits of compound interest.
- Determine your tax bracket: mitigating your tax burden with RSP contributions will keep more of your money in your pocket over time. Once your goals are nailed down, established how much money is going to savings, and put in place an effective tax strategy, you can then determine what investment products will best fulfil those goals with the help of a financial advisor.