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Finance

Lifetime approach to better fiscal fitness

To stay on the right track for each decade of your life, you need to stop moving your money problem around—raiding one pot to pay a debt in another pot. Start by stashing away your credit cards and live within your means every day of the month.

In your 20s:

Pay off your debt and clean up your credit score. Stick to a lifestyle that allows you to pay down your debt and save a little too. Understand how your credit score is calculated and learn how you can improve it. A great rating will reward
you with low interest rates and a bad one will taunt you like a bully.

In your 30s:

Save for a down payment for a home and build an emergency cash fund. If you don't have the five per cent or so, you're not ready to own. Start by setting up automatic monthly transfers from your chequing account to an account designated for your homeownership goals. And don't forget to build a cash reserve too—eight months worth is what most money experts recommend.

In Your 40s:

Save for retirement first, and then for your kids' education. Take advantage of your employer's retirement plan contributions, and start putting away 10 per cent of your income toward your retirement goals. If you can't afford that,
contribute what you can.

In Your 50s:

Speed up your mortgage payments. Now is the time to increase your mortgage payments. You'll save money on interest and head into retirement without large, looming bills. It's a win-win combination.

In Your 60s and 70s:

Live comfortably through your golden years—you've earned it. Travel the world and enjoy hobbies you could not pursue while you were busy working and saving. Fulfill your deep sense of purpose through philanthropy—become an activist, volunteer with a local organization or sponsor a child in need through an organization like Christian Children's Fund of Canada (www.ccfcanada.ca). You can even meet your sponsored child, and see first-hand how your support helps children who need it most.



If you need any help through the stages call us today (250) 862 1806 or visit our website - Okanagan Mortgages.



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About the author...

Laurie Baird is a Mortgage Broker with Verico Complete Mortgage Services. She has been in the mortgage business for 17 years starting as a lender with Royal Trust. She later worked at the Royal Bank as a Mortgage Consultant and 11 years ago became a Mortgage Broker. As a Mortgage Broker she is able to match her clients' needs with a lender who will provide them with competitive rates and products. Laurie has a Bachelor of Education degree from UBC.

Contact her at 250-862-1806 or by fax 712-0209 or visit:
http://www.okanaganmortgages.com/

Visit Laurie's blog at: http://www.okanaganmortgages.com/blog.html




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The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet presents its columns "as is" and does not warrant the contents.


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