Summer is just around the corner, and it’s time to relax and enjoy the warm weather. From a financial standpoint, this means cultivating a sound strategy to keep your money working for you — even when you’re on the water.
Follow these tips to make sure your investments don’t take a break:
- Have a plan. It doesn’t have to be elaborate, just one that makes sense for your short-term and long-term financial goals. It can be as simple as putting a set amount of money aside for a rainy day or as involved as developing a longer-term plan for your retirement.
- Save a little every month. We’ve all heard the rule-of-thumb that you should “pay yourself first” by putting money into savings. But with so many opportunities to spend, it’s easy to let things slide. Sign up for an automatic savings plan and watch the miracle of compounding interest help your savings grow.
- Open your statements. It sounds simple, but many people don’t bother to open their investment account statements. Take the time to read your statements and ask your advisor about anything you don’t understand.
- Communicate. Be sure to keep your advisor up to date on any changes — both good and bad — that might affect your financial situation. Deciding what to do with added income from a raise is as important as adjusting your plan to deal with a job loss.
- Meet regularly with your advisor. Do it even if there are no changes. Take your statements to the meeting and ask questions.
It’s never too late to become a more informed investor and build good savings habits. Find more information online at investorcentre.ific.ca.