There’s a quote out there that goes something like “failure to plan, is planning to fail”, and this truly couldn’t be more accurate. That said, it’s equally as important to build a plan, but don’t be afraid to change it. Having worked for many years in the financial industry, I saw client after client come in to my office devastated because they had undergone a life changing event to which they were completely unprepared for. It’s not that they didn’t build a plan; it’s that as time ticked on, they stayed the course and nothing ever changed, until it was too late.
Financial planning must be treated wholistically.
Becoming a single mom at the age of 30 was not something I ever could have planned for.
Down payment for home – CHECK
Deposit for wedding – CHECK
Retirement Savings plan – CHECK
Education Savings plan – CHECK
Life Insurance – CHECK
Separation, Divorce, and a complete restart – WHAT?!
Prior to 2013, I was proud to be within the 28% of Canadians who feel financially ready.
Saving for my wedding was a breeze! Simple lifestyle changes such as cutting back the amount of eating out we were doing, and dropping leftover pocket change into jar at the end of the day added up quickly.
Saving for retirement was also easy! Taking advantage of employer matching programs as well as automatic monthly bank transfers made this a task that I didn’t even have to think about doing anymore.
I took the Manulife #LifeReady quiz, and while due to my unexpected life changes I’m no longer within that 28% of Canadians who feel they are #LifeReady I’m going back to my original advice – Build a plan, and don’t be afraid to change it, so that what could have been a roadblock is simply just a hurdle.
Here are my single mom tips to help anyone become #LifeReady:
- Know the details of where your money comes and goes – This may sound simple, but if you go from a two income home to a one income home, you may be surprised at especially where money goes each month. There are many great free budget trackers available that can help simplify this process.
- Review what you have – If you have a financial planner, get a review done as soon as possible. You can’t figure out where to start if you don’t have a good idea of where you currently are.
- Save within your means – During a time of transition, it may be difficult to save on a scale that you once did, but it’s important to save what you can as you may not have an additional income source to fall back on any longer. Even if it means cutting out your daily latte and putting that $4 (or $7 if you’re a Starbucks lover like myself!).
- Take the #LifeReady quiz – Find out where you rank among other Canadians in the topics of Budgeting, Financial Protection, Debt, Investments, Financial Protection, and Retirement, and learn the ways you can better your current situation.
This post is sponsored by 360ACCESS on behalf of Manulife. The opinions are my own.
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