Financial Planning: Stay Adaptive, Be Prepared

By | Finance

Despite good intentions, the actions of external economic factors mean that the climate surrounding your finances is never going to be static for too long. It’s important for your financial planning strategy to be dynamic and adjustable as broader context and conditions change over time.

What does this mean for those of us working hard to establish a financial strategy that works day-to-day while also creating some breathing room for future plans? Staying on top of changing rules, regulations and new opportunities can be a handful even for the type of person whose copy of the Financial Post never strays too far from view. Doing so, however, is part of the responsibility associated with building your long-term financial health.

For example, consider the recent news that limits on contributions to TFSAs (tax free savings accounts) may be set to double to a maximum of $11,000 annually. In this instance, having more room for savings to compound and grow over time is a sure benefit even if it may not be possible to contribute up to the maximum amount. It’s a significant change, and one that will no doubt raise its share of questions from Canadians looking to do the best they can with their finances (along with an equally diverse crop of answers from different perspectives along the social and political spectrum.)

It can be tough to know exactly which moves to make or alterations to consider. In light of this, you can prepare yourself for change with the right resources: first and foremost, solid advice from a trusted source or community, but also having the habits and good personal finance practices built up that will allow you to remain flexible in the face of change.

 

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