Steps to financial independence
Financial success is a journey, not a destination. Are you taking the steps to get you on the road to financial independence and keep you there?
Check the items that you have provided for or are in the process of providing for.
- I have set reasonable and achievable financial goals and check to ensure I'm on track.
- I have eliminated outstanding loans and do not carry a balance on my credit cards.
- I have established an emergency fund totaling three to six months of expenses.
- If I were to die or become disabled today, my family would have sufficient resources to maintain my family home and care for my children.
- I have sufficient life insurance to cover all my outstanding debts, including mortgage and final expenses (burial costs and probate fees).
- I fully understand all the options available under my employer or association plan.
- I am maximizing my RRSP or spousal RRSP (if applicable) and have diversified my investments to reduce risk and investment vulnerability.
- I consider borrowing money to invest in my RRSP if I can repay it within the year.
- I am saving and will have adequate funds for my children's education.
- I have a mortgage with an amortization schedule and payment frequency that will save interest and pay off the mortgage in the shortest possible time.
- I have a current list of important papers and their location (for example, bank accounts, stocks, bonds, insurance policies, etc.).
- I have credit cards in my own name so that I can maintain a good credit rating independent of my partner.
- I have an up-to-date will that ensures that my beneficiaries will receive their rightful inheritance.
- I have appointed a power of attorney for managing my property as well as my personal care in the event that I am unable to do so myself.
- I have personal coverage to supplement the group life and disability insurance I have through my employer or association.
- I have a plan in place to cover future health care and nursing home costs for my parents.
How is your financial future shaping up?