Almost half the population is single whether it is chosen or
something that happens to them after their marriage ends. If you are a
decidedly single person you may already have a great handle on your finances.
If you have recently come out of a relationship where the other partner
handled the finances you need to learn the basics of finances 101.
Having a financial advisor may be a good place to start on
your road to financial success. A lot of single people suffer anxiety
thinking about how they will manage on their own. Having someone on your
side to discuss your situation and lay out a plan of action may just be the
medicine you need to feel secure.
My mother was widowed at 43 years old. My father was
the sole income provider and also managed the household expenses. My
mother had to learn to live not just without the support of her husband but to
manage the finances, raise four remaining minor children and run a house while
worrying how she was going to manage into retirement.
The following are the lessons my mother learned and wished
in some cases she had learned sooner.
Lesson One: Know where to find all important papers
and accounts you have. Understand what insurances are in place. Now
a days you also need to know where to find passwords for all accounts etc.
My mother wished my father had life insurance. Having protection
for the family would have made my mother's life easier.
Lesson Two: Know what the cash flow is. What
income will now be coming in and what household expenses are going out.
This may have been done by your partner and you need to know what has to
be paid. My mother never worried about cash flow and just relied on her
husband to provide what she needed for the family. My mother had to
quickly learn how to pay bills and the consequence of not paying them on time.
Lesson Three: Create a budget. You may have
never had to worry or plan the finances until now. You need to learn how
to create and stick to a budget. Your budget will also help you to plan
and save for your future. My mother spent what came in and that was her
budget. Now my mother understands budgeting and the importance it has, if
you want to have a secure financial future.
Lesson Four: Pay yourself first. Ask your
friends or family for referrals to financial advisors. When you start
saving for your future you need to invest some of your money on a regular basis
so you can have an emergency fund along with your long term savings for
retirement. My mother never understood the importance of paying yourself
first and lost a lot of years of compounding because she did not have the help
of financial advisor. My mother learned this later in life, now having a
daughter in the business to help her make the right financial decisions.
Lesson Five: Get a handle on your taxes. Most
people don't feel comfortable having to deal with taxes and eventually find
they are paying large amounts of taxes needlessly. At some point the
person may ask their adult children or a friend to help them. It is at
this point you want to use a financial advisor as a resource. My mother
has me to help her. Who is helping your mother, sister, friend, etc.?
Linda
J. Levesque, CFP®, FMA, FCSI
Sr.
Investment Advisor
Director,
Private Client Group
HollisWealth Insurance Advisor
HollisWealth Insurance Advisor
HollisWealth
Insurance Agency Ltd.
Levesque
Wealth Planning
HollisWealth,
a division of Scotia Capital Inc.
One Corporate Plaza, 2075 Kennedy Road, 5th Floor, Toronto, ON M1T 3V3
Tel: 416-412-8018 / 1-800-322-4030 Fax: 416-332-6772
linda@levesquewealthplanning.com
One Corporate Plaza, 2075 Kennedy Road, 5th Floor, Toronto, ON M1T 3V3
Tel: 416-412-8018 / 1-800-322-4030 Fax: 416-332-6772
linda@levesquewealthplanning.com
‘Saving Today for a
Richer Tomorrow’™
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This article was
prepared solely by Linda J. Levesque who is a registered representative of
HollisWealth® HollisWealth
is a trade name of Scotia Capital Inc. and HollisWealth Insurance Agency
Ltd. HollisWealth is a division of Scotia Capital Inc., a member of the
Canadian Investor Protection Fund and the Investment Industry Regulatory
Organization of Canada. Brokerage services provided by HollisWealth are
provided through Scotia Capital Inc. Insurance products provided by
HollisWealth are provided through HollisWealth Insurance Agency Ltd. ®
Registered trademark of The Bank of Nova Scotia, used under licence. The views
and opinions, including any recommendations, expressed in this article are those of Linda J. Levesque alone
and not those of HollisWealth. Levesque Wealth Planning is a
personal trade name of Linda J. Levesque. HollisWealth and the Scotiabank companies do not provide income tax preparation services nor do
they supervise or review other persons who may provide such services.
