Jan 24, 2017
Pattie Lovett-Reid: Canadians continue to worry about money
Canadians continue to worry about their financial situation as health-care costs for the elderly, an unexpected expense, can throw those living close to margin into a financial tailspin. The inability to reduce debt is cause for concern resulting in an increase of stress for many Canadians.
A new report out by CIBC suggests while most of us have a fairly good sense of our financial goals, many Canadians do not have a clear road map in place to achieve what they want today – and tomorrow, says Sarah Widmeyer, Managing Director and Head of Wealth Strategies, at CIBC.
Of the 54 per cent of Canadians who have a plan, 64 per cent have a long-term plan that identifies their savings goals and the steps to achieve them. Thirty-six per cent will describe their plan as a budget they review regularly, but is more short-term in nature. That’s a concern because a budget is very different from a financial plan. A budget is a component of financial life but not the plan. A plan is so much more comprehensive and includes investment goals, insurance, debt management and the list goes on.
The good news is at least 36 per cent have a budget as 46 per cent of those surveyed with incomes above $100,000 do not have a financial plan at all, with 42 per cent suggesting they already have a pretty good idea and don’t need to write it down.
This is where I disagree. We all need a plan, financial goals and a regular review of the plan. If we don’t take the time to write it down, how will we know when or where to take corrective action? And, most importantly, we never really get to enjoy that moment of satisfaction when we achieve it.
