Do You Have a Financial Plan?

I thought I would take the time to share my own financial plan over the past few years:

1) Sat down with a Primerica Rep and got an Free Financial Needs Analysis, which showed me how to get out of debt quicker with a clear, concise plan. I then became properly insured for half the price I was paying before. Started saving $40 per month in a RRSP.

2) Consistantly followed the plan of getting out of debt. Felt better with how my financies were being handled. Watching my debt shrink, and my savings grow.

3) Under advice from Primerica, started up an emergency fund. We started to save $200 which went into TFSA, and could be withdrawn whenever I needed it. (This eventually became our Wedding fund).

4) Because I became a Primerica Rep myself, I was able to save receipts for gas, cell phone use, write off portion of my rent, a new desk, and a new printer for business use. My tax return including my RRSP contributions was $3,000. Used the $3,000 to pay off one credit card in full.

5) Continued to follow the financial plan, I increased my RRSP contributions to $80.00.

6) Any money made as a Primerica Rep went strickly to wedding plans. Wedding was completely paid for in cash. No debt owing at all.

7) Share price slightly down in RRSP, perfect time to increase the contributions, now contributing $120 per month. That allows me to purchase more shares at a cheaper price! Yay, I love sales.

Once debt has been decreased further, will eventually contribute $300 to $400 per month. That will give me a tax return of $1,152 - $1536. Which could go towards paying down debt or go back into my RRSP.

Another option most people do not consider, is, using a portion of their tax return to make charitable donations. What that will do is trigger more deductions on your next tax return. It is all about making your money work harder for you.

8) Plans to purchase a home in the future. Because of the First Time Home Buyers Program we can use money in a RRSP towards the purchase of a home tax free. We will apply for a RRSP Loan of $15,000 through our company. That will give us a tax return of $4800, which we can use towards paying down the loan. Plus, since I would be the writing agent, I would make money on that sale as well.

Most people don't plan to fail, they fail to plan.

What is your plan?

Mitchell Labiuk