Faced with a seemingly endless turbulent political and economic situation, people in Zimbabwe often seek stability by saying: "Let's make a plan."
During my visit to "Zim" I saw evidence of the country's fairly recent runaway inflation: a $20-billion banknote.
So it's interesting that RBC's Richa Hingorani, senior manager, financial planning support, says: "Our consumer research tells us there's a direct link between having a financial plan and feeling more comfortable about your future. A plan can be a big stress-reliever at any age and helps you focus on what's truly important to you."
A financial plan can be as simple as one page on which you very briefly summarize your finances, then write three or four objectives, or as complex as a $2,500 multipager compiled after several meetings with a financial planner.
The Internet offers a variety of templates to suit your personality, knowledge and time. Choose an approach that works for you - or it simply won't happen.
Ideally your plan should list (1) your income and outgo, plus what you own and what you owe; (2) your objectives; (3) the steps to take to reach those objectives; (4) the dates for these action steps and follow-up reviews.
"This is a great way to make your dreams a reality," Hingorani said, adding - and I agree - that working with a knowledgeable, objective financial advisor in tune with who you are, can increase the effectiveness of your plan.
Start by looking for an appropriate person at your financial institution. Also ask a financially successful friend or colleague for a referral.
While what others do shouldn't influence your behaviour, it's interesting to see the RBC Financial Independence in Retirement Poll found 46 per cent of B.C. residents have a financial plan, 65 per cent have started saving for retirement (50 per cent own an RRSP - lower than most other provinces), and saving for a rainy day or retirement is more important than saving to pay off debt.
Mike Grenby is a columnist and independent personal financial advisor; he'll answer questions in this column as space allows but cannot reply personally. Email [email protected].
