1. Protect Your Loved Ones
   Have adequate life, medical, disability and property insurances. Meet with an insurance specialist to ensure you are adequately protected.
   
   
2. Have an Up To Date Will and Power of Attorney in Case of Mental Incapacity
   Nobody should be without a will or a power of attorney-especially if you have a family to support financially.
   
   
3. Plan
   Plan for the future, major purchases and periodic expenses.
   
   
4. Set Financial Goals
   Determine short, mid and long-range financial goals.
   
   
5. Know Your Financial Situation
   Determine your net worth. It must be positive to achieve real wealth.
   
   
6. Develop a Realistic Budget
   Determine monthly living expenses, periodic expenses and monthly debt payments. Follow your budget as closely as possible. Evaluate your budget: compare actual expenses with planed expenses.
   
   
7. Keep a Record of Daily Expenditures
   Be aware of where your money is going. Use a spending diary to assist you in identifying areas adjustments need to be made.
   
   
8. Don't Allow Expenses to Exceed Income
   Avoid paying only the minimum on your credit card. Don't charge more every month than you are repaying to your creditors.
   
   
9. Save and Pay Yourself First
   Save for periodic expenses, such as car and home maintenance. Save 10% of your gross income before you have the time to spend it. Accumulate 1 to 3 months salary in an emergency fund. Put money away for retirement by opening a registered retirement savings plan (RRSP). Take advantage of current income tax rules, which allows for tax-deductible saving for retirement plans.
   
   
10. Apply Quick Debt Repayments
    By applying 20% of your net income to your debts, you will eliminate it faster and free up cash that can be used to achieve your financial goals. The faster you pay off your debts, the lower your interest cost in many cases.
    
    
11. Set Automatic Withdrawals
    Systemize your payments and savings on automatic withdrawal. Get the cash out before you can spend it. It helps goal attainment through consistent and periodic saving.
    
    
12. Pay Your Bills on Time
    Maintain a good credit rating. If you are unable to pay your bills as agreed, contact your creditors and explain your situation. Contact your SISIP financial counselling office for professional advice.
    
    
13. Distinguish the Difference Between Needs and Wants
    Take care of your needs first. Money should be spent for wants only after needs have been met.
    
    
14. Use Credit Wisely
    Use credit for safety, convenience and planned purchases. Develop a realistic budget to determine the total you can comfortably afford to purchase on credit. Don't allow your credit payments to exceed 20% of your net income. Avoid borrowing from one creditor to pay another.
    

Last Updated: May 11, 2005