A long long time ago and very far away we were given some sage advice. Newly minted professionals and still green behind the ears we listened. And then we acted upon the words of wisdom.
We, through different routes, had escaped to the “real world” with no debt from our years at school. Having just moved to Lotus Land and even then we couldn’t afford real estate with the interest rate at 18% and prices through the roof.
But Ron’s dad strongly encouraged us to put some money into RRSP’s so at the tender age of 22 we did. Smart move. One we kept on repeating as often as we could.
Plus we did a budget and stuck to it. We have always and will always. Some years there is more wiggle room than other years but throughout it all we have kept putting funds aside.
Old age security (OAS) and Canada pension plan (CPP) will not take one far. I don’t think that imperative is too strong of a word. Other savings are imperative to a retirement life style where one doesn’t have to worry about outlasting their funds. Which means that compound interest is your friend and that saving early is best but starting at any point in time is better than never. Paying down debt and saving for the future are vitally important. Live within your means as you just never know how things will turn out in this job market.
Find a true financial advisor and sit down to examine your financial life, critically. A financial adviser isn’t just the once a year guy that you see for RRSP’s but the person you should consult and review short and long term plans with. We’ve been lucky to have a good one on our side. He says we are model clients as we plan ahead and have a realistic grasp of what we spend. Now, of course, our “projects” haven’t been cheap but they weigh in as a long term equity.
Your decisions today affect your future stability. Think about it.