Between the ages of 20 and 30, financial planning is often at the bottom of the priority list. Still, the 1920s offer the opportunity to prepare for life. Two experts give five rules to follow at this age when anything is still possible.
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You will do your education
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Audréanne Leblanc, Desjardins tax expert and financial planner
For Desjardins tax expert and financial planner Audréanne Leblanc, the important thing is to get educated first. “Life changes enormously between the ages of 20 and 30,” she points out. Some are in school, others have children or already have a residence. This is where we learn our fundamentals in finance. ”
It suggests seeking information from reputable sources, such as government sites or financial institutions. The Quebec Institute of Financial Planning (IQPF), for example, provides a lot of information on this topic. “What is inflation? What is a mortgage? How does the tax work? You have to inform yourself and get a technical basis ”, explains Audréanne Leblanc.
Positive behaviors you will adopt
Subsequently, the expert advises to acquire what she calls transversal skills : positive attitudes towards finance. “You have to make sure at this age that you understand your relationship with money. We all have different backgrounds, education, culture and beliefs in relation to finance, which make us act differently when making decisions. ”
Audréanne Leblanc believes you should take the time to reflect on your perception of finance, which can be a source of great anxiety for some. “By developing a healthy relationship with money, you put the odds on your side for success. ”
To save you will start soon
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Catherine Patenaude, Associate Vice President, Remote Privileges Advisory Team at the National Bank
Catherine Patenaude, associate vice president, remote privileges advisory team at the National Bank, shares this advice: save as soon as possible. “You have to start planning your future early, not only for retirement, but also for plans. “These projects are varied and range from paying student debt to buying a first home, including a four-day work week,” she explains.
If money doesn’t bring happiness, it offers the freedom to make choices and some control over your life. Systematic saving makes it easier to change careers or get out of an unhealthy relationship.
You will manage your budget
We can’t get out of it, the budget is one of the foundations of financial health. Audréanne Leblanc has a trick for those who have a hard time measuring how much they spend: the reverse budget. “It’s about looking at where her money went last year. If you don’t know you’ve spent a certain amount on restaurants, for example, it’s hard to budget. ”
He adds that we often have revelations from there. “Exercise makes you more aware of your spending. This allows you to decide if any purchase is essential. I’m not saying don’t buy anything, just be reasonable. ”
Finance you will talk about
According to Catherine Patenaude, young couples have a vested interest in talking about their finances. “We absolutely have to discuss how we see money and how we intend to manage the budget, alone or as a couple. Do we want to share expenses on a 50/50 basis or on a revenue basis, for example? There are a lot of options to consider, “she explains.
For the expert, the most common mistake young savers make is not to consult a specialist. “No matter how much money you have or your income, you shouldn’t hesitate to consult a financial advisor as soon as possible. ”
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