THE FOUR PILLARS

How do you feel about your money?

Money conjures up a variety of emotions. Among them, worry, anger, anxiety and even excitement. Some find saving money easy, while others find saving money difficult, regardless of how much they earn. Even the way people save depends on the individual.

Despite our emotions and beliefs, there are basic principles of how people interact with assets. These represent the behaviours we all have. Essentially, there are four things we do with our money:

EARN IT | SPEND IT | INVEST IT | PROTECT IT

Pillar one - Earn it

There are a number of different ways to earn money. The most common way is through regular employment income. During our working years, we try to make our jobs as profitable as possible.

Pay yourself first...

Whether you are saving for a down payment on a house, saving for a car, or saving for a trip, the most effective method is to have the money come directly off of your pay check or right out of your bank account - before you have the chance to spend It.

Pillar two - Spend it

The "spend it" pillar is often overlooked. With easy access to credit, the average Canadian is spending more than they earn.

Smart spending is a great way to decrease household debt. We can all use a little help from a professional when it comes to this pillar.

Someone's sitting in the shade today because someone planted a tree a long time ago.

-Warren Buffett

Pillar three - Invest it

Investing money is an important part of planning for financial security. This pillar focuses on setting aside money for planned spending - events for which you have a specific goal. These events could include retirement, a new car, your kids education etc. This pillar also aids with efficiently managing your emergency reserve. When choosing the right investment for you, you should make allowances for both planned and unplanned events.

Remember...

A goal without a plan is just a wish. A solid financial security plan can help you understand how much you need to save and the type of investments you should hold.

Pillar four - Protect it

You have earned it, you have made efforts to spend it wisely, you have decided how to invest it - now you need to protect the money you have worked so hard to get. There are many financial tools and products to help manage your financial risk and protect your money.

Earn it, Spend it, Invest it, and Protect it...

These are the four pillars that support your money. With powerful tools and an array of products to meet virtually every financial need, we can help you manage all four pillars of your money and create a one-of-kind personal financial plan that is as unique as you and your needs.

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