Boss Blog: June 28, 2017
The Strength of Saving
This is Savings week here at Budget Boss and to be totally honest, helping people with saving money is my favorite part of the job. As a financial advisor, I help people with financial plans that include insurance, investments, mortgages and many other products. Amongst everything I do, it is saving money that really gets me going. You could probably tell that by it being a common theme amongst most of my content. I do sometimes take a nagging tone with my posts and I hope it doesn’t turn people off. Most of my work promotes the utility of saving to prevent disaster. I know all this from personal experience. Being poor is one of the worst things you can be. Every day is a struggle to pay bills, pay for food, let alone have any sort of fun. Sleepless nights follow and the pain is real. This post will not be about that. In this post, I will discuss what savings can accomplish for you. Opportunity is the name of the game. Savings will literally set you free! We all know about the common ones, buying a house, vacations, retirement, etc. In this post, I will discuss some of the less common things savings can help you do.
1) Job Security
You might be asking yourself, “How does having money make my job more secure?” Those extra zeros in your bank account won’t help you with your security at your current job, but it will help you be secure in employment. Let me explain. In the grand scheme of things, your current job isn’t as important as you think. What is important is that you make money. The way I see it is this: If you are good at your job, work hard, and are generally pleasant to work with you will always have a job. That doesn’t mean that you won’t ever lose your job, the robots are coming! What it means is that you are an in demand commodity that deserves good, fulfilling employment. Savings will allow you to weather employment storms throughout your life. Savings could allow you to go back to school to upgrade your resume. Savings can also allow you to pursue being your own boss and starting your own business. That’s what I did! Savings is leverage. It is a safety net that allows you to weigh options in employment rather than being a slave to a paycheque. You can take that calculated chance as opposed to being the “whipping boy” of a jerk boss. Knowing I don’t need to rely on a terrible boss is worth any level of hard work in my opinion.
2) Investment Security and Acquisition
Markets go up and down, we all know that. Do you know what doesn’t? Cash!! All successful companies keep cash on hand and personal investors should be no different. The reasons are simple; you have to hedge down markets and be able to take advantage of opportunities. A down market is a buying opportunity. An unused RRSP contribution is an opportunity for tax deductions. Lump sum mortgage payments are an opportunity to grow your net worth. If you don’t have cash on hand how do you take advantage of these opportunities? Taking advantage of opportunities protects and strengthens your existing investments. You dip into cash to win, you don’t borrow to win. Being liquid and having savings is part of any diversified investment portfolio. Cash is King!! Always has been, always will be!
3) Net Worth Growth
Saving for a down payment for your first home can be daunting. The first is always the hardest. Now imagine you want to own a rental property. Owning an investment property is one of the greatest ways to increase your net worth. All assets you own are part of your overall net worth and using cash to grow that number is vital. Just like taking advantage of investment opportunities, using cash to find a way to increase your net worth can make your life dramatically better. Imagine you have a business opportunity that would help you diversify your income. I always recommend having multiple income streams but one thing that often holds people back is the lack of funds. I personally know several people that could launch very lucrative businesses if they only had the funding. This is another great way to boost your net worth but also secure your income. Having your hand in many pots is huge. Every dollar added to the pile is crucial and if you can take 1 dollar and turn it into 4, even better.
My job as a Financial Advisor is to help my clients grow their net worth, save for the future and protect the ones they love. To be totally honest none of it works unless people are actively saving their money. That is why I always advocate “Paying Yourself First.” You have to look at your future self as a more important person than your current self. For me, the best decisions I have ever made regarding money have all been when I actually had it. Desperation and insecurity caused me to make some real bonehead moves. Now, I feel more secure in my employment. I feel I have the ability to take advantage of opportunities. I also know I am constantly finding ways to increase my net worth. Savings plans don’t have to be complex and they don’t have to be painful. I have clients saving anywhere from 50 to 1000 dollars a month. They are different stages in their lives and have different goals. The key is that they are both on their way to achieving those goals. Being a saver and not a spender isn’t just a way to live, it’s the only way to live.
“If you don’t get serious about your money, you will never have serious money.” – Grant Cardone
https://budgetboss.ca/boss-blog-excuses-will-kill/
Facebook – @JoeBudgetBoss LinkedIn – Joseph James Francis Quora – Joseph James Francis
Twitter – @JoeBudgetBoss Instagram – @JoeBudgetBoss
Joseph James Francis is a Financial Advisor. You can find him on various social media platforms and at www.budgetboss.ca.