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Lessons Learned from the Past

Lessons Learned from the Past

February 25, 2021

Use fundamental financial planning ideas to help you achieve your long-term objectives, writes Peter Watson.

A friend gave me the synopsis of the book she was reading. The irony was the main ideas of this book published in the early 1960s were the same fundamental ideas of a course she had just completed.

That made me think of many courses, conferences, and studies I have participated in over the years.

Great ideas often stand the test of time.

We can apply this notion of solid, basic good ideas to your area of personal financial planning.

Much of what is written on financial planning is just restating what has been understood for several decades.

Set a target of what you want to achieve. This could be saving enough money to help your children with their post-secondary education or planning for your retirement.

Make your target specific and then measure progress. In my opinion, unless you consistently measure your progress you are unlikely to achieve your goal. For example, you or your financial planner might decide to recalculate your progress annually.

Pay yourself first. For many there is not enough money at the end of the month to save. There is a simple solution for that.

At the first of the month, pay yourself first. Before you’ve had time to spend, allocate a certain amount of money to be deducted from your bank account and transferred to an investment.

A fairly simple time-tested process. Articulate an objective, plan to monitor your progress on an ongoing basis and finally start an automatic savings program.

Use the simple easy to follow principles that have been around for many years.

Peter Watson is registered with Aligned Capital Partners Inc. (ACPI) to provide investment advice. Investment products are provided by ACPI. ACPI is a member of the Investment Industry Regulatory Organization of Canada. The opinions expressed are those of the author and not necessarily those of ACPI. Peter Watson provides wealth management services through Watson Investments.