Financial Mistakes Should be Corrected
March 24, 2024
Correcting financial mistakes can help you achieve your financial objectives, writes Peter Watson.
Everyone makes mistakes. That is normal, so consider that a characteristic of being human.
Correcting mistakes does not always happen. We will consider this reality in the context of your personal financial planning.
We will consider some examples.
Your ultimate financial planning goal is to prepare for retirement.
That means you should start saving. One way that can be accomplished, if you are eligible, is making contributions to your Registered Retirement Savings Plan.
Determine the amount of contribution you would like to make each year. Then at the end of the year see if that was done.
If you failed to make the contribution, then you might consider that a mistake. The goal is to never make the same mistake twice. One way to help yourself manage RRSP contributions is to set up a regular monthly contribution plan.
The financial institution of your choice will automatically take out a monthly sum from your bank account. That is one example of how a previous year’s mistake can be converted to a success in future years.
Do you have adequate insurance to protect you and your family if you lose your income through disability or death?
Do you have a power of attorney for both property and personal care? Is your will up to date?
Financial planning is the process of determining your objectives and then deciding what tasks should be completed. Having your plan in writing will be helpful to establish what needs to be done and then monitoring the completion of those tasks.
The key to success is if you’re not successful in accomplishing specific tasks then determine what steps are needed to correct that mistake.
Peter Watson, of Watson Investments MBA, CFP®, R.F.P., CIM®, FCSI offers a weekly financial planning column, Dollars & Sense. He can be contacted through www.watsoninvestments.com
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