What do financial independence, transition planning and mental wellness have in common? They’re all on the minds of Canadian farmers. Three experts share their thoughts.
Financial independence
Money expert Jessica Moorhouse, host of the More Money Podcast, says developing a financial foundation can lead to financial independence.
Begin your financial planning by addressing these five questions:
- What’s your income?
- How much are your banked savings?
- What assets and liabilities do you have?
- What’s your cash flow?
- How much money goes toward savings and investments?
Tracking this information over time shows your progress and can also motivate better decisions.
A game-changer, she says, is tracking spending. A budget outlines where you want your money to go, but your spending is the reality of what happens with your money. And typically, spending is higher than what was budgeted.
By tracking spending, you can pinpoint problem areas where you can make changes to meet long-term goals and achieve financial independence.
Part of that independence requires budgeting for emergencies. Without an emergency fund, unexpected expenses could force asset sales or increased debt. Moorhouse recommends saving up three, six, or nine months of living expenses.
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