5 Key Pillars of Personal Finances
The 5 Key Pillars of Personal Finances are the foundational building blocks of an individuals finances to build a strong financial foundation - these pillars are Debt Management, Housing Affordability, Resilience Fund, Investing & Credit Worthiness.
We recognize that financial systems have changed and are way more complex to navigate. No one has taught us how to set up our finances to thrive and how to approach money management in a comprehensive way.
As the cost of living rapidly increases, it is no longer good enough to save some money, pay our bills or only focus on one or two aspects of personal finances. To help you achieve your financial goals, we have designed this framework to help you organize your money, build good financial habits, and reach your goals sooner. The 5 Key Pillars set you up for financial success now and in the future.
Debt Management is not only about what you own other people but also about what you owe yourself.
Debt is a tool we can use that gives us opportunities we would not have otherwise had. Today, most young people start their adult lives with some form of debt, mainly student and consumer debt. Managing debt and making informed debt is crucial as it impacts all areas of your life now and in the future. With 50% of Canadians $200 away from bankruptcy, we help you understand how much debt you can take on while helping you develop skills and knowledge to manage it better!
Housing is typically most peoples biggest expense, yet most people don't know what it means to have affordable housing. With housing prices spiking to 31.6 percent year over year March 2021, housing affordability has been a hot topic.
An individuals housing affordability is critical to the their overall financial health as it is most peoples largest expense. We help you understand your true cost of housing, strategies to enter the real estate market and how to maintain affordable housing so you can live a less stressful life. Its imperative more than ever now to be more mindful about how we approach money to keep us away from being house poor.
Financial resilience is the ability to maintain your status quo when life happens. It gives you the ability to get through the tough times without any or minimal financial setbacks.
Nearly 40% of Canadians cannot cover the cost of an unexpected expense or financial emergency. This means any additional expense will likely require them to take on quick accessible high interest debt such as credit card debt. We help you understand exactly how much you need to get you through 3-6 months of a financial emergency or crisis.
Taking a risk for positive future outcome is investing. There are many ways and tools to invest your money no matter how little. Regardless of the tool you chose, you should only take on as much risk as you are comfortable with, as there is always an opportunity to lose your investment.
As a young investor you have many benefit to start investing now. Your biggest advantage is time. It allows you to take full advantage of compounding interest as. This when your interest earned on invested money starts to earn more interest over time. We help you understand various investing tools available, different investment strategies, and how to determine your investing risk level.
Your ability to be trusted with money, financial responsibilities and even your job is measured by your credit score. Your credit score is determined by your behaviour towards debt, which determines your credit worthiness.
692 is the average credit score for people age 18 - 35 and is considered fair. With a fair credit score, you will likely not have access to lower interest rate on debt products or even qualify for. Credit worthiness has the ability to impact your ability to make money which impacts every aspect of your life. We help you understand how you can build credit worthiness and positive behaviours that build your credit score so you can access the best possible financial opportunities.