Financial Checklist: 10 Simple Steps to Financial Security and Building Wealth

Financial Checklist: 10 Simple Steps to Financial Security and Building Wealth


The fundamental purpose of financial planning is to help make better financial decisions and to make sure that your money is put in the right place. With a good plan, you can not only ensure financial security, but you can also build sustaining wealth that can last for generations. Here’s a look at 10 simple financial steps you can start taking today.


1) Create a Budget

When it comes to money, it is always important to have a plan. The best way to ensure that your money is being spent properly is by creating a budget. With a monthly budget, you can track where your funds are going and properly plan for your future investing needs.

The good news is that there are a number of easy-to-use apps that will allow you to budget your money. Here’s a look at some of the top budgeting apps now available:

●      Simplifi by Quicken

●      Mint by Intuit

●      Wealthica


2) Start a Savings Plan

The first step to building wealth is to save money each month. This can be a challenge for some people because there is natural pressure to pay bills before paying yourself. To help ensure that you can pay yourself each month, you can contribute monthly with a pre-authorized contribution (PAC) to an investment account. This will allow your investment account to receive funds each month which can be deployed for you to invest.

So how much should you save? Ideally, you will want to save about 10% each month. If you are looking to retire at an earlier age, then you will want to save more than 10%. No matter what your savings rate, be sure to put some money each month to put you on a path to wealth.


3) Review Your Retirement Plan Contributions

It’s a good idea to look at your retirement plan contributions to ensure that you are hitting your goals. For instance, if you want to retire early, then you will want to start investing in your retirement earlier. If you begin to invest later in life, then you will have to save and invest at a higher rate.

Also, it is a good idea to discover how much that you want for your retirement. This will play an important role when it comes to deciding how much to save and invest each month. Working with a financial advisor, you should be able to have a plan that will work to fit your needs.

4) Max Out Your Registered Plans

A key to reaching your retirement goals is to take advantage of the various tax shelters that allow you to avoid paying immediate taxes on your capital gains. Be sure to contribute the maximum to your RRSP, TFSA & other registered plans. Here’s a look at the specifics of RRSP and TFSA:

●     RRSP - For the 2024 tax year, the contribution limit is $31,560.

●     TFSA - The maximum contribution for a Tax Free Savings Account in the 2024 tax year is $7,000.

5) Rebalance Investment Plans

The investment markets can become volatile. That’s why it will become necessary in your investment portfolio to ensure that you can enjoy smoother returns and reduce volatility. For instance, if you own one stock that doubles in price rather quickly, you will want to reduce that position and use the proceeds to add to small positions in your portfolio.

Some people rebalance their portfolio once a year. You can also consider rebalancing your portfolio every six months. With regular rebalancing, you should enjoy a stable portfolio that is less susceptible to big swings in the markets.

6) Create a Will

You want to make sure that your money goes to the right places for generations to come. That’s why it is important for you to create a will as soon as possible. With a will, you can ensure that your personal belongings, assets, and investments go to your beneficiaries.

In order to have your will legally created, you will need to list your personal belongings, designate those possessions to beneficiaries and assign an executor for your will. You can adjust your will as your needs or your preferences change.

7) Build an Emergency Fund

You never know when the unexpected is going to happen. That’s why it is important to have an emergency fund ready to either protect your or your business. It is recommended that you have anywhere from six-months to 12-months of total expenses in your emergency fund.

So, what kind of emergencies can pop-up? You may be surprised at the types of disruptions that can affect you and your business:

●     Economic downturn

●     Health emergencies

●     Natural disasters

8) Check Your Credit Report

Your credit report is key when it comes to securing the best interest rates for a home loan, auto loan, or business loan. Therefore, you will want to monitor your credit on a regular basis. You can get free access to your credit report at

Your credit report will include a credit score that will range from 300 to 850. An excellent credit score is considered to be higher than 800. However, you can get competitive interest rate loans with a credit score above 740.

9) Enroll in Automatic Bill Payments

Of course, you are busy.Therefore, it may be possible that some bills may slip past you. The best way to avoid missed payments, late fees, and dings on your credit score is to enroll in an automatic bill payment program. With these programs, your bills are automatically paid before they are due.

You can enroll in an automatic bill payment plan at your local financial intuition or with online banking. Be sure to include all of your bills and make sure that the account is well funded to handle the payment of each bill.


10) Review Insurance Coverage

You never know when the unexpected is going to happen. Therefore, you will want to make sure that you have the right insurance coverage. Be sure to check that each policy covers incidents that you may encounter and that you have the right level of coverage.

Here is a look at some of the insurance policies that you should review:

●     Life insurance

●     Auto insurance

●     Home insurance

●     CriticalIllness Insurance


Keeping Your Financial World in Order

Your financial life can run smoothly when you have the right plan in place. Contact Silver Cedar Wealth Management today and we can help you reach your financial goals. With the right plan, you will be well on the way to financial security and building your wealth.




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