According to a new report by the Financial Consumer Agency of Canada, most Canadians can improve the state of their personal finances simply by maintaining a budget. However, only about 46% of people maintain this important aspect of personal finance, and 93% of people who do have a budget are not very diligent about sticking to it.
Developing and maintaining a set budget is important for a few key reasons. For example, budgeting is a crucial aspect of personal finance because:
- Tracking your expenses and income can help you set financial goals and bring them to completion.
- Having a budget can ensure that you are spending according to your personal financial priorities.
- You cannot begin to build wealth until you have a clear picture of your finances overall.
- Understanding where you stand financially can help you gain greater peace of mind and help you understand when you can make a major purchase.
Most importantly, having a budget can help you plan for emergencies as well as for the future, including for retirement. Although this study discovered that nearly two-thirds of Canadians are currently planning for retirement, this same amount were unaware of how much they should save for this purpose.
If you struggle with budgeting and are unsure of how you should properly prepare for retirement, please reach out to us at BlueRock Wealth Management. As personal finance professionals, we are here to help you prepare for whatever the future holds.