“Knowledge is power”.
But it’s not enough.
Everyone’s heard that ‘knowledge is power’. But here’s a newsflash: knowledge alone won’t achieve your goals. It’s when that knowledge is put to use that it has the greatest impact. Case in point: you know what a budget is … but you have to actually follow one to save for the things most important to you (be that a down payment or a long and happy retirement.)
That’s why, at Educators, not only do we provide information on a wide range of financial subjects (feel free to consider The Learning Centre your own personal financial library of ‘must-know’ information), we also give you practical, easy to use online tools to put that knowledge to use. You’ll find calculators for:
- Big Purchases;
- Net Worth;
- Registered Education Savings Plans (RESPs);
- Taxable vs. Tax-Deferred Calculator.
The story of an education member, our online tools, and saving for a down payment.
Our fictional example, John, has been teaching for three years now and loves it. He also loves the idea of having his own home … but worries whether he’ll be able to save up enough for a down payment. After all, he’s still on a lower pay grid and paying off a student loan. Lucky for him, John is a client of Educators Financial Group, where there are experts with experience helping education members achieve their goals. His Certified Financial Planner professional set up a 3-point plan for John, which utilized some of Educators’ online tools.
First step, set up a budget.
Our online Budget Calculator is great, because it provides a clear picture of ones income and expenses. The budget item allocated as ‘savings’ would go towards building a down payment. John’s Certified Financial Planner professional also discussed with him the importance of saving for an Emergency Fund, for use in case of periods of salary disruption.
Second step, free up more monthly cash flow.
By looking at his budget, John came face to face with the amount of interest he was paying each month for his debt. In addition to his student loan, he had a car loan and a credit card (at a walloping interest rate of 19.5%). He was surprised – as are many of Educators’ clients – how much he could save if he consolidated his debt into one, low interest rate line of credit (Educators’ unsecured line of credit can be as low as 4.35%*). The hundreds of dollars he saved on interest each month went directly into his savings, and he never missed it since he was used to not seeing it anyway!
Third step, set up a pre-authorized contribution plan (PAC)
PACs make investing automatic. John chose to have money transferred monthly from his chequing account to invest, but you can choose any period – weekly, bi-monthly, semi-monthly.
He can see his progress, week by week.
With a budget, John has the motivation of being able to see his progress towards the down payment he’ll need. With the help of his Certified Financial Planner professional, he has been able to save more money each month, and he knows it’s just a matter of time before he reaches his goal. When he is ready to make a purchase, he can talk to an Educators Financial Group Lending Specialist about the kind of mortgage he’ll need.
Knowledge and tools – together, they get the job done.
Contact an Educators Certified Financial Planner professional today about how our online tools can help you achieve your dreams.
*Rates are subject to change. Please speak to our financial specialists for more information.