How to manage your finances

As bookkeepers and tax professionals we are in a position to help business owners and individuals understand their income and expenditures. However, we cannot provide you with investment advice. So we spoke to Ron Pavon previous owner of LBI Financial Services and Regional Director of RBC Insurance to help us bridge the gap.

Ron has been in the sales profession for over 20 years, with the last 11 years being in the Financial Services Industry. 

Why is it important for people to manage their finances and know where their money is going?

Money is a big part of people’s lives today.  It’s the tool we use to acquire life’s necessities such as food,  shelter, clothing and other luxuries such as phones,  cars, etc.

Managing money and more importantly,  cash flow is critical to anyone who has a goal that they want to achieve.

If someone is self-employed and they need to save money to pay their tax bill what kind of account should they use to park this money?

It depends on their risk tolerance.  As an advisor, we always have to take that into account before advising a client any investment solution.   The good news is, there are many solutions available in the marketplace to solve these issues.

Do you need to have a lot of extra money to invest?

No.  The key thing is to start.  If you don’t start,  your money cannot compound.  Setting up monthly contributions go a long way.

Why is investing in the future important?

People are living longer and our economy is making it harder to afford basic life needs,  and this is for people who are working now.  Someone retiring 10+ years, with no significant retirement savings will have to keep working to earn a living at a time when their bodies will start breaking down due to age and potential health problems.

Combine that with the fact that government programs are continually being cut, then it becomes a situation you don’t really want to be in.

What is the minimum amount of money someone should invest to make a real financial difference in their
life?

They should invest what they can afford while maintaining the type of lifestyle they want to live.

What financial advice do you have for small business owners? and for employees?

Every business is different and will have different needs.  They key is to work with a professional Advisor who has access to many products in the marketplace and will take the time to sit down to get to know your situation.   You want to avoid “product pushers” who sell you products without getting to know you.

Business Owners need to focus on what they do best which is to work on their business.  They need to hire professionals to do all the other things for them, such as matters relating to money, Investments,  and insurance.