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Four steps to Good Financial Stewardship and Why You Should Be One

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As you know I am passionate about the need to be smart with money. Another way to say that is to have good financial stewardship. Stewardship means ‘the conducting, supervising, or managing of something; especially: the careful and responsible management of something entrusted to one's care’. So being a good financial steward means you are taking care of your money for yourself, your family, and even for others who need help.

 

What is required?

Four things are required by individuals to become good financial stewards, achieve family financial independence, and increase your ability to help others. You will need:

Process: which means taking responsibility for results by setting specific goals for meeting financial objectives and stick to them
People: the right team of people to help you set and achieve those goals
Plan: well defined strategies with enough flexibility to adjust to changes, understood by everyone in the family including your caregivers and executors

Product/Services: the right combination of investment and insurance products/services within the right legal structures: personal, corporate, trust, etc.

 

Process

Process requires you to think about what you want to accomplish in this life financially. This is more work than you think, as it covers the life you want to live now and later, what you want for your family, whether you want to help your church or community, and what kind of legacy if any you want to leave. Process also involves following through with any plans made to achieve the goals you have set.

 

People

Having the right people on your side, means you have professionals working for you who understand what you are trying to achieve AND who care about you. Or, if you are not sure about what you would like to achieve, the right people can help you figure it out. The financial world is highly complicated and getting more so all the time. A professional and caring lawyer, accountant, advisor, etc. can make or break your ability to reach your goals.

 

Plan

After listening to what you have to say, your people will help you develop a plan with strategies you can stick to. Life happens to everyone, so enough flexibility will have to be built in for emergencies or changes in your plans. Your plan will have to allow for changes to health, family, job, etc.

 

Products/Services

In order to meet your goal of good stewardship you may need to use a number of different products/services. With the tens of thousands of products/services available to Canadians, having the right mix can be daunting, but of utmost importance. If you have the wrong product/service, you can pay too many taxes, not have your assets in the right place, or miss out on incentives offered by the government to help Canadians be good stewards

 

Creating wealth is not necessarily selfish!

I feel we need to take care of ourselves and have enough left over for charity. If you develop the right plan and stick to it, you can provide financial independence for your family and have enough left over to donate to any number of charities that make life better for individuals around the world.

 

If you would like to discuss what you need to become a good financial steward, please call me at 250-847-4686 or email cathy.stanton@manulifesecurities.ca. Check out my website to learn more about who I am what I have to offer: cathystanton.com.