School is not over yet. No matter which direction you choose, you have to prepare yourself to become financially independent. Financial dependency is a very dangerous place to be, especially if you do not have a strong financial support structure, you may find yourself incurring debt to afford your everyday life.
Therefore, learning the definition of wealth and how it is applicable to your situation is vital to achieving your goals in life. Some goals may not require money; however, it may require time. Time is a very valuable commodity. Unfortunately, if you are working around the clock to afford your everyday life, then you may not be able to afford to take time off to achieve your goals.
An individual who is able to pay their monthly bills effortlessly, without the use of credit, is considered ahead of the game today. The average household debt in Canada today is approximately 150% their annual income. That means if your household income is $50,000 your household debt could equal $75,000 on average. You do not have to be rich to be wealthy, even an individual making $15/ hour could become wealthy.
Fortunately, most young Canadians graduating high school reap the benefit of being debt free; therefore, they are able to start their adulthood with a clean slate. Young Canadians should be cautious applying for credit cards and/ or lines of credit. If you are unsure today when or how you will be able to pay off your debts, don’t apply.
An important lesson to learn is how to build wealth effectively without incurring financial obligations. The first step is to know where you are today before mapping out your path to your next destination.
To begin the planning process please click the icon below: