Synergy Credit Union - Emotional happiness vs financial security

Meet Ally. She went to university for six years and owes a staggering $50,000 in student loans. She has a good paying jobs she enjoy but she is always living paycheque to paycheque. Ally wonders if she could have made some smarter financial decisions earlier in her life to have avoided this situation?

Meet Joe and Kate. On Valentine’s Day, Joe planned the most romantic proposal. Kate said yes, of course, and for the past several months, they have been planning the wedding of their dreams. But their dream plans have hit the snag of reality. While they envision a romantic ceremony surrounded by 400 family and friends, the reality is that they will only be able to afford to pay for 100 of their closest family and friends. And that’s breaking the bank before they even tie the knot. What should Joe and Kate do?

Meet Don and Diane. Married for 5 years, this couple is expecting their second child. They just moved out of their small two-bedroom condo, into a 5-bedroom house that cost more than $500,000. They are loving their new space and getting ready for their baby. But, at night, Diane lays awake worrying about how they are going to pay for their bills and the new mortgage, while saving for their children’s education and their own retirement. Decisions, decisions.

Meet Frank and Jill. In their mid-fifties, they are getting excited at the potential of retiring within the next 5 to 10 years. They started planning in their mid-20s and have enough to retire and maintain their lifestyle. With the guidance of a helpful advisor, they have made a number of smart decisions and are now set to enjoy time with their children and grandchildren, volunteer and travel. Life is good for Frank and Jill. They are both happy and financially stable.

Balancing your emotional well-being and your financial well-being at each life cycle can be stressful. In the first three scenarios, it is stressful as they navigate between what they need and what they want – or between their emotional well-being and their financial well-being. But it doesn’t have to be! Planning ahead with the help of a financial advisor can help you reach your short and long-term goals.

According to a recent report from the FP Canada Standards Council™ called The Value of Advice Report 2012, households who used a financial advisor had considerably higher assets that those who did not use one – four and a half times to be exact!

As well, according to the Financial Planning Standards Council, Canadians who have a comprehensive/ integrated plan, report higher levels of financial wellbeing, as well as emotional wellbeing and contentment than those with no planning at all (62 per cent more on emotional wellbeing than those without; 85 per cent on financial wellbeing than those without and 45 per cent more in overall contentment.

No matter your stage of life, financial planning can help you make the most out of your life today – and in the future. Let us help you figure out how you can balance your needs and your wants, while paying off debt or investing your money and still focusing on your future and retirement.

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