My Daily Thoughts


Personal Financial Model

Someone’s sitting in the shade today because someone planted a tree a long time ago.
Warren Buffet

For most of us here in Canada the big components of our financial plan are our house mortgage, our TFSA, and our RRSP.

A good financial plan consists of what those numbers are from now until we are 100. Personally, if I run out of money at 100 I will be very happy.

It is important that we determine and then record what those numbers will be. There are many ups and downs over the years making it very easy to lose sight of the overall plan. Knowing how much money you are planning to have at any given age gives you a measuring stick.

When you are younger it can seem like the amount of money you need is a long way off. But if you can see how much money you need for your age, you know you are on the right track.

Without the plan, it is hard to know because you are always measuring against the final amount you need. As an example, if you are doubling your money every 10 years then you only need 10 years to make half the money you require for retirement. You need 20 years to make 3/4 of what you require.

Create your pan and write it down somewhere you will review it often.

Live the Adventure


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