Women are firing on all cylinders in today’s economic environment. That especially rings true in Ontario’s healthcare system where they represent more than 80% of health care workers, many of them focused on helping others and career growth. They have become an economic force in this province and will continue to be so.  

As more women take control of their career trajectory, they are also taking control of their financial future. I have helped educate women about money and investing for decades and witnessed the evolution of women from passive spectators in household financial decisions to taking active and in many cases, lead roles, in their family financial decision making.  
 
According to Statistics Canada, women tend to live longer than men. In 2020, Statistics Canada found that male life expectancy at birth was 79 years, while for women it was just shy of 84. As a result, it is highly likely that women will be solely responsible for managing their financial future at some point in their life.  
 
Women are no longer sitting on the sidelines, they are active earners who want to not only understand their money and earnings but take an active role in making decisions that impact their financial future.  

If you are looking to take more control of your finances, it is possible to feel overwhelmed, too busy or even unsure of where to start. Rest assured; you are not alone as many people feel the exact same way.

Here are six practical tips that are a great starting point:

1. Know your numbers

The first step towards making informed financial decisions is to have a crystal-clear understanding of your financial situation. To plan where you want to go financially, you need to know where you stand today. Take stock of all the money you have coming in and analyze how you are spending that money. This step is commonly known as understanding your cash flow.

2. Calculate your net worth

At least once a year, make a list of everything you own and everything you owe. The difference between the two is your net worth. Keep in mind that your net worth is simply a snapshot of your financial life at a moment in time. In our household, we go through this exercise at the beginning of each new year. We have one goal: to be better off financially (i.e., have a higher net worth) than we were in the previous year. In our situation, we paid down debt, started investing and discovered other areas we needed to work on.   

3. It is never too late to start investing

Yes, it might have been better if you started investing years ago however, that was then, and this is now. Don’t wait, the quickest way to destroy your investment plan is to do nothing. (The sooner you start investing, the better.) And, when you start investing, follow the golden rule: never invest in only one stock, one company, one industry, one country or one currency because diversification matters. Don’t try to time the market or chase performance. Over the years, I discovered that investing in good companies that are leaders in their industry, have strong balance sheets and typically pay a dividend are worthy of consideration.  

4. Understand your tolerance for risk

Take time to gain an appreciation of how much money you can afford to lose and how much you are willing to lose when investing in the markets. Some people can be overly optimistic and think the value of their portfolio will only go up. However, if the market becomes volatile, they may find they can’t sleep at night because they are worried about potential losses. Spreading investments across cash, bonds and stocks can help achieve balance in your portfolio and align it with who you are as an investor.

5. Set financial goals

You need to set financial goals that matter to you as only you can decide on your financial priorities. Choose goals that excite you, put that money towards those goals and stop spending mindlessly on things that do not have meaning for you. Create a financial roadmap by putting your short, medium and long-term goals into writing. Your short term goals are things you would like to achieve in 12 months or less, mid-range goals are those you want to achieve in one to five years and long-range goals are things you want to happen in five years or longer. Quantify, track your progress and revise your goals as your priorities change. While they aren’t carved in stone, your goals and action plan can serve as your roadmap and help you move towards your financial destination.

6. Understand the role HOOPP will play in your retirement security

The Pension Estimator on HOOPP Connect provides you with estimates of your pension at various retirement dates. Understanding your HOOPP pension and other sources of money available during your retirement will help you live within your means and ensure you have money that lasts throughout your lifetime.  

You have worked hard to build and manage your career. However, you haven’t stopped there. By combining that effort and determination with your HOOPP pension that provides stable and reliable retirement income that will be paid for the rest of your life, you have taken key steps towards controlling your financial future and achieving financial security and peace of mind.