Ashleay: Welcome to iA Financial Group's “In Your Interest!” podcast, where our goal is to share with you the essentials of economic news and its impact on your finances. My name is Ashleay and this week we are sharing with Sébastien McMahon his financial cocktail. We are live from the lounge. We're lucky we've got people with us this week, so we're giving bite-sized information for a little summer version of our capsules. So, hi, Sébastien.
Sébastien: Hello, Ashleay.
Ashleay: Great to have you here as always.
Sébastien: Thank you. Nice to be here. And I'm kind of worried that people will say that this is the most boring cocktail that they've heard of in their lives. But let's make it quick and just say this is just going back to the basics. So, if you want to have long-term financial health, maybe a few reminders so that maybe you can start thinking about, while you're enjoying your vacation, about, thinking, am I on the right path or not? So, first thing's first, have a budget (that's the first thing) that you can follow. Just like a diet. You know, the best diet is the one that you will follow through the end. Well, the budget is the same thing, alright? It's always, you know, moderation is important and moderation in moderation also. So, make sure it's a budget that makes sense, that you can still have some fun, but at least that you have a track towards your long-term objectives. Being consistent pays off. Often, it's recommended to save about 10% of your income to build your retirement. If you have a pension plan in your work, well, of course it changes the calculus, but still being able to save regularly. No amount is too small and developing good habits. That's how you succeed in the long run. So, for example, in the habits, if you have a salary increase, maybe you can use some or all of these increases to start saving every week, every two weeks, every month. So, just to have regular savings. When you finish paying off a purchase like an auto, maybe you can use a part of the payment that you were making there to pay yourself. So, to save money for your retirement. The key here is to start early and to be consistent. You know, Albert Einstein always said that the strongest force in the universe is compound interest. So, it's a powerful force. It's available to everyone, but you just have to give it time. The first year, it doesn't make that much of a difference. But when the years stack up, well, you make interest on the interest that you've made in the past. And this is how you see the power of compound interest. Maybe a little addition in the end, investing in yourself, in your ability to generate income. That's very important. And always remember that investing is not speculating. If you're thinking that to invest, I need to spend time to do some day trading in stocks, you're off. You're off the… you're on the wrong path. Savings. Saving for retirement should be one of the most boring things that you do in your life. It's about building wealth. It's not about playing the casino.
Ashleay: Absolutely. And it's always good to be reminded of the best ways to get rich, as we say, especially during the summer months when we are being called to go out to activities and things of that nature. So, to all our listeners, thank you for tuning in. If you enjoyed this episode, please feel free to share it and we will see you soon.
Sébastien: Thank you.
Ashleay: Love this podcast? Want to know more about economic news? Follow our “In Your Interest!” podcast available on all platforms, visit the Economic News page on ia.ca or follow us on social media.