Having a Financial Plan Matters — Especially When Life Throws You a Curveball

Tim Borody, CPA, CMA, CFP, Investment Advisor, Advice First Wealth

Life has a way of surprising us - sometimes in good ways, and sometimes with unexpected costs we didn’t see coming. Recently, I met with clients who found themselves facing exactly that. They’d been doing all the right things: working hard to improve their finances, setting aside money every month for home maintenance and unexpected expenses, and steadily building up their emergency fund.

But then life happened - some major, unavoidable repairs around their house suddenly put a bigger dent in their savings than they’d planned for. When this happens, the question many people face is, “How do I pay for this? Should I use my long-term savings, like my TFSA, or should I borrow the money and finance the cost?”

It’s the same question that comes up often when people need to buy a new vehicle: “Do I pay cash, or do I finance?”

These choices can feel overwhelming if you’re trying to decide in isolation. But they don’t have to be. The real answer should always come back to your plan.

Without a plan, it’s easy to get stuck focusing only on the short-term decision “Can I afford this monthly payment?” or “Should I use my savings now?”, without thinking through the ripple effects. What does this choice do to your long-term savings goals? How does it affect your retirement plans, your cash flow, or the security you’ve worked so hard to build?

In the case of my clients, we looked at how different options would fit into their bigger picture. Could they free up enough cash flow to finance the repairs responsibly? Would it make sense to draw from their TFSA and have a clear plan to replenish it afterward? What would happen to their other goals if they did?

The same goes for bigger purchases like vehicles. Using savings to pay cash can make sense but only if you treat it like borrowing from yourself. If you were comfortable making a $500 monthly car payment, redirecting that same $500 back into your savings after the purchase is how you “pay yourself back.” Otherwise, you risk falling behind on your long-term goals without realizing it.

Every decision, big or small, should connect back to your plan. That’s why working with an advisor - and having a plan that truly reflects your situation - is so important. Everyone’s life is different. Everyone’s resources and goals are unique. A good plan helps you see how today’s decisions affect tomorrow’s possibilities.

If you’re facing a big decision or just want to make sure your plan still fits your life today, let’s talk. Together, we’ll look at your whole picture - and make sure that when life throws you a curveball, you’re ready for it.

Don’t have a clear financial plan? Need to review the plan you have?
Contact us today - we’re here to help you make choices that keep your future on track.

Next
Next

What Will You Pass On? Rethinking Capital for the Next Generation