Many of us spend more time planning our next vacation than arranging our finances for the rest of the year, never mind the rest of our lives.

Decide what you want to have or accomplish – Is it university education for your kids? Travel, a retirement home, or a new car every few years? “Start with where you are today and go all the way down the road,” says Sullivan.

Bridge the divide between the two – “At this point, your budget isn’t just identifying your sources of funds and how you use them,” says Higgins. “It’s showing you how much you can or should save to meet your long-term objectives.”

Cover all the bases – “Savings and investing are the next step in your plan,” Higgins continues. “Factor in strategies to deal with debt, your retirement expectations, estate planning, taxes and insurance.”

Take the saver’s oath – “The savings rate in North America is at an historic low,” says Sullivan. “No advisor can tell you where to cut your spending. You need buy-in, commitment and a willingness to either make painful choices or change your goals.”

Protect what you’ve got – “The primary purpose of insurance is to cover the unexpected,” says Higgins. “A financial plan that assumes a steady income for the next 30 years can change dramatically if one of the income-earners dies unexpectedly. Insurance can replace lost income, pay funeral expenses and cover taxes, including probate fees and capital gains taxes.”　

Accept that life happens – “Financial planning is all about saving for what you really want and putting enough away so you can cope with life’s changes and challenges,” says Sullivan. “The more complicated or involved your life becomes, the greater the need to plan.”

Debt can be both the problem and part of the solution – “If there’s more money going out than coming in, you have to address the shortfall,” says Higgins. “Cut your ‘latte factor’ – the small amounts we all squander. See if you can free up cash by replacing expensive debt, like credit-card interest, with less expensive loans. If you have investments and debt, there may be ways to keep your investments and make your debt tax-deductible.”

Learn what others know – “There are many tax-efficient ways to save,” says Higgins. “You can open a Tax Free Savings Account – the deposits aren’t tax deductible, but the income they earn is tax-free. You can contribute to an RRSP, where the contribution is tax-deductible and the income is tax-deferred, as you pay tax on your withdrawals. The TFSA offers more flexibility if you should need the money in a few years.”