Short-Term Financial Planning - Why ‘Figuring It Out Later’ Costs More Than You Think
- Anthony Dumas
- Apr 14
- 2 min read
When people think about financial planning, they often picture retirement, investments, and long-term savings. But the reality is that many Canadians face urgent, short-term financial decisions — and those decisions can be just as important.
Whether it’s buying a car, planning a wedding, funding a parental leave, or making a career change, short-term goals demand clear, timely financial planning. Without it, you risk overspending, accumulating unnecessary debt, and delaying other important priorities.
Case Study: The Cost of Impulse Decisions
A client approached me three months after purchasing a new SUV. It was a celebratory purchase after a work promotion, financed at 7.5% over six years. She had a solid salary and assumed the payments would fit into her budget. What she didn’t consider was:
Her rising daycare costs
Planned maternity leave in 12 months
Upcoming home maintenance expenses
The result: within three months, she was carrying $6,000 on a credit card and had to pause her RRSP contributions.
Had she consulted an advisor first, we would have:
Modeled the impact of the new payment
Factored in reduced income during leave
Explored lower-cost or shorter-term vehicle options
Kept her financial goals intact
Why People Skip Short-Term Planning
They think it’s “not a big enough decision” to get help
They assume it’ll work out later
They don’t realize how one expense ripples into others
Consequences of Going Solo:
Missed budget adjustments that lead to debt
Misaligned short- and long-term goals
Financial stress from over-committing
The Value of a Financial Advisor:
Objective view of how short-term decisions affect long-term goals
Cash flow modeling before making the decision
Strategies for preserving savings and managing risk
Short-term plans deserve the same discipline as long-term ones — especially when the cost of getting them wrong is immediate and painful.
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