Financial Planning 101 Chart – How Much Money to Put Where?
September 2026
Unless you have more money than you need, care is required when saving and investing. The basic concepts are easy to understand. I call the following chart “Financial Planning 101.” It is my opinion of where your money should be placed based on when you will need it. Most professional financial planners will follow this basic outline, although the time frames may differ slightly. Please look at my other articles under the Tax and Financial Planning tab for more.
| Emergency Fund | ||
|---|---|---|
| Being Prepared 3–6 months’ living expenses |
Short-term cashable savings, e.g., cashable GICs (guaranteed investment certificates) and high-interest savings accounts (HISA) | Risk being managed: Not being able to reach your money quickly, or losing part of it |
| Short-Term Needs | ||
| Spending Money Needed within 5–7 years |
Fixed income securities (i.e., interest-paying investments), e.g., bonds, GICs and term deposits, with laddered (staggered) maturities as needed, typically spread over five years | Risk being managed: A market decline shortly before the money is needed |
| Long-Term Needs | ||
| Long-term Goals and Needs e.g., education, retirement, estate |
A mix of fixed income securities and equities (shares), based on income, net worth, knowledge, goals, time horizon and risk tolerance (“sleep factor”) | Risk being managed: Inflation and outliving your money. Market swings are the trade-off |
Blair Corkum, CPA, CA, R.F.P., CFP, CFDS, CLU, CHS holds his Chartered Professional Accountant, Chartered Accountant, Registered Financial Planner, Chartered Financial Divorce Specialist as well as several other financial planning related designations. Blair offers hourly based fee-only personal financial planning, holds no investment or insurance licenses, and receives no commissions or referral fees. This publication should not be construed as legal or investment advice. It is neither a definitive analysis of the law nor a substitute for professional advice which you should obtain before acting on information in this article. Information may change as a result of legislation or regulations issued after this article was written.©Blair Corkum