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It's Your Money  

Start the new year right when it comes to your finances

Financial resolutions

The start of a new year is a perfect time to set financial goals and create a plan to achieve them.

Whether you want to save for a down payment on a house, pay off credit card debt or start investing for retirement, a little planning can go a long way in helping you reach your goals.

Here are a few steps you can take to get your finances in order and start the new year off right:

1. Assess your current financial situation. Take a look at your income, expenses, and debts. Make a list of all of your fixed expenses, such as rent or mortgage payments, car payments, and insurance, as well as your variable expenses, such as groceries and entertainment. Look for areas where you can cut back, such as dining out or subscription services.

2. Set specific, measurable goals. Instead of simply saying you want to save more money, set a specific goal, such as saving $10,000 for a down payment on a house. Be sure to set a deadline for achieving your goal and break it down into smaller, more manageable steps.

3. Create a budget. Once you have a good understanding of your income and expenses, create a budget that will help you reach your financial goals. Be sure to include both fixed and variable expenses, as well as a "miscellaneous" category for unexpected expenses. Make sure your budget is realistic and that you are able to stick to it.

4. Make a plan to pay off debt. If you have credit card debt or other outstanding loans, make a plan to pay them off as quickly as possible. Consider consolidating your debt into one low-interest loan or transferring your balance to a credit card with a lower interest rate. Be sure to pay down the debt with the highest interest rates first.

5. Start saving for retirement. Even if you're not yet ready to retire, it's never too early to start saving for your golden years. Consider opening an RRSP account and make regular contributions. But be sure to take advantage of any employer matching contributions first.

6. Review your insurance coverage. Make sure you have the right insurance coverage for your needs. Review your health, homeowners, and auto insurance policies to make sure you have enough coverage and that you're not paying for unnecessary coverage.

7. Seek professional advice. If you're not sure where to start or need help creating a financial plan, consider seeking professional advice from a certified financial planner. He or she can help you create a plan tailored to your specific needs and guide you through the process of achieving your financial goals.

Starting the new year off right with financial planning can help you achieve your financial goals and give you peace of mind. You can take control of your finances and set yourself up for financial success in the coming year.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.



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About the Author

Brett has worked in the financial advice industry for over 15 years and is designated as a chartered investment manager(CIM) and certified financial planner (CFP).

In 2014, Brett was appointed to the board of directors of FP Canada (the national professional body for financial planning) and spent seven years on the board, including his final two as board chair. More recently, he was appointed to the Financial Planning Standards Board (FPSB), which is the international professional body for this industry with a three-year term beginning in April 2023.

Brett has been writing a weekly financial planning column since 2012 and provides his readers with easy-to-understand explanations of the complex financial challenges that they face in every stage of life.

Enhancing the financial literacy of Canadian consumers is a top priority of Brett’s and his ongoing efforts as a finance writer and on the regulatory side through the national and global boards focus on this initiative.   

Please let Brett know if you have any topics that you’d like him to cover in future columns or if you’d like a referral to a qualified CFP professional in your area by emailing him at [email protected].

 



The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet does not warrant the contents.

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