The start of the New Year is the time when millions of Canadians begin to assess their life’s progress and set goals for the coming 12 months ahead.
Economic objectives are a popular choice for New Years’ resolutions, as they provide a tangible benefit and, when effective, they can lead to more freedom and comfort.
It’s important to focus on New Year’s resolutions that will benefit you 10, 15 and even 20 years down the line. Let’s look at the ideal financial New Years’ resolutions for Canadians to consider as they head into the New Year!
Make Sure You’re Paid First
Most people prioritize spending first and will then save anything that’s left within their accounts at the end of the month. But the most effective financial planners will prioritize saving and then spending the amount leftover after their savings have been made.
There are a number of financial instruments that can help boost your savings levels. You might, for example, place a specific amount each month into a TFSA or an RRSP until the contribution level is maxed out for the year.
With so many Canadians now headed towards retirement with long-term mortgages still to be paid off, this type of forward thinking can reduce debt in your 50s and 60s.
Consider Your Insurance Options
Like savings, insurance is a product that will help protect you and your family in future. The insurance market in Canada has become incredibly competitive in the last decade, and Canadians can now buy life insurance at more affordable rates than they could in recent years but make sure you do your homework so you can pick the best option for your future.
Explore Additional Sources of Income
As you gain more resolve to improve your financial standing, you might consider additional sources of income that could drive you forward in meeting your objectives. For homeowners, an option might include renting a room within their property, or you might wish to join the millions of Canadians now working part-time hours in addition to their 9-to-5 office job. However, remember to notify all of your payroll departments of the additional income so they can adjust your income tax deductions accordingly or you could be left with a sum sum owing to CRA come tax season.
Reduce Your Costs
January is a great time to begin analyzing your month-to-month costs and choosing which of the monthly debts you could do without this coming year.
For example, millions of Canadians are ditching their cable television package and turning to online options for their programming, in the process saving close to $100 per month. Further cost-savings could include switching to public transit for that ride to work each day. Additionally you may surprise yourself at how much money you can save by simply making food at home instead of going out to eat for lunch. If you pay your own utility bills something as simple as remembering to unplug all of your chargers and small appliances when you are not using them (as they draw power even when they are not being used) or keeping your heat 2 degrees lower then you would normally saves you money and is also good for the environment.
By focusing on your future and realizing the potential for financial success available to you, you can bring stability and opportunity through working towards your financial goals in 2015. Speaking with financial specialists who can analyze your personal financials is a great way to begin this process!