The new year is a time to reflect and improve on ourselves. Many Canadians choose to make new year resolutions and financial goals are usually at the top of the list.
These tips will help you set (and achieve) successful financial resolutions in 2018.
Six financial resolutions to make this year:
1. Improve your financial literacy
The Canadian Financial Literacy Database helps you build an understanding of personal finance. Even if you don’t manage your own money, a basic understanding of terminology helps you better communicate your goals with a financial advisor.
2. Put the brakes on a big purchase
If you’re considering replacing an old car this year ask yourself if it can wait. If your car is paid off, the maintenance cost is likely less than payments on a new vehicle. You can use these savings to get ahead on the purchase of your dream car in the future. These principles can be applied to other big expenses like kitchen appliances or home renovations.
3. Practice patience with your purchases
To prevent overspending and impulse buying, wait a couple of weeks before making unnecessary purchases. If you wait long enough you might forget about it all together. Unfortunately, some purchases can’t be avoided. For the bigger necessary purchases, give yourself time to shop around and wait for a good deal.
4. Find leaks in your budget
Fees, impulse buying and overage charges on internet or cell phone plans are all examples of budget leaks. To fix these leaks, spend a month tracking your spending. This helps you find money you didn’t even realize was being spent. Patching up your budget leaks can help save $10s, $100s, or even $1000s this year!
5. Invest in your career
Investing in your primary source of income is a terrific way to earn more money this year. You can use Glassdoor to see if you’re getting paid fairly based on your experience and job title. You can use this information to ask for a raise or leverage it to get a better offer in a new job. To advance your career, you can also do a Google search for certificates or other learning opportunities in your industry.
6. Build an emergency fund
If an emergency happened in your life, would you need to take on debt? One of the first steps towards financial independence is protecting yourself against unexpected expenses such as car repairs, home renovations and changes in employment. According to the Financial Post, only a quarter of Canadians have a rainy-day fund.
Bring a new attitude to your money with these financial resolutions for 2018. These tips can make you smarter about your money, save more and live happier. Get in touch to find out how to make your 2018 financial goals come true.
*This content was originally created by Manulife Securities for information purposes only. It has been distributed for advisor publication.*