Every year, there are a number of polls and studies, and lots of talk about New Year's resolutions. Generally, it reveals that the majority of us aspire to feel physically fit and financially secure. One poll said that of the 69% of Canadians who set New Year's resolutions, 32% of those resolutions were about spending less, saving more and paying down debt.
This is good news but we also know that many times we don't follow through on what we say we’re going to do.
So how can we make resolutions and keep them?
Develop a plan - many times goals fail because we have a wish or desire to achieve them but no action steps to follow on how to do it.
Try these tips!
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Take stock of where you are right now. Document how much money you have coming in, and how much is going out.
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Track all your spending for at least a month so you can see where your money is going. This can be difficult as many of us tend to pay our bills then ‘spend what’s left’ or worse use a credit card to spend what we don’t have! There are many apps and tools to help you with this.
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Armed with this information you’re now ready to develop your plan to carry out your resolution.
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If your resolution is to pay down debt - look to pay down the debts quickest that have the highest interest rates.
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If your resolution is to save more, then “pay yourself first”. Set up an automatic debit into a savings account so that it is like a monthly bill.
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Thinking about having setting up an emergency fund. Don’t touch it unless it is an emergency (furnace, car repair, etc.) and your ‘Plan’ will have a good chance to succeed!
You’ll find that you may be able to cut costs in certain areas like entertainment or shopping, but you don’t have to cut out all the fun. Simply plan for how much you should realistically be spending in each area and stick to it.
At Saven Financial, we’re passionate about helping people save. Use these tips to kick start your New Year’s Resolution and you’ll be on your way to achieving your financial goals.