Setting Financial Resolutions for 2024
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By Bromwich+Smith Staff | 888 words | Reading Time: 4 minutes, 26 Seconds | Date: 2024/01/24
January always brings on a surge of emotions. For some it’s the relief that the holidays are over, and life can get back to normal. Others are excited for the new year, and the unknown potential. For another group, January brings on sadness that the festive season is over and fear and concern over bills. This is why the third Monday of January has sometimes been called Blue Monday, which actually started as a travel company’s advertising campaign. One simple way to reduce the stress and disappointment of 2023 ending is to set financial resolutions for 2024.
It is important to set goals that align with your situation, and that they are measurable and adaptable. A goal is a moveable target - as your life changes it is important to adapt. These objectives will create a roadmap to assist you in achieving your financial intentions. Financial goals require some work both upfront and throughout, so you will need to think about what you want to achieve, and what you need to do to achieve it. If something changes in your life like a job loss, or change in family structure you will need to set some time aside to adjust your goal. Maybe you need to shift your budget, or perhaps you will be able to achieve your goal faster than expected and can create a new goal.
One important financial goal is to take control of debt management. Debt is normal for many Canadians. Some debt, like your mortgage is considered good debt, but many of us carry additional debt from bank loans, credit cards or other loans like for car purchases. Make a resolution this year to pay off your debt. Add up what you owe and create a plan on how you can reduce it this upcoming year. Maybe you can cut down expenses, maybe you are able to add to your income. For some, debt management requires a bigger resource, like the help of a Licensed Insolvency Trustee (LIT) like Bromwich+Smith. Calling an LIT for a free consultation is a great way to start 2024, as they can help you understand your debt and your options. You may be surprised to learn that your debt is manageable on your own and they can provide you with some tips to achieve that goal. If you need a little more help, a debt relief program, a Consumer Proposal, or even Bankruptcy could be the best option. An LIT will be able to offer you options so that you can get back on track and take control of your financial story again.
Have you ever thought about what it would take to derail you from being able to pay your bills this month? An unexpected expense like a car repair, or a change to your income like reduced hours? Now that you have that in mind, plan for it. If you’re worried about your car breaking down, create a savings account specifically for car repairs. If it’s possible that your income could be reduced, consider how much you need set aside to avoid putting day to day expenses on credit cards?
Plan for Retirement
Think about your retirement plan, if you’re like most of us, it’s coming faster than you think! Do you have savings set aside to secure retirement at your target age? Look into your RRSP program and see how to make the most out of your employer matching your contributions. Speaking to a financial advisor will help you understand how much you need to save based on the lifestyle you plan to maintain.
Review and Adjust
Every plan is based on predictions, and those are almost never right! There are always going to be bumps in the road even with the best thought out plan. Adjust your plan as these changes come up, it is the best way to ensure you are still on the road to success. Review your budget every month as a great first step. Just a few additional expenses each month can add up and turn into a bigger roadblock in the future. When unexpected expenses come up or your budget hasn’t quite worked out take a step back and review this opportunity and adjust it for future months. Perhaps your child has taken on an extracurricular activity that is costing more than anticipated. How can you recoup some of that overage each month? Maybe you need to cut back on another area, or you need to look at how to add to your income.
Creating a financial goal for 2024 is unique to you and your personal situation. Take an inventory of what is important to you and where you want to be this time next year. Take the time to review and adjust as needed, and do not be afraid to ask for help when needed. You do not need to manage your financial situation alone, an LIT can be a great resource.
Bromwich+Smith has several debt relief strategies to help you regain control of your finances and get your life back on track. Reach out today for a free, confidential, no obligation consultation. Bromwich+Smith’s Debt Relief Specialists are available by phone at 1-855-884-9243, Live Chat or you can request a call back at contact us page. We want to see you flourish!