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By Bromwich+Smith Staff | 854 words | Reading Time: 4 minutes and 16 seconds | Date: 2022/10/06
As the days go by, and the weather starts dropping we can’t help but think of the winter days ahead of us. Some of us are holding on to the crisp fall days choosing to ignore the upcoming spending season while others are ready to dive into the excitement of holiday spending. We choose to reflect on the past year and the financial tips we are thankful for.
Create a budget
We say it every chance we have. Create a budget! It is something that many Canadians ignore, and can be easiest tool to set you up for financial success. Start with your income, by knowing how much money you have to spend can help you allocate towards your expenses. Every household will have financial obligations, and no two families will have the same set expenses. Consider all your costs and try to plan any extras. A budget isn’t set in stone, and will need adjustments based on life changes like loss of income, marriage separation, inheritance or bonus income.
Start an emergency fund
An emergency fund is another financial tip that Bromwich+Smith loves to share. We know that life is full of unexpected events, and often those are the ones that can derail your financial security. The cost of a car transmission, medical bills, funeral for a loved one, broken down appliance etc. can disrupt any household. If you do not have an emergency fund, you will likely find yourself putting the unexpected cost on a credit card. Without immediate additional income to pay it off, you will add months of interest and extra payments. Many Canadians, who are already in financial distress, may find themselves looking to other options, including payday or other high interest loans. Again, although this will give you immediate relief, you will find the months of additional payments, and high interest may hinder your financial security. These loans often take years to pay off and cost more than the original loan amount.
This is a great time to look at your financial situation. Are you feeling stressed about money, do you find yourself juggling which credit card to pay your bills with or which ones to skip paying this month? Are you starting to get phone calls from creditors looking for payment? Or have you found yourself in a position where you have been able to pay off your debt and have extra income and not sure where to invest it or save it? If you are finding that you are struggling financially know that there are options available. You may consider looking at these options before they snowball into something more than you can handle. Knowing your financial state will help you know what opportunities you have available. You can use our debt advisor tool.
For those who have been able to put money aside, it’s a good time to assess where the extra funds have been allocated. Do you have a strong emergency fund set up? Have you started a savings account for your retirement? Having one general savings account isn’t enough anymore. By separating out and putting money towards each goal, will help you achieve your financial goals.
Winterize your home and your savings
You may notice throughout the year that there are specific expenses that come up every season. By winterizing your home, you will be able to check for any areas that may become a problem for you this season. Is your furnace slow to turn on or making noises that you don’t remember? Consider having a professional inspect it now, before you wake up one chilly morning with no heat. While the weather still allows, clear out the falling leaves from your gutters before they start blocking the drains causing a leak or potential flood.
December tends to bring extra bills, with teacher gifts, Holiday gatherings, Work functions, family gatherings and more. Your savings will likely take a hit in the upcoming months, so by padding those savings now you may be able to save yourself from some added interest and stress in the upcoming months.
Plan for the future
While we often suggest planning ahead for long term financial goals, this time we suggest planning for the near future. The past few years have been difficult for so many Canadians. We have struggled financially, many of us have lost jobs, and added debt and financial stress. Make a short-term financial goal for yourself and reward yourself. This can be with something as simple as going to that new ice cream store you have wanted to check out for months, a new item for your closet you haven’t justified purchasing, or even a trip to visit family. By rewarding yourself for achieving your goals, will help your mental health, and help you want to set more goals in the future.
No matter what your financial story is, Bromwich+Smith has a number of 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, or request a call back at contact us page. We want to see you flourish!