When most people think of New Years Resolutions, they tend to focus on things like eating better, working out more, and just overall living a better and healthier life. While all these things are great, we often neglect an important part of our health, that can ultimately affect every aspect of our lives: our Financial Health.
To start 2017 on the right note, here are some tips to make sure you’ve covered your bases:
1. Budgeting
Budgeting is the base for helping you get off to the right track.It will allow you to understand how your household is spending its money, where it can cutback, and where dollars can be reallocated.Budgeting can also help with the ever-important concept of paying yourself first before money is available for non-essential expenditures. Paying yourself is the idea of putting money away in savings, where your money can work for you, not for someone else.
2. Protect against unexpected life insurance hikes with an insurance review
Most Canadians hold term insurance.Term insurance is the most cost effective insurance in the short term, but after the term expires (usually in 10 or 20 years) there are large spikes in costs on renewals.A review of your current policy is a great way to re-educate yourself on what you currently hold.This will give you a chance to look at options if your needs have changed, and better understand how insurance can be structured so there are no surprise increases in costs during your lifetime.
3. Start the conversation of retirement planning
If you’re like most people, you may not know where, or how, to start this conversation.Thankfully, there are many tools out there to help with that.One resource I use with my clients is the Razor Software tool.Razor includes a specialized questionnaire that I go through with my clients to help them understand when, and how, to get started for their retirement, and how much they should consider saving for that purpose.It’s a service that I offer to all my clients at no cost, and it paints a great picture of your current situation vs. where you want to be, and can help you understand some of the risks you will need to take to help you achieve your goals.
By setting ourselves up for optimal financial health, we can alleviate some of the other stresses in our lives by allowing us some piece of mind, and helping to put us in a position where we can take care of ourselves and our loved ones should life throw us a proverbial curveball. By following these three tips, you can ensure your money is working hard for you, and cutting out any unnecessary stresses down the road that could have been preventable had we taken the time to cover our bases. Remember, “January 1st is the first blank page of a 365 page book. Write a good one.”
If you are looking to start the year off right you can reach out to the Author Chris Boyle. He is a Financial advisor who can help you get started and get closer to help you reach your financial goals in 2017 and beyond. He can be reached at 780 966 5084 or chris@oaktreews.ca.
Happy New Year!