Resolutions

At the beginning of each year, many people make resolutions to lose weight, exercise and numerous other resolutions that last for a short time.  This year, I want everyone to look at making a financial resolution you can keep.

First, set realistic goals for yourself and make a plan to reach those goals.  It is nice to say you want to buy a house in 5 years, but look at the larger picture.  If you are going to need to save $20,000 for a down payment, is it possible to save $4,000 a year.  Maybe, maybe not, it depends on your finances.  If this is your goal and you can achieve it – great!  Just set up a savings account and put $350 in it each month towards a house.  If this is not possible, then look at what you can afford and start saving for it now.

Second, make a budget and stick to it.  What is a budget?  It is a list of what you earn and what you can afford to spend each month.  Make sure you include all of your expenses, even your trips for coffee and out for lunch.  Many people don’t keep track of the “small cash items” and are surprised to find discover how much they really spend.  Look at ways to decrease your expenses to increase savings.  Do you really need to go out for coffee twice a day and buy your lunch every day if you can just bring your own?

Finally, make a plan to pay off your debts.  If after you have completed your budget you realize you can’t realistically pay off your debts, contact us for a review of your financial situation.  We have a debt options calculator that can help you look at your various options.

If you find you need to file either a consumer proposal or bankruptcy, call us at 310-PLAN or email me and we can review your situation in detail.