Monthly tips for enhancing your financial well-being
Small changes can lead to big results
I’m that person who makes resolutions each year that improve my financial situation. However, how do you make changes to your financial situation today and where do you begin when so much feels beyond our control? Inflation remains high, debt levels are soaring, stock markets remain volatile and the list goes on.
I believe the best way to combat a challenging situation is by taking charge now and setting myself up for a stronger financial year in 2023.
Here’s a list of monthly suggestions you can tackle over the rest of this year to help you take control of your financial situation, give yourself a little financial wiggle room and mentally get in the game.
I understand you might decide to try things in a different order that makes most sense to you. It’s important that you take control, do something and recognize that small changes can lead to big results that help improve your financial situation.
February
Assess your debt. Holiday and other bills may be rolling in and debt could have piled up during the past year. If you’re able to begin paying it down, consider paying off your most expensive debt first – the one with the highest interest rate. While it isn’t always easy, putting away your credit cards can help begin the financial detoxification process.
Also, don’t forget the March 1 registered retirement savings plan (RRSP) deadline! Before putting money into your RRSP, make sure to check your contribution limit for the year.
March
Examine other elements of your financial plan. Explore insurance options, estate planning or begin tucking even a few dollars away for a rainy day (do your best as you may be paying down debt from the previous month).
April
The tax deadline is right around the corner. While it’s a little late in the year to get too strategic about this, take time to ensure you are getting the biggest bang for your tax buck.
You can also start setting yourself up for success next year:
- Learn about tax-saving opportunities especially tax credits and deductions you may be eligible to claim.
- Ensure you understand the tax consequences of money received from government programs.
- Consider seeking professional advice if you have difficulty paying a tax liability;
don't ignore it.
May
Make a list of your family’s discretionary spending. Discretionary spending can be thought of as “wants” that a household can live without if necessary. Examples include having the latest smartphone, eating at restaurants or attending entertainment events. Monitor and manage your expenses, especially recurring costs like online subscriptions and your phone/internet plan.
June
You can build financial comfort and resilience by paying yourself first and having money come directly out of your account to pay off debt. You could also plow that money into an emergency fund, investment portfolio or other savings options.
For example, if you haven’t already set up a Tax-Free Savings Account (TFSA), consider doing so. A TFSA is a registered savings account that enables your contributions, interest earned and dividends to grow tax free. And, you don’t pay taxes on the funds you withdraw from your TFSA. Learn more.
July
Focus on ensuring your bills are paid on time and building an emergency fund that consists of three to six months of living expenses. When you draw on these funds, develop the discipline to top them up again as soon as you are able.
August
Appraise your life, disability and critical illness insurance coverage that can help reimburse you for medical costs if you are injured, develop a serious illness or provide funds for your loved ones if you pass away. Not everyone needs that insurance however, everyone needs to ask, “What would happen to my family if something happened to me?”. How you answer that question will dictate the type of insurance you should explore.
Start by understanding the coverage you have through your employer and learn about the disability and survivor benefits provided by your HOOPP pension.
September
Analyze your auto, home and tenant insurance costs, coverage and options to ensure they are right for your current situation. You could also obtain additional quotes when your coverage is about to expire to try and find lower premiums.
October
Create or take a deep look at your estate plan. An important part of that involves reviewing and updating the beneficiaries in your HOOPP pension, RRSPs and other registered accounts.
Preparing and keeping a will up to date through your legal advisor is also critical. My father passed away at age 36 from a heart attack. He had a plan in place and while it clearly didn’t replace him, getting through all the financial details from his passing was easier than it would have been without the will.
November
Consider learning a new skill that could lead to personal or career growth. That can also help you develop a growth mindset, which opens the door to many new possibilities.
December
Review and reflect on the financial aspects of your year. Start thinking about what financial activities you did well and can repeat, and what others you can improve or add
in the upcoming year.
These are just a few examples of things you could be doing to take more control of your finances. While there isn’t a single approach that works for everyone, by planning and staying connected to your finances, you can put yourself in a better position to make positive changes that fit your personal circumstances and help improve your financial situation.
Pattie Lovett-Reid is a highly respected Canadian financial guru. As CTV News' former Chief Financial Commentator, Lovett-Reid is experienced in coaching Canadians on how to save money, stretch their income and get the biggest bang for their hard-earned bucks.
Follow Pattie Lovett-Reid on LinkedIn
Pattie Lovett-Reid is a highly respected Canadian financial guru. As CTV News' former Chief Financial Commentator, Lovett-Reid is experienced in coaching Canadians on how to save money, stretch their income and get the biggest bang for their hard-earned bucks.
Follow Pattie Lovett-Reid on LinkedIn
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Monthly tips for enhancing your financial well-being
This document provides a simplified overview of HOOPP's benefits based on the terms of the HOOPP Plan Text at the time of publication. From time to time, HOOPP may amend the HOOPP Plan Text. In cases where the information provided in this document differs from that contained in the HOOPP Plan Text, the HOOPP Plan Text will govern. More details, including the full HOOPP Plan Text and a complete description of the Plan and its benefits, can be found on hoopp.com.
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