Are you on track with your financial goals for the new year?
It’s the time of year where you think back to the New Year’s resolution you made and decide if you’re going to stick with it.
Was getting your finances in order part of your to-do list for this year? Are you still on track? Or, are you still trying to figure out what “getting your finances in order” means?
It’s never too late to give your financial plan some much needed attention.
It’s time to revisit your financial goals for the new year and consider what you can do now that your future self might thank you for later.
Set up regular contributions
This may have gone through your mind hundreds of times, but you’ve never actually set up regular contributions – until now.
The power of compound interest is a wonderful thing. Automatic contributions save you the trouble of putting away money every paycheque – money is put away for you without you having to think about it. Where should you contribute that money to? A Registered Retirement Savings Plan (RRSP) steps up your financial game. You’ll receive a tax receipt for the contribution amount which can offset your income when filing your annual income taxes. So, it’s helpful now and later as you pay into your savings plan for your future and you get an immediate tax break.
Alternatively, you may have student loan debt, credit card debt, payday loans or car payments that need taking care of. Instead of randomly making lump sum payments throughout the year, setting up regular contributions will reduce interest on your principal with every payment.
With this handy tool, you can compare paying off debt with contributing to an RRSP.
However much or little you decide to invest, future you will be grateful to present you.
It’s never too late to give your financial plan some much needed attention.Opens a new website in a new window
Fuel your goals
Whatever your goals – like creating an emergency fund for things like car and home repairs, or like taking a dream vacation one day – a Tax-Free Savings Account (TFSA) can help. TFSAs can also be a sensible option when you consider saving for retirement. There are no tax consequences for taking money out when you reach your goal, making it a wise choice for any savings goal. You can also set up regular contributions to a TFSA to continuously increase the amount that is gaining interest in your account.
Curious about the difference between a TFSA and an RRSP? You can read more about it here.
Schedule a financial check-up
This is the year you said you would get your finances in order. A financial check-up is long overdue. Ask yourself, what are my goals? How am I saving for them? Did I max out my TFSA and/or RRSP contributions this year?
These questions can seem overwhelming, but they shouldn’t be. When you don’t understand your finances, you may not feel in charge. If having a financial plan was part of your to-do list for this year, why not talk to someone who can help make these questions seem less ominous? Here’s how to choose a financial security advisor who will help you with your financial goals and get answers to questions you’ve always needed the answers to.
This year, do something nice for your finances. Consider these ideas when you revisit your financial goals for the new year.
The information provided is based on current laws, regulations and other rules applicable to Canadian residents. It is accurate to the best of our knowledge as of the date of publication. Rules and their interpretation may change, affecting the accuracy of the information. The information provided is general in nature, and should not be relied upon as a substitute for advice in any specific situation. For specific situations, advice should be obtained from the appropriate legal, accounting, tax or other professional advisors.