The start of a new year is when many of us ask ourselves what lies ahead personally, professionally and financially. It is common to lose sight of your New Year goals and resolutions after January and get off track. Unfortunately, the RaeLipskie Partnership can’t help you get to the gym every morning — but we do have some basic tips for keeping your financial goals on track for the next eleven months.
The first and most obvious saving tip is to budget your money. Maintaining a budget will keep you on track in meeting your goals and prevent you from spending carelessly. We recommend you start by tracking your spending for a few weeks to see where your money goes, helping you to create a budget that works for you. Your 2019 spending can also provide a guide and you might even spot some spending from last year that you can cut out this year. Once you’ve tracked your spending for at least a month, write down your recurring fixed expenses, such as your mortgage or rent payment, utilities, etc.
Next, consider the “this year-only” expenses that lie ahead, noting their costs and when you’ll need the money for them. An example of this type of expense would be remaining tuition payments or travel plans.
Numerous free or low cost apps are available to assist and some banks provide worthwhile tracking systems that can help.
Fund Your Retirement
Simply put, the earlier you start saving for retirement, the more your money will grow over time, according to CNN’s guide to retirement.
In Canada, the majority of working people over the age of 18 are required to contribute to the Canada Pension Plan until the age of 70. But this isn’t enough to live comfortably through retirement, making your own investments in your future a must. Turn to a financial advisor for a plan that makes sense for you now — and is one you can stick to! The sooner you start, even if it’s just with a modest monthly amount, the easier it is for saving to become a habit.
Set-up an appointment (or two) with your advisor throughout the year to review your asset allocation to see how your investments are currently balanced. What percentage are in stocks? Bonds? Cash? Are they in line with your goals and risk profile?
While you are giving yourself a midyear checkup, you should also check your beneficiaries with your advisor. That means looking at all your retirement plans and life insurance policies to make sure the beneficiaries are updated and correct.
If you’re a client, contact your advisor and let them know about your financial goals. If you want to learn more about working with us for financial planning or creating an investment portfolio, contact us.