By: Rodney Zawalykut , Enhance Equity Management Inc.
Make this your year and unlock your financial potential! It’s that time of year when your best laid plans and New Years resolutions start to fade to the background as life becomes…well…busy. It starts with having a plan and creating good habits, breaking down your plan into manageable pieces. Sure, there’s the classic resolution to “save more money,” but there are several other resolutions you can make in order to improve your financial health and security. Here are five financial resolutions to keep in 2023:
1. Get Financially Organized in 2023 – Start the new year off right by getting your finances organized.
Create a budget and track your expenses.
Set up a filing system for important documents, like tax returns and investment statements.
Think about what you want to achieve, how they relate to your financial goals.
Finally, zoom out and review. Go through your plan one item at a time and ask yourself the following: When was the last time you looked at it, and how often do you review it? How are you going to track your progress and what changes you need to make?
2. Protect Your Estate – There is a misconception that an estate plan is strictly reserved for the ultra wealthy. Simply having a will is not an estate plan. An estate plan ensures the efficient distribution of your assets and maximizes the value of your estate.
The first step includes having a will and other legal documents in place to protect your assets and provide for your loved ones in the event of your death or disability. However, there is so much more involved, consider an initial free estate planning consultation with us as a next step.
3. Create an Emergency Fund – Unexpected expenses, such as medical bills and home repairs, can put a strain on your finances. Create an emergency fund to prepare for the unexpected. Consider setting aside a certain amount each month to build your emergency fund.
4. Prioritize Physical Fitness – Making physical fitness a financial resolution can have a positive impact on your finances. Exercise can reduce stress, which can help you make better financial decisions. Incorporating physical activity into your budget, such as signing up for a gym membership or investing in home workout equipment, can help you stay healthy and save money in the long run.
5. Review your Debt – The top two concerns for Canadians is inflation and rising interest rates. As interest rates continue to rise, the cost of borrowing also continues to increase. Consider paying down your highest interest debt first and develop a plan for debt that will need to be renewed at higher interest rates over the next couple of years. Create a debt repayment plan and stick to it.
3 top tips to help you keep your financial resolutions in 2023
1. Break Your Financial Goals Down into Smaller Goals – Breaking down your financial goals into smaller, achievable goals can help you stay motivated and on track. For example, if your goal is to save $10,000, break that goal down into monthly or weekly targets. This will help ensure that you are making progress towards your goal.
2. Stacking habits. Stacking happens when you add new activities to existing good habits. Try adding financial tasks at the beginning or end of your favorite things.
3. Reward Yourself for Reaching Your Goals – Rewarding yourself for reaching your financial goals can help you stay motivated. Set milestones for yourself and when you reach them, reward yourself with something small, like a movie night or a massage. This will help you stay focused and motivated to reach your goals.
These five financial resolutions can help you build wealth and security in 2023. Start the new year off right by getting organized, making estate planning a priority, creating an emergency fund, reducing debt and staying physically active. With a bit of planning, discipline and creating consistent habits, you can make 2023 your most financially successful year yet!