Financial Resolutions for the New Year
As interest rates and the cost of goods continue to rise, it has become more difficult to manage debt payments and put food on the table. The following are Financial Resolutions that can help manage these issues:
Get Debt Under Control
Debt products like credit cards, lines of credit, and personal and payday loans carry the highest interest rates. Take control of these types of debts by setting up a plan to pay them off instead of just making minimum payments - this is key to getting off the debt treadmill. Consider the following:
Ask your creditors if lower interest rates are available
Consider balance transfers to lower-rate products
Pay more than the minimum
Match credit payments to paydays and make payments as often as you can. This will bring your balance down sooner and incur less interest
If you find that your credit obligations are more debt than your paycheque, seek out a Licensed Professional and review debt relief options such as a Consumer Proposal.
Budget Budget Budget!
Not enough can be said about setting up and maintaining a proper household budget. By regularly tracking your monthly income and expenses, you can make effective changes to reach your financial goals and facilitate a plan to get debt under control. The Financial Consumer Agency of Canada’s website has free budgeting tools and spreadsheets, most banks have budgeting tools as part of their online banking features, and several apps are available for cell phones such as Mint and Wally.
Buy In Bulk And Stock Your Pantry
As the cost of goods continues to rise, take advantage of bulk deals and case lot sales. It may take a while to build up your pantry, so take your time and take advantage of sale items whenever you can. Every time you shop, look for deals on items you use regularly and pick up one or two extra cans or jars of non-perishable food for your pantry. Buy meat when it’s on sale and buy a little extra for the freezer. If you are faced with an unexpected expense in the future, you can temporarily reduce your food budget by using your stocked pantry.
Save Every Payday
Being prepared for emergencies will help reduce your reliance on credit to manage the unexpected. Whether it’s $20 or $100, set aside part of your paycheque every payday for an emergency fund.
Start your journey to financial freedom. Book your free, no obligation consultation today to connect with one of our experienced BC/Yukon Licensed Insolvency Trustees.
