The recent tumultuous economic climate has placed financial planning at the forefront of priorities for many Canadians as we transition into 2023. To effectively navigate this challenging landscape, it is crucial to adopt a strategic and proactive approach to managing one’s finances.  Many people consider this a resolution, but truly it’s a goal that should be priority year round, year after year, indefinitely.

Analyze expenditures.  In order to optimize financial efficiency, it is essential to conduct a thorough review and analysis of expenses. This includes identifying and eliminating unnecessary costs, such as superfluous phone plan features or frivolous daily expenditures, while concurrently comparing options to secure more cost-effective alternatives with comparable functionality.

Create a budget.  Once expense reduction opportunities have been identified, create a new budget with your available funds.  Don’t forget to allocate a portion for costs such as birthdays, gifts, eating out, spending money.  It is essential to establish clear and measurable financial goals. These may range from short-term objectives, such as paying off credit card debt, to long-term aspirations, such as saving for a significant purchase or investment or paying your mortgage down quicker.  There are tons of budget templates available online, through apps, and in excel – there’s something for everyone so there is no excuse not to do one!

Consolidate debts.  To further streamline financial management, it may be prudent to consolidate various sources of debt into a single, more manageable payment. This can be achieved through consolidating debt into a mortgage, which typically carries a lower interest rate.  It is not unusual to see debts upwards of $7000-8000 per month, reduced to $2000 per month.  The savings are astronomical, so don’t underestimate the power of consolidation (or the chaos of high interest credit cards and loans).

Look for more ways to bring in money.  Adopting the practice of paying bills promptly and curtailing impulsive spending can greatly benefit financial stability. As well, if you look closely enough there may be other feasible ways to add to your income.  If you have a spare room in your house you could host a foreign student or become a billet family for an out of town athlete.  If you have a recreational property/vacation home, you can rent it out when you aren’t using it. You can Additionally, actively seeking out opportunities to increase income through means such as seeking promotions, negotiating raises, or exploring new job opportunities can also be considered.

Be a conscious consumer.  Keep the coupons you get in the mail – a dollar saved  is a dollar saved.  Watch for sales (and don’t be sucked into buying something just because it’s on sale).  Look online for deals….the internet provides amazing access to vendors and products not always available in your local stores.  But make sure to check their warranty and return details so there are no surprises.

By following these strategies, individuals can actively take control of their financial situation and set themselves on a path to financial success in the coming year.