Another year has come to a close, and for many, it is a time to reflect on the year past and set resolutions for the year to come. While for the most part the resolutions that are made are largely reserved for the gym or introducing dietary restrictions. Comparatively, few consider their personal finances, your finances should definitely be topping that list. One of the best ways to start is by setting financial goals, whether that may be short-term long-term or somewhere in the middle, the important part is that you stick to them. Here are a few financial new years resolutions that you might actually keep.
It is essential to go into the new year with a clear idea of what you want to achieve in the next 365 days. This may include paying down some debt, purchasing that vacation home, or putting some assets back to work in the market. Whatever your goal is, setting Specific, Measurable, Achievable, Relevant, and Time-bound (SMART) goals can help you stay motivated and track your progress. setting goals using the SMART method can also help clarify what is currently important to you, as well as what is not, thus helping you allocate your resources more effectively and efficiently.
Not all debt is the same, believe it or not, good debt does exist. We have all heard the saying “it takes money to make money”. Debt that improves you and your family's life in a significant way, such as having a mortgage on a house could be considered to be a good debt. On the other hand, if you are borrowing funds to purchase a depreciating asset such as a vehicle, you're getting into some Bad Debt. In most cases, your new vehicle has already depreciated by ten percent of its overall value the second you roll it off the lot. Eliminating your bad debt should be a top priority this new year. The high cost of interest that is associated with Credit cards and other forms of consumer credit, negates your ability to grow your wealth both in the long and short term.
Meeting with a Financial advisor can help put your current financial situation into perspective, ultimately giving you the opportunity to review and update your financial plan, discuss market trends and investment opportunities, address any concerns or questions you have, and stay on track with your financial goals. So if you haven't met with your financial advisor recently, now is the time to schedule a meeting and get back on track.
Yet again whatever your resolutions are this year, take some time to reflect on what you want to accomplish financially in the coming year and make sure that a couple of financial resolutions make that list. By working with a financial advisor, setting clear and realistic goals, and creating a plan to reach them, you can take control of your financial future and start the new year off on the right foot.
- Mitchell Cathcart, Marketing Associate, Kondwelani Kalinda, Licensed Assistant & Financial Planning Associate and Grant White, Portfolio Manager at Endeavour Wealth Management with iA Private Wealth, an award-winning office as recognized by the Carson Group. Together, Endeavour Wealth Management provides comprehensive wealth management planning for business owners, professionals and individual families.
This information has been prepared by Mitchell Cathcart, Marketing associate, Kondwelani Kalinda, Licensed Assistant & Financial Planning Associate and Grant White, Portfolio Manager for iA Private Wealth and does not necessarily reflect the opinion of iA Private Wealth. The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offeror solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors. The Investment Advisor can open accounts only in the provinces in which they are registered.
A Private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. iA Private Wealth is a trademark and business name under which iA Private Wealth Inc. operates.
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