There is still time to end 2016 on a strong financial note. Tackle these ‘must-do’ activities.
1. Increase your bi-weekly contributions to your RRSP by $20. That’s the equivalent of two lunches and it adds up to just over $500 per year. If you keep this up and earn a 7% rate of return compounded for 25 years it will equate to $19,000 in value.
2. Measure your net worth growth in 2016 by comparing it to 2015. Your net worth statement is a list of the value of all of your assets minus all of your liabilities. The amount that’s left over is your net worth and the goal is to grow it each year. How did you do compared to 2015? What went right and what went wrong? For couples, this is a must read to grow your net worth together.
Download our Sample Net Worth Comparison Tool to see how to calculate your net worth
3. Identify up to three financial goals (all of which should improve your net worth) that are achievable in 2017. Any more than three and it will be hard to achieve. Make them specific and display them in a place you see each day like your bathroom mirror or on the refrigerator. Examples could be to find a new job that pays more, to pay down your line of credit by $10,000, to start saving for your child’s education using an RESP or to stop fighting about money with your partner.
4. Together, with your financial dream team, pick a strategy to achieve your 2017 goals. Determine if you need to talk to a money coach or financial planner, sit down with your investment advisor, mortgage broker, insurance agent, lawyer, accountant, or lenders. Practical strategies could include going on a fiscal diet, learning how to invest well, budgeting basics or navigating difficult financial conversations with your love.
Don’t forget that it’s important to celebrate your financial victories, large or small, so that you’ve got momentum and motivation for the New Year.