It’s hard to believe after the difficulties of the last twelve months that we’re just a few days away from waving 2020 goodbye and giving 2021 a huge welcoming hug. We can also all agree that we’ve been through the wringer, especially on the financial side. It’s safe to say that 2021 will be a recovery year for all. So, here are a few tips on how to bounce back strong and adopt some new financial habits that will serve you well for years to come:
Manage your money:
- If you’ve never managed your money using a budget, now is the time to set one up. It will help to improve your relationship with your finances and could help you get out of debt.
Think about your future:
- Consider making this the year that you set up an emergency savings account. This can be a TFSA or just a regular savings account. Start small and make it automatic so that it becomes an effortless habit.
- Review your insurance policies (life, health and property) to ensure you’ve got the right level of coverage. This is also a good time to check your beneficiaries and will to make sure these are also up to date and still reflect your wishes. If you don’t have a will, consider setting one up. It might feel morbid at first, but there’s peace of mind knowing that your affairs will be managed according to your instructions.
Invest your time into your financial knowledge:
At the beginning of the year, the Toronto Star ran an article about being “money smart.” The author suggests spending 20 minutes per week to improve your understanding of your personal finances. This includes tweaking your budget, paying bills, reading about money management and getting support from financial advisors. The great thing about improving your financial literacy is that there are so many free resources available to Canadians. And a lot of it is presented in an upbeat, entertaining way. Some good sources include You Tube, the Financial Consumer Agency of Canada and Canada Life’s Smart Path Now.