With 2018 almost upon us, now is the perfect time to embrace a seemingly common trend; create your New Year resolutions. Each year, countless Canadians always pledge to do better in all aspects of their lives, money being one of them. For instance, last year, approximately 47% Canadians made financial New Year resolutions for 2018.
Research also shows that individuals who make resolutions are more likely to accomplish their goals than those who don’t. However, the best way to make your New Year’s financial resolutions is to make sure that they are more specific. If you intend to get your financial life in order in 2019, here are some of the specific things that you will have to do to get there faster.
Create a Budget and Stick to It
Only 40% of Canadian households follow a budget on a regular basis which is surprising given that budgeting is the most effective way of getting your finances on the right track. Budgeting helps you to track your spending and avoid unexpected financial trouble in the future. If you haven’t created a budget, make 2019 the year that you get into the habit of budgeting.
Keep in mind that your household budget doesn’t have to be fancy. All you have to do is list your monthly expenses and compare what you are spending with what you are earning and see if there is something left for saving. If there is, then you are good to go, but if there isn’t, you will have to adjust your budget to match your income.
Pay Off High-Interest Credit Card Balances
With the average Canadian household credit card balance escalating to approximately $8,500 per household and an average credit card interest rate of 14%, financial experts say that paying off your credit card debt should be one of your top financial resolutions for 2019. It doesn’t matter how you will accomplish this task, but you have to do everything possible to ensure that the debt is gone.
If you have several other loans, then you should consider debt consolidation in Montreal to help you get out of the high-interest credit card debt. What is even more worrying is the fact that the government is expected to hike the interest rates at least two more times in the upcoming year.
Start Saving At Least 10% of Your Gross Income
Most people always say that they want to save more, but they don’t know precisely how much they should save and where they should save it. The best thing to do in 2019 is to ensure that you direct at least 10% of your gross income into your savings account. For instance, if you make $2,500 a month, then your savings goal should be at least $250 per month.
Don’t panic when you see your savings goals since you are building an emergency fund that will help you when something unexpected comes up. The best way to stay successful and continuously achieve your savings goal is to set up an automatic transfer from your checking account to your savings account to avoid feeling the pain of transferring this money manually.