7 Simple Tips to Fix Your Financial Gaps, Get Your Finances on Track & Reclaim Your Future  

1. Live below your means.  I know it sounds simple, but it will make a difference! Take an inventory of what expenses you actually are making and what expenses you HAVE to make. Make sure you’re not spending too much on things you don’t need. Spend money on what you want not what you think your friends and coworkers or even your family think is important… it should be important to you.  You can still buy things you need, but wait until you have the money rather than putting it on a credit card or getting a loan. Do a simple cash flow inventory. Don’t forget to look at automatic payments on credit cards. If you need help or a sample, contact me and I’ll be pleased to send you one.
2. Pay off credit card balances.  Or if you have to, keep balances on lower interest cards.  Take advantage of zero-interest payment plans and put money aside to pay this off at the end of the term.  Most credit cards charge 19% or more for unpaid balances. If you keep balances on credit cards, you end up paying 2 to 3 times what to original item may have cost. See if there is a lower interest cost option if you keep a balance, or even a points card, to get bonuses if you spend.
3. Save money each month for emergency expenses.  Save enough so you can pay all of your bills for 6 months. Keep this available as cash. This way if you lose your job or are faced with a large unforeseen expense you won’t have to go into debt or take money from your investments.
4. Save money each month for your future. A small amount of money will grow over time. The key is to start early and save as much as you can. You can start with as little as $25 per month because every little bit will add up. If your income increases, you can always increase the amount you save each month. If your income is below $50,000 your first goal should be to save interest by paying off credit cards, the second is to put money into a TFSA – tax-free savings account, and third into an RRSP. Ensure the tax benefits of an RRSP make a difference for your situation.
5. Develop a Realistic Budget /Spending Plan and Commit to it.  In order to make improvements you need to know where you stand, so once you have determined what your spending needs are, what you want to put towards debt repayment, and what you can save, put it all in one summary. Some months you may have quarterly or annual bills that are due. Other months you may have 3 paychecks instead of 2. For these reasons, consider creating a plan that factors all of your expenses on a monthly basis so you are not caught off guard.  Paying off debt and making financial changes is not easy. Don’t give up along the way. Make a commitment to yourself to keep to it. Start with small changes and work up to your overall goal.
6. Protect your income with insurance. Unfortunately, unforeseen medical and life events happen that can lead to income disruption and financial struggles. If you set up the right insurance, it is trading pennies now for dollars in the future. Make sure you have the right health, property, and life insurance, not all may be right for you. The younger you are, the more cost-effective it will be.
7. Have a Plan. There is a misconception that you have to have a considerable amount of money to have a Financial Plan and work with a Financial Planner.  A Financial Plan is simply writing down what you want and setting out the steps to achieve it and a Financial Planner is a great partner to help you build this plan. Think about where you want to be in the future and what it will take to get there, and make a financial plan and stick to it. If you need help with the strategy part (Taxes, Investments, Insurance, Estate Planning) the important part is to find a Financial Planner you trust to work with.

If you need assistance please contact me for a complimentary 30-minute discussion and cash flow consultation. It’s never too late to start!