2017 is fast approaching. Time to start making New Year’s resolutions. Whether it’s exercising more, eating healthier, or spending more time with loved ones, it’s important to start planning for a better future. Coupled with work, school, family, and friends, juggling our personal lives and financial futures can be a daunting task. However, it’s important to consider the paths we can choose in order to secure our goals. It takes time, something that the majority people simply don’t have. But, with some professional advice and smart planning, we can get there someday.
At Loans Canada, we love to make financial New Year’s Resolutions as a team. It’s a fun way to dish on the topic we love most, personal finance and allows us to set some goals for the coming year. Here are a few of our team members’ resolutions for 2017.
Chris’ 2017 Resolution: Plan For the Future
“Hi, my name is Chris, and I’ve been working for Loans Canada for a few years. I’m definitely looking to forward to the future and having a family. This means that financial security is super important to me. I’ve decided that 2017 is going to be the year that I make sure the money I’m saving is secure and invested properly.”
How to Achieve Chris’ Resolution
If Chris wants to plan for the future and make sure his money is working for him, he should set up a meeting with his bank. A financial advisor at your local branch will be able to help you open and set up any, and all accounts you’re interested in, as well as make sure you’re using them appropriately. A simple chequing account won’t help Chris achieve his financial goals. He needs to take his banking to the next level.
One of the first steps he should take in the New Year is opening up a Tax-Free Savings Account, of which there are usually several different types. This is always a good idea, as any money that’s put into a TFSA won’t be taxed, and gains interest. So, with every cheque deposited, Chris can set aside a portion into his savings account, and later on, put it towards a house, if he so desires. In Canada, he also has the option of opening an RRSP (Registered Retirement Savings Plan, read more here). This is another investment plan in which Chris can set aside money, the amount of which can be discussed with his financial advisor. Deposited every month, these investments become available for use during Chris’s retirement process.
Caitlin’s 2017 Resolution: Spend Less on Useless Things
“My name’s Caitlin. I’ve been writing for Loans Canada for over three years now, I recently graduated from university. On top of that, I just moved into an apartment. My student debt is an ongoing problem for me. What with taking on a full course load in every semester, it was extremely difficult for me to work enough to keep up with rent.”
How to Achieve Caitlin’s Resolution
Student debt is a reality that many people will struggle with upon graduation. Luckily, most educational facilities offer some form of financial aid, along with payment plans. In 2017, not only does Caitlin plan to go back to work full-time, but she also wants to manage her budget efficiently, so that by the time her student loan is paid off, she also has a nest egg to fall back on, rather than building up her savings again from scratch. Cutting down on unnecessary expenses is an important part of any person’s life, especially when you’re living on your own. Buying groceries and eating in-house, instead of ordering from restaurants, helps keep money in her pocket, as well as resisting the urge to spend money on useless things that won’t last.
Sierra’s 2017 Resolution: Become a Homeowner
“Hello, I’m Sierra. I’ve been working for Loans Canada since the company’s start. My goal for 2017 is to settle down in my own house. I’m nervous about it, because there are tons of things to consider when becoming a first-time homeowner.”
How to Achieve Sierra’s Resolution
While being a homeowner means she won’t have to deal with landlords and overhead neighbors, buying a house comes with a slew of financial responsibilities. However, there isn’t a better way to learn how to save money and make smart choices, than moving into your own house. Once the house is inspected and your mortgage is approved, it’s time to move in and start thinking about the costs you can cut down on. Renting a cube truck and making the move with friends or family, instead of hiring a team of professional movers can help. When the boxes are unpacked, Sierra needs to make her situation liveable. This doesn’t just mean food. Sierra needs the internet to get her work done, and she has a phone bill to consider. Here in Canada, the winters are cold. Making sure to keep an eye on the thermostat when she’s dealing with a costly hydroelectric bill is very important. Taking public transit or carpooling goes a long way. Throw in a decent sofa purchased from a reputable used-furniture website, and Sierra can sit back and let the years roll by.
Check out our Essential Guide For Saving, here.
Bring it on, 2017
New Year’s resolutions are something that we make in order to gradually shape our futures into what we want them to be. Managing a budget, and seeking professional help to sustain a proper financial situation are important factors in making sure we can make good on them. After the Ball drops, where will you be headed?
