So the New Year is coming up, and I’m sure many of you are going to make New Year’s resolutions that will eventually be forgotten within two weeks. I know I have done this way too many times — we’ve all been there! And that’s why today, I want to give you financial resolutions that you can actually keep.
WHAT IS YOUR NET WORTH?
The first thing you can do is calculate your net worth. The new year is a great time to determine your current financial position, which can also help you achieve your financial goals. And on top of that, your net worth can help you better navigate your resolutions. If you’re not sure how to calculate your net worth, you can complete a survey through AdvisorFlow. Ultimately, you can calculate it simply by what you own minus what you owe.
UPDATE YOUR SAVINGS GOALS
This brings us to the next step, which is to update your savings goals for the year. You might have gotten a raise, or you might have switched careers. Whatever it is, your savings goals might have increased or decreased. Either way, it’ll be beneficial for your bank account!
And another tip, make sure to transfer whatever money you want to save up into a savings or investment account regularly. Do NOT keep it in your chequing account! If your money is easily accessible, it will make it much more tempting for you to spend it all. And we don’t want that to happen.
REVIEW YOUR INVESTMENT PORTFOLIO
The third thing you can do is review your investment portfolio with a professional. Since the stock market is currently down, I’m sure most of your investments are also down right now. And that is okay! Just remember, everyone else is in the same boat as you right now so you are not the only one. You don’t want to stress about it and sell while the market is low. If you have a financial advisor, then I’d suggest meeting with them so that you can review your portfolio with them. Remember, your financial advisor is here to help you financially succeed.
And another tip for those who are getting older, or have hereditary illnesses – you should review your life insurance and disability insurance needs. If you haven’t yet gotten insurance, maybe it’s a good time for you to start. And for those of you who already do have insurance, it’s important to start reflecting on how much protection you need and compare it to the coverage you already have through your work benefits package and personally owned plans. Keep an eye out for a more detailed video I will be posting soon on the difference between life insurance and critical illness insurance.
Ultimately, the New Year is a great time to have a fresh start. Make sure you don’t set unrealistic financial goals, because they’ll just be unachievable, and eventually long forgotten. What are some of your goals for the year? Let me know down below, and feel free to ask questions if you have any! Happy holidays.