It’s universal. When the New Year comes, it’s the time to make a recap and try to be better, to improve where we can. For many, resolutions are related to finances. As we all know, a healthy financial life is a process that demand rigor and dedication. That is why, at Alterfina, we prepared a list that can be used as a reminder, to help you keep your resolutions all year long.
Be realistic!
If you are beginners in the financial planification domain, the goal is not to deprive yourself from your life pleasures, like your food ordering nights, your movie theaters nights or your drive-through coffees, but more to be aware of your spending habits and see where it’s possible for you to reduce, without complete privation.
As an example, if you notice that you order food once a week, why not reduce to once every two weeks, and reduce your drive-through coffee to once a week? This way, you fix yourself realistic objectives, with a rewarding system. And more, it is guaranteed that you’ll enjoy even more your ordered pizza when it’ll be well deserved!
Adapt your budget
When we have in mind to reduce our expenses and to make a budget, we have tendency to see our budget as restrictive and as a tool that is only used to calculate our essential needs. The truth is in facts, the best budget for you is one that will be adapted to your needs, no matter what they are and no matter what your financial goals are. If you wish to keep going out to restaurants twice or three times a month, it’s possible for you to simply add a budget line to your night out eating.
This way, you will be putting some aside every week, and your outings will not be doing much damage in your wallet. You can do the same exercise for your family vacations, your concert tickets, or even for a future trip.
Avoid spontaneous expenses
We’re all a little bit guilty to have done it, mainly at the beginning of the pandemic. Online shopping was our only way to buy, so many impulsive buying was made. Because most of the online shopping is paid with a credit card, overconsumption can become very easy.
A tip to undo those bad habits is to take time to analyze and think of the utility of every stuff you want to buy. Keep your Web tab opened for few hours or few days. Most of the time, when you’ll come back to your buying cart, your will to buy some items will have completely disappear. If after thinking about pros and cons, you come back to the same conclusion that you need this article, you can proceed to the purchase. Chances are that to total cost of your receipt will be a lot more reduced afterward.
Meet a financial advisor
When it comes to put our finances back on track and you need a financial advice, financial advisors are your best friend. They can work with your bank, as well as being independent. When we decide to be working with an advisor that is really toward our needs, that understands our reality and that cares about your financial health, everything becomes so much easier and more accessible. They become, in some way, a wallet manager.
A great financial advisor will know how to propose reachable goals for your future projects, whether it be for a property or a car purchase, or to save for your retirement planning. He will also be able to find a mutual funds and financial product and services adapted to your specific need and that will have an impact on your long- and short-term finances. He can also support you in a financial rehabilitation process, such as debt reimbursement, student loans or credit score rehabilitation and thus, reach your saving goals.
Be patient!
Financial health is a life learning experience.
Know that there is always a way to improve, no matter what level you are on. At any rate, financial health is a process that can seem long, but that will be rewarding at the end. A tip to keep you motivated to reach your goal, go one payment at a time. It is not useful to think about how much time left you will be paying, or the amount you have left to pay. It must be seen one day and one payment at a time. It is the best way to keep track on your financial plans and it is also to best to keep your good habits on the long run!
Now that you have all the needed tools for your financial resolutions, the only step left is to start! And remember, it’s never too late to take care of your money, even if we are not in the beginning of a new year!
Small inconvenience? Alterfina is here to offer financial services, no matter your financing situation or your credit file. Go at https://alterfina.ca/en/about-us to learn more and apply.