Now that the calendar has turned another page, it is a good time for self reflection and goal making. This year, instead of vowing to join the gym again or going on a strict diet plan (which are both healthy options in their own right), why not make a resolution to save more money? You can start by reviewing your financial strengths, study your budget and make a plan for the new year.
Here are 5 money resolutions to consider.
Make Extra Mortgage Payments
Resolving to pay extra monthly on your mortgage bill this year will reduce the time and amount it will take you to pay off your home, but it will also reduce the amount of interest that the mortgage provider receives, leaving more money in your pocket.
Fund Your Education Savings Plan
Individuals with registered education savings plans (RESPs) like those provided by Children’s Education Funds Inc. (CEFI) should consider boosting their contributions in 2020. Doing so is a tax-savvy way to save for future higher-education expenses. A reminder: if you would like to receive the maximum allowable amount from the Canada Education Savings Grant (CESG), you will need to contribute $2,500 annually.
Pay off High Interest Rate Credit Cards
Instead of saying, “I’m going to repay all of my debt this year,” which can be a tall order, commit to paying off any high interest rate credit cards. Take a moment to call your credit card company to negotiate a lower percentage rate or vow to contribute an extra $100 a month to your bill.
You can also consider whether consolidating your credit cards into one payment would be the most cost efficient.
Live Within Your Means
This year, take a step back and stop spending money on frivolous items; instead, learn to live within your means and save money in the process. Although this seems like common sense, it can be difficult to do. Start by tracking your finances so you know exactly where your money is being spent. You’d be surprised how cutting out buying lunch a few times per week can add up to hundreds of dollars per month.
Learn to Save
Saving more money than you spend takes some practice, but it is well worth it in the long run. This year, get serious about a budget and change your mindset. Just because you have committed to pinching pennies doesn’t mean you have to quit spending altogether. It simply means you have to prioritize some financial goals over others.
