Get Financially Fit

Not sure where to start when tackling your Financially Free Goal? A thorough review can set you up for success in the coming year.

• Analyze past spending: Track your expenses from the past month or two. Categorize your spending to identify areas where you may have overspent or where you can cut back. This could involve reviewing bank statements, credit card bills, and using budgeting apps. Understanding where your money goes is the first step to controlling it.

• Assess your debt: Review your debt situation. List all your debts, including the interest rates and outstanding balances. This can be a daunting task, but resources are available to help break it down and make it more manageable. www.ccdr.ca and www.mymoneymastery.ca
  

• Evaluate savings progress: Analyze your savings goals. Do you have an emergency fund in place? Did you have a savings goal? If not, consider what is holding you back.  Adjust your savings plan for the coming year based on your reflections.

• Review investments (if applicable): Evaluate the performance of your investment portfolio. Consider factors like return on investment, diversification, and fees. If your investments haven't performed as expected, or if your circumstances have changed, consider rebalancing your portfolio to align with your risk tolerance and long-term goals. If you aren't investing yet, consider if it aligns with your long-term goals and research the basics

Instead of making numerous resolutions, focus on one big, achievable financial goal. This targeted approach increases your chances of success. We recommend tackling your consumer debt first, but it could also be saving a specific amount of money for a down payment, or increasing your retirement contributions.

Here are some tips for setting financial goals:

• Set SMART goals: Ensure your goals are Specific (clearly defined), Measurable (trackable progress), Achievable (realistic and attainable), Relevant (aligned with your values and long-term objectives), and Time-bound (with a deadline).
  

• Create a roadmap: Outline the specific steps you'll take to achieve your goals. Detail the who (who is involved), what (what actions you'll take), when (timelines and deadlines), and where (resources you'll use). A written plan helps you stay organized and accountable.
  

• Stay motivated: Celebrate your progress along the way. Small wins can fuel your motivation. Be prepared to make adjustments to your plan as needed. Life throws curveballs, so flexibility is key.
  

By conducting this thorough review, you're not just looking back – you're proactively investing in your future financial success.