VIDEO: New Year’s resolutions help plot path to improving your financial health in 2020

VIDEO: New Year’s resolutions help plot path to improving your financial health in 2020

Just resolving to spend less won’t cut it, one expert says

As 2019 fades in the rear-view mirror and 2020 looms ahead, advisers recommend that Canadians assessing their current financial health take a look back to discover how they got there and what they can resolve to do differently in the coming year.

“The point going into the New Year for a resolution is just do something, take the first step,” said Brian Betz, a counsellor at Money Mentors in Calgary. “Put down a spending plan on paper.”

Just resolving to spend less won’t cut it, he said. It’s time to be specific. Set realistic goals and achievable targets, with a specific timeline.

And that applies to extra income raised by getting a part-time job or selling an unneeded asset.

“Put it on your debt or into your savings. Make sure it’s earmarked for something,” said Betz.

When Mark Kalinowski, a financial educator for the Credit Counselling Society, cut back on his caffeine habit after a spending review revealed his addiction to Tim Hortons coffee was costing him about $15 a day, or about $5,500 a year — much more than he expected.

Keeping track of spending is easier these days because of technology, he said, noting there are many free budgeting programs and apps available to track and warn consumers when they spend unwisely.

“Keep your ultimate goal really visible,” he advised. “If you want to go on a vacation to Paris, make it the screensaver on your phone.”

Never go to the grocery store without a shopping list, Kalinowski added. But buy pork or chicken when it’s on sale, even if your grocery list says beef.

Employees should also resolve to take full advantage of employer programs, he said. They should find out if their employer will pay for part of a gym membership or cover other fees and always claim allowed expenses for things like mileage, parking, physiotherapy, dental appointments and pharmaceutical drugs.

Laurie Campbell, CEO of Credit Canada, advises against making resolutions. Instead, she suggests setting a goal that follows the SMART process (specific, measurable, attainable, realistic and time-bound).

When paying down debt, choose between the avalanche method, where high-interest debt is tackled first, or the snowball method, where you pay off the debt with the smallest balance first and then move onto next one, she said.

Consumers should resolve to schedule a “no-spending” day each week, Campbell said, and reach out to phone, internet, cable and gym service providers every few months to negotiate better rates and packages.

Every financial plan should include a retirement component and that can extend beyond RRSPs and TFSAs to include voluntary company benefit plans with matching employer contributions, if available, said Craig Hughes, a director of tax and estate planning at IG Wealth Management.

Resolve this year to build an understanding of programs such as Old Age Security and the Canada Pension Plan, he added.

“Position yourself for retirement success by understanding what these programs offer, recent enhancements, benefits commencement dates and strategies available to optimize the amounts you’ll receive from them,” he advises.

Resolve to protect yourself from scams such as the fake Canada Revenue Agency calls currently making the rounds in Canada, says tax specialist Lisa Gittens of H&R Block.

She recommends making sure the caller is a CRA employee by asking for their agent ID, name, phone number and office location, then hanging up and calling back at one of the official CRA numbers found on their website.

Remember that the CRA will send notices to your mailing address if they have an official issue to talk to you about, she said.

Dan Healing, The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Rose Sawka, a 91-year old Acropolis Manor resident received her COVID-19 vaccination on Jan. 20, one day after an outbreak was declared at the long-term care facility. Her son Terry Sawka visited with her through the window, like she is seen in an Oct. 2020 photo. (Photo: K-J Millar/The Northern View)
Acropolis Manor COVID-19 cases jump to 20 confirmed

Prince Rupert long term care facility received vaccinations

Illicit drug use has spread in the Northern Health region and overdose emergency calls increased in Prince Rupert by 29.5 per cent from 2019 to 2020. (Photo:THE NEWS/files)
Overdose emergency calls in Prince Rupert spikes by 43.6 % in five years

Northern Health issues illicit drug use warnings

Glenn Hall, resident at Yellowhead Pioneer Residence Assisted Living in Barrierem B.C. received their first COVID-19 vaccinations on Jan. 19. (Pam Simpson photo)
Acropolis residents and staff to receive COVID-19 vaccine

Prince Rupert long term care residents will receive the vaccine on Jan. 20

An outbreak of COVID-19 was declared on Jan. 19 at Acropolis Manor. The long-term care home also had an influenza outbreak nearly two years ago.
COVID-19 outbreak declared at Acropolis Manor

Prince Rupert long-term care home has four resident, three staff cases

Lax Kxeen Elementary School has two different active notices for potential COVID-19 exposure after three adult lab-confirmed cases of the virus were identified in Prince Rupert schools, School District 52 released in a statement on Jan. 18. (Photo K-J Millar/The Northern View)
Three adult COVID-19 cases result in four potential exposures in city schools

Prince Rupert School District 52 calls special open meeting

Maj.-Gen. Dany Fortin, vice-president of logistics and operations at the Public Health Agency of Canada, speaks at a news conference on the COVID-19 pandemic in Ottawa, on Friday, Jan. 15, 2021. THE CANADIAN PRESS/Justin Tang
B.C. records 500 new COVID-19 cases Wednesday, 14 deaths

Outbreak at Surrey Pretrial jail, two more in health care

A woman writes a message on a memorial mural wall by street artist James “Smokey Devil” Hardy during a memorial to remember victims of illicit drug overdose deaths on International Overdose Awareness Day, in the Downtown Eastside of Vancouver, on Monday, August 31, 2020. THE CANADIAN PRESS/Darryl Dyck
B.C. paramedics respond to record-breaking number of overdose calls in 2020

On the front lines, COVID-19 has not only led to more calls, but increased the complexity

Eighteen-year-old Aidan Webber died in a marine accident in 2019. He was a Canadian Junior BMX champion from Nanaimo. (Submitted)
Inadequate safety training a factor in teen BMX star’s workplace death in 2019

Aidan Webber was crushed by a barge at a fish farm near Port Hardy

Southern resident killer whales in B.C. waters. Research shows the population’s females are more negatively influenced by vessel traffic than males. (Photo supplied by Ocean Wise Conservation Association)
Female orcas less likely to feed in presence of vessel traffic: study

Research the southern resident population raises concerns over reproduction capacity

(Black Press Media files)
Transport Canada not budging on enclosed deck rules, despite calls from BC Ferries union

There have been at least 23 cases of the U.K. variant detected in Canada, four of which are in B.C.

The Elk Valley Hospital is adapting to meet the needs of patients in the Elk Valley.
1-in-5 COVID tests coming back positive in and around Fernie, sparking concern

Dr Ron Clark of Elk Valley Hospital said one in five tests was returning positive for COVID-19

Throughout December, RCMP conducted CounterAttack road checks as police worked to keep roads free of impaired drivers. (BLACK PRESS file photo)
‘You can’t make this stuff up’: Stories from the B.C. CounterAttack campaign

Amusing, yes, but a reminder impaired driving affects ability to drive and to make good decisions

(Thesendboys/Instagram)
Video of man doing backflip off Vancouver bridge draws police condemnation

Group says in Instagram story that they ‘don’t do it for the clout’

Inspection of bridge crossing on a B.C. forest service road. (B.C. Forest Practices Board)
B.C. falling behind in maintenance of forest service roads

Auditor finds nearly half of bridges overdue for repair

Most Read