With high inflation and market uncertainty, there’s no better time to revisit your financial plan and ensure it prepares you for current or future challenges.
“Many Canadian families faced great economic uncertainty in 2022, but they don’t have to in 2023. With support from a financial advisor, you can develop a personalized, holistic plan to stay on top of your finances and help protect against future economic instability,” said Christine Van Cauwenberghe, head of financial planning at IG Wealth Management.
Here’s what to consider when resetting your financial goals for the year ahead.
Stick to your plan and focus on consistency
Much like staying in shape and eating healthy, consistency is the key to success when it comes to managing your finances. It’s okay if you hit some bumps along the way and you need to course correct occasionally. Over time, your persistence will pay off and meeting your financial goals will be worth the effort involved in sticking with a financial plan.
Tackle that debt
Pay down debts with the highest interest rate first, set up pre-authorized payments from your bank account and avoid accumulating more debt by paying off your credit card every month or shopping with cash.
Build an emergency fund
Prepare for the unexpected by developing an emergency fund that covers at least three months’ worth of expenses, in cash, if unforeseen costs arise.
Plan for the future
It’s never too early to begin planning for the retirement you want. A real retirement plan starts with a clear picture of your goals, lifestyle, expenses and all sources of income – such as a Registered Retirement Savings Plan (RRSP), Tax-Free Savings Account (TFSA), Old Age Security (OAS) and pensions.
Meet with a financial advisor
Financial advisors can help you understand your current financial situation and work with you on an ongoing basis to develop flexible plans to meet your current and future financial needs.
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