Ross said it’s important to be able to measure your success to see if you’re actively working towards your objective. Or, if your goal is to put aside an extra $100 every month into your savings account, you might realize you can swap your $6 lattes for $3 drip coffees. “Once you’ve identified a goal, create an intentional plan that lays out how you propose to achieve it,” Ross said.įor example, if your goal is to save $5,000 for your wedding in 12 months, you and your partner might decide you can each save $300 a month by bringing a packed lunch to work instead of buying one every day. Your goal should follow the acronym SMART, said Ross, meaning that it should be specific, measurable, achievable, relevant and time bound.įor example, do you want to save for a vacation at the end of the year? Do you have an upcoming wedding? Do you want to pay off a debt within six months? Then, see what portion of your budget is more discretionary, such as entertainment, dining out, and shopping, to understand what could be trimmed if necessary.Īfter evaluating your situation, try setting a financial goal that is meaningful to you. Once you know what money is coming in and out each month, see what portion of your spending is relatively fixed, meaning regular costs such as housing, property taxes, and insurance, that are hard to change in the short term. There are several TD resources available to help with understanding your finances, including the TD Financial Health Assessment tool. If you haven’t created a budget before, here’s a TD article on how to make one. Start by asking: How much do you spend each month? Are you going over your budget? Do you even have a budget? How to set – and keep – financial resolutionsīefore you can set a financial resolution or goal, you need to understand your financial picture, Ross said. That said, many New Year’s resolutions often don’t stick for long because they are not realistic, or there’s not an action plan behind them, according to research out of the University of British Columbia. Goal setting can make you feel more in control of your finances, Ross said. It’s a chance to look at spending from the previous year and develop an action plan that best suits individual circumstances and needs. While Ross said setting financial goals shouldn’t be a once-a-year thing, and instead can and should be done throughout the year, the New Year is an opportunity for people to take stock of their current financial situation. What’s more, nearly 50 per cent of Canadians polled said they have lost sleep because of financial worries, according to data published by the Government of Canada. According to a 2022 study by market research firm Leger, one in three Canadians surveyed said financial stress caused them anxiety, depression, and other mental health issues. There’s plenty of research on the relationship between finances and wellness. I think the survey findings show many Canadians are looking to move towards more sustainable spending habits.” The impacts of inflation have been compounding for quite a while now, and debt levels increased in 2023, according to a TransUnion report. “It’s an increasingly challenging economic time for Canadians coming out of a holiday season and into the New Year. “The number of Canadians who are planning to cut spending is quite meaningful,” Ross said. Twenty-eight per cent of new Canadians surveyed plan to cut spending by $1,000 per month, and 23 per cent said they are aiming to trim $2,000 from their monthly spending on things like entertainment, eating out and buying brand-name goods. More than 90 per cent said they plan to cut back on spending, with almost 40 per cent of respondents saying they want to cut their spending by up to $500 per month. The findings are similar when it comes to new Canadians surveyed and their savings goals. One in 10 respondents said they are looking to invest more in 2024 and 5 per cent want to create or build an emergency fund. SUPPLIEDĪmong Canadian respondents who said they are hoping to build up their savings, roughly one in four said they want to pay off credit cards or debt, while another 25 per cent said they are hoping to cut back on spending. This year, stick to your financial goals by making them attainable. Across both demographics, roughly 30 per cent of respondents said they are looking to build up their savings as much as possible this year - which is likely a reflection of current economic concerns around inflation and the rising cost of living, said Emily Ross, VP, Everyday Advice Journey at TD.
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