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

SkyTrain’s end of the line, for now, in Whalley. (File photo)
Provincial budget watchers lament no mention of Surrey SkyTrain expansion

But $1.66 billion is earmarked for a second hospital for Surrey, in Cloverdale

Artist Jim Adams pictured in 2017 in the “cockpit” of his home studio in White Rock. (File photo: Tom Zillich)
‘Vancouver Special’ show a home for art by one Surrey Civic Treasure starting May 22

White Rock’s Jim Adams welcomes the ‘major exposure’ at Vancouver Art Gallery

SAIL students Patrick Cioata and Nathan Yeung are among five Surrey students from the BC/Yukon Virtual Science Fair who were selected as finalists for the 2021 Canada-Wide Science Fair. (Photo: Surrey Schools)
Surrey, White Rock students win awards at virtual science fair

Nearly half of the winners were from SAIL

B.C. Finance Minister Selina Robinson outlines the province’s three-year budget in Victoria, April 20, 2021. (B.C. government video)
B.C. deficit to grow by $19 billion for COVID-19 recovery spending

Pandemic-year deficit $5 billion lower than forecast

A lone traveler enters the Calgary Airport in Calgary, Alta., Monday, Feb. 22, 2021. THE CANADIAN PRESS/Jeff McIntosh
VIDEO: Trudeau defends Canada’s travel restrictions as effective but open to doing more

Trudeau said quarantine hotels for international air travellers will continue until at least May 21

Canadian driver Paul Tracy pulls out of the pits during the morning session at the Molson Indy in Vancouver, B.C., Saturday, July 26, 2003 (CP/Richard Lam)
Vancouver is considering hosting a Formula E race using electric cars

The race would be part of a three-day event focused on climate and sustainability

Chart from the April 20 B.C. budget shows sharp dip in real estate sales early in the COVID-19 pandemic and the even steeper climb since late 2020. (B.C. government)
Hot B.C. housing market drives property transfer tax gains

B.C. budget boosts tobacco, sweet drinks, carbon taxes

President Joe Biden holds a virtual bilateral meeting with Canadian Prime Minister Justin Trudeau. (AP Photo/Evan Vucci)
U.S. to help Canada with more COVID-19 vaccine supply, Biden says

The U.S. has already provided Canada with about 1.5 million doses of the AstraZeneca vaccine

B.C.’s 2021 budget is trending in the right direction to support farmers, says the BC Fruit Growers’ Association. (Phil McLachlan - Capital News)
BC Fruit Growers’ Association gives thumbs up to provincial budget

BCFGA general manager said budgetary investments put farming industry on a good trajectory for recovery

Man gunned down Wednesday morning outside of Langley Sportsplex at 91a Ave and 200 Street. (Shane MacKicha/Special to The Star)
VIDEO: IHIT investigating fatal shooting near Langley Sportsplex

91A Avenue at 200th Street is closed to the public as investigation continues

B.C. Finance Minister Selina Robinson leaves the assembly with Premier John Horgan after the budget speech Tuesday, April 20, 2021. THE CANADIAN PRESS/Chad Hipolito
Paid sick leave for ‘hard-hit’ workers left out of provincial budget: BCGEU

‘For recovery to be equitable it requires supports for workers, not just business,’ says union president Laird Cronk

A large crowd protested against COVID-19 measures at Sunset Beach in Vancouver on Tuesday, April 20, 2021. (Snapchat)
VIDEO: Large, police-patrolled crowds gather at Vancouver beach for COVID protests

Vancouver police said they patrolled the area and monitored all gatherings

Most Read