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

Grandmothers to Grandmothers is a campaign that connects Canadian grandmothers with grandmothers in Africa who are caring for children orphaned by AIDS. Here, they are in Kakuto, Uganda in 2018. (Kibuuka Mukisa Oscar photo)
Greater Victoria and African grandmothers celebrate solidarity with virtual concert

Grandmothers to Grandmothers supports women in Africa caring for children orphaned by AIDS

Naloxone is used to treat opioid overdoses. (Black Press Media files)
Island Health issues overdose advisory for Greater Victoria

The advisory directs bystanders to an overdose to call 911 and administer naloxone

A vehicle that was driven through the wall of a parkade at Uptown Shopping Centre and into the nearby Walmart on April 9 was removed through another hole in the wall later that night. (Photo via Saanich Police Department and Ayush Kakkar)
Driver who crashed into Uptown Walmart likely suffering mental health crisis, police say

Man in his early 20s drove through a parkade wall, no serious injuries reported

Supporter Gordy Dodd cheers on HeroWork Victoria executive director Trevor Botkin, who will be in a lift for 36 hours beside Dodd’s Furniture and Mattress on April 16 and 17 to raise funds for the organization’s next project, a makeover of the Salvation Army’s Addiction and Rehabilitation Centre on Johnson Street. (Courtesy HeroWork Victoria)
HeroWork Victoria tackles makeover of Salvation Army rehab centre

Executive director to spend 36 hours living in a lift as fundraiser

West Shore RCMP is seeking information about a collision involving a car and a bicycle on Six Mile Road, near the Island Highway, at 11:30 a.m. on April 7. (Black Press Media file photo)
West Shore RCMP seeks information about collision between bike, car

Collision occured on Six Mile Road on April 7 and a bystander got the blue car’s plate number

Restaurant patrons enjoy the weather on a patio in Vancouver, B.C., Monday, April 5, 2021. The province has restricted indoor dining at all restaurants in B.C. due to a spike in COVID-19 numbers. THE CANADIAN PRESS/Jonathan Hayward
B.C.’s COVID-19 indoor dining, drinking ban extending into May

Restaurant association says patio rules to be clarified

Two men were seen removing red dresses alongside the Island Highway in Oyster Bay. (Submitted photo)
Two men filmed removing red dresses from trees on highway near Ladysmith

Activists hung the dresses to raise awareness for Vancouver Island’s Murdered/Missing Women & Girls

B.C. Premier John Horgan speaks at the B.C. legislature. (B.C. government)
Tougher COVID-19 restrictions in B.C., including travel, still ‘on the table’: Horgan

John Horgan says travel restrictions will be discussed Wednesday by the provincial cabinet

RCMP on scene yesterday at the altercation at the trailer park. (Submitted photo)
Violent altercation at Port Hardy trailer park sends one to hospital

Police say man confronted another over airsoft shooting, then was attacked with a weapon

John Albert Buchanan was found guilty of manslaughter in the 2017 death of Richard Sitar. Pictured here, Buchanan walking to the court in Nanaimo last year. (Karl Yu/News Bulletin)
Six years including time served for Nanaimo man in bludgeoning death

John Albert Buchanan sentenced in B.C. Supreme Court in Nanaimo for death of Richard Sitar

Flow Academy is not accepting membership applications from anybody who has received a dose of the vaccine, according to a password-protected membership application form. (Submitted image)
B.C. martial arts gym refusing patrons who have been vaccinated, wear masks

Interior Health has already issued a ticket to Flow Academy for non-compliance with public health orders

Guinevere, lovingly referred to by Jackee Sullivan and her family as Gwenny, is in need of a gynecological surgery. The family is raising money to help offset the cost of the procedure. (Jackee Sullivan/Special to Langley Advance Times)
Langley lizard’s owners raise funds for gynecological surgery

The young reptile is scheduled for operation on Tuesday

Facebook screenshot of the sea lion on Holberg Road. (Greg Clarke Facebook video)
VIDEO: Sea lion randomly spotted on remote B.C. logging road

Greg Clarke was driving home on the Holberg Road April 12, when he saw a large sea lion.

Defence counsel for the accused entered two not guilty pleas by phone to Grand Forks Provincial Court Tuesday, Jan. 12. File photo
B.C. seafood company owner fined $25K for eating receipt, obstructing DFO inspection

Richmond company Tenshi Seafood is facing $75,000 in fines as decided March 4 by a provincial court judge

Most Read