Are you looking forward to a fresh start in 2021? You’re not alone! Gain better financial health by making these top 10 resolutions this year.
1. Determine the 2020 effect
2020 was a difficult year on multiple fronts – including, for many people, financial. Review your investments, budgetBudget A monthly or yearly estimated plan for spending and saving. You work it out based on your income and expenses.+ read full definition vs. actual spending, and financial outlook to see if there are any changes that need to be made in 2021.
2. See if your investing personality has changed
For those who have experienced significant life events in 2020 – losing a job or changing employers, having a child, or getting married or divorced, your investing priorities and risk tolerance might have changed. Take this quiz to learn more about your current investing personality.
3. Create an emergency budget
The importance of having an emergency budget to fall back on when the unexpected happens was driven home in 2020. Ensure you have enough cash on hand to cover unanticipated events without taking on debt. Learn more
4. Focus on your big goals
Think about your financial priorities. Have they changed? Do you want to buy your first house, or are you saving for retirement? Ensure your savings and investments are in-line with these goals. Learn more
5. Take a “no-spend” challenge
Do you want to pay off debt? Save more for retirement? Achieve your goals more quickly by taking a no-spend challenge. Commit to only spending money on essentials during a predetermined time frame – a week or a month, it’s up to you. Find free entertainment, raid your pantry, use the library instead of buying books. Your bank account will thank you.
6. Take off your “one click” payments
The most difficult part of budgeting is sticking to one. Increase your chances of keeping your spending in control by taking off the “one click” payment options on your online retail accounts. Having to input your credit card information may provide enough of a small interruption for you to decide that you didn’t really want the item anyway. Learn more
7. Mind the debt
While debt can be helpful in achieving big goals, like post-secondary education or buying a house, it should be used wisely. Learn more about when to consider borrowing and strategies to pay down debt.
8. Check registration
Before you invest, check the registration and background of the person offering you the investment – it’s easy and it’s free. In general, anyone selling securities or offering investment advice must be registered with their provincial securities regulator. Learn more
9. Guard against fraud
Fraud can happen to anyone, and it has a devastating impact on victims. In 2021, continue to look out for , as fraudsters often use current events as a “hook” for their scheme. Investment fraud can be easier to recognize – and avoid – when you know what it looks like. Learn more
10. Get in touch with the OSC
We’re here to help. Ask us your investing questions, contact us with any inquiries and complaints, and let us know if we can assist…. what your priorities are and what we should be focusing on in our work. We can assure you there are no bad questions – and if you’re wondering about something, someone else is too!
This year, stick with your New Year’s resolutions! Visit GetSmarterAboutMoney.ca or InvestorOffice.ca for many tools and resources to help you make sound financial decisions. We wish you a happy and healthy new year!