GUEST EXPERT. Happy New Year to you, dear readers! If you are like me, health, happiness and prosperity are your priorities for 2024. I let you take care of your health and happiness as you wish and I am responsible for giving you three resolutions to adopt to contribute to your financial development.
1. Your budget
So simple as a word, but oh so neglected! Making your budget is not a single exercise, a speed bump on the financial road that we passed over 15 years ago. Your income increases or decreases just as your expenses and your budget must vary depending on your reality. Only half of Canadians have prepared their budget, and the majority of these people do not update it regularly.
Most financial planners require that their clients' budgets be prepared and presented before beginning work on your financial plan, and with good reason: if you don't know how much money comes in and how much money goes out each month , your financial planner will have a hard time guiding you in achieving your financial goals. Your resolution: have a clear, precise and precise budget, and update it monthly!
2. Savings
According to Statistics Canada, one in four people cannot afford a sudden expense of $500 . With the inflationary context in which we currently find ourselves, we agree that this data is even more catastrophic since the bill for an automobile repair or the veterinarian will undoubtedly exceed $500. Saving should always have a purpose, otherwise it's just money put aside.
Your retirement, the purchase of a first home, the purchase of property for a project: all identifiable goals that your financial planner will use to perfect the strategy he will propose to you. The emergency fund is often and largely forgotten by the public when it should be at the forefront; it certainly is for financial planners who make it their duty to prioritize it above all else. Your resolution: put aside $1000 as quickly as possible and consult your financial planner to establish the amount that should be in your emergency fund!
3. Your tax dynamics
Who says New Year, says tax season soon! Do you know your tax dynamics? Salaried people have a tax reality that is clearly different from that of self-employed workers, just as retired people with a pension from their former employer differ from those retired with real estate to manage as a source of income. The approach that financial professionals adopt is always tailor-made and your tax dynamics is one of the main elements to identify so that your financial plan is a success.
The major advantage for the taxpayer in identifying which tax elements are most relevant to them is clarity: you will be able to silence all the voices that insist on other tax elements that have little or no value for your personal situation. Your resolution: identify your tax dynamics with your financial planner and target the key elements that will help optimize your taxes!