It’s time to make those pesky New Year’s Resolutions again. However, too many people take a ‘Save-More, Spend Less’ mentality when it comes to financial goal-setting for the new year. This year, we want you to take a different approach.
Let your financial goal of 2016 be having the knowledge to set proper financial goals, spend smartly, and invest without losing all your money. The key here is becoming more knowledgeable and more confident.
So in order to do that, here’s our 5-step guide to actually setting and achieving your financial goals for 2016.
STEP 1: Set Proper Financial Goals
It’s in the title, so it makes sense that the first step is to decide what your financial goals are for 2016. But it’s not enough to make laundry list of things you want to have or buy. Take the time and research how much your goals will actually cost you. A $5,000 car and a $30,000 car are completely different goals. Watch the video and see what the most common goals are, and how much they cost.
STEP 2: Budget Without Losing Your Mind
2016 is the year you overcome your budget-phobia. Quit fumbling with Excel trying to create your own budget template, and follow one that has helped hundreds of people stay on track with their financial goals. The ‘Money Gameplan’ not only gives you a high-level view of how much savings you can achieve in a year, but also a detailed view of your spending.
STEP 3: Pick the Perfect Credit Card
Get in the habit of putting most of your purchases on your credit card. Cashback and Reward Points are worth putting your debit card and cash aside, provided you’re a financially responsible person. Learn how to pick the right credit card for the type of expenses you make here, and be sure to take the time to research the different card options out there.
STEP 4: Get a Grasp of Investing Products
When it comes to investing, many people run away in horror due to all the weird terms that financial advisors (and the like) use. This crash course on investment products is perfect for anyone that wants to dip their toes into investing.
STEP 5: Choose the right Investment Account
RRSP or TFSA? This is the one question that most people ask once they start looking into investing. Learning about how these two investment accounts differ will help you in making the right decision.
If you follow these five steps, 2016 will actually be the year you achieve your financial goals.
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