New Year's Resolutions for Good Financial Health

Feb 06, 2019 | Heather J. LeBar


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New Year’s Resolutions for Good Financial Health

We’re in month two already – how are you doing with your resolutions? There are so many of these lists published every year and there’s nothing particularly ground-breaking about mine except that I believe you should start off every year reviewing this list and checking in with your financial health. At this time of year a lot of you will be making RSP and TFSA contributions so here’s some food for thought.

  • Schedule a portfolio review and show up prepared with questions.

For example: Do you know what your asset allocation is and do you understand it? I’m developing a new review format that solicits clients’ expectations and priorities ahead of the meeting so I can better tailor our time together and clients are prompted to think of what they most want to talk about in the meeting. (I’m open to suggestions if you have any – shoot me an email at heather.lebar@rbc.com.)

  • Make a financial plan.

This is pretty basic but setting out your goals and then mapping out the route is the best context for reviewing your investment portfolio. Markets fluctuate but knowing if your rate of return is on track is the best way to weather volatile periods.

  • Are your will and powers of attorney are up to date?

Ok, you probably don’t have to do this one every year but at least ask yourself if anything’s changed that would affect your estate plan. The birth of a child, death of a parent, divorce or separation – these are some of the life events that warrant a review of your plans.

  • Automate as much as you can.

Most people are pretty comfortable with online banking and bill payments by now. Check to make sure you’re taking full advantage of your online platform. Make your good habits automatic.

  • Set an intention for the course of the year – Reducing debt? Reigning in undisciplined spending habits? Saving x number of dollars? Finally making an estate plan?

Choose a focus and work toward it every day. It’s a subtle shift in mindset rather than a difficult-to-maintain sweeping change.

The deadline for RSP contributions is Friday March 1st this year.

Until next time,

Heather

Look for me on Facebook – H.J. LeBar of the Harper Wealth Management Group of RBC Dominion Securities or LinkedIn – Heather J. LeBar, for more frequent updates.