Are you ready for a new year? As you plan for the coming year, it makes sense to think about your finances, and what you can do to improve them. Here are 4 money moves to consider making during the upcoming year:
1. Boost Your Investments
One of the best things you can do for your long-term financial health is to boost your investment accounts. Chances are that you aren’t saving enough for retirement. Investing is one of the best ways to build wealth over time, since compound interest boosts your returns.
You have some options when it comes to investment accounts. Try to boost your contributions to your RRSP and TFSA accounts. (If there is college involved, consider the RESP.) If you aren’t contributing the limit, consider arranging your finances so that you have more money to invest.
If you are investing the limit, you can use a “regular” investment account to help you increase your investments. Consider your risk tolerance and other factors, and make a decision about where you can boost your investments.
2. Plug Money Leaks
One of the ways you can find more money to invest is to plug the money leaks you might be seeing in your budget. Recognize that you probably waste a portion of your income each month, and try to identify where that money is going. You can look for deals on TV, Internet and cell phone plans. Think about what other money leaks you might have in your budget, whether you are wasting money on small unnecessary purchases, or whether you are paying too much for insurance.
3. De-Clutter Your Home
Instead of buying more stuff, consider going on a shopping diet. You can also de-clutter your home in an effort to make more money. If you are paying monthly rent on a storage space, the de-cluttering could be a big help. It costs money to keep buying, maintaining, and storing your stuff. Really go through your home and storage unit and get rid of what you don’t really need or want.
You can make money by selling the stuff that is in good condition. Hold a garage sale, or sell your items online. You can use eBay, Craig’s List, or even the local online Classifieds to sell your unwanted items.
Once you have everything cleared out, make it a point not to buy more stuff that you don’t have a place for. Carefully consider your purchases before you do something that adds clutter to your home.
4. Make Sure Your Assets are Protected
Check your insurance coverage and make sure your assets are protected. Make sure that you have adequate life insurance for your family, as well as the auto insurance and home insurance coverage that you need. Carefully look through your policies and decide whether or not you need to increase your coverage. You might need to make changes to your coverage so that your assets are protected as they should be.