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If you’re determined to ring in the new year with better financial health, you’re not alone. A survey found that 22.3 percent of Canadians will focus on their financial goals like saving money, investing, budgeting, and paying off debt in the new year. However, the survey also reveals that almost 70 percent fail to meet their goals due to a lack of motivation, among other reasons.
Healthy financial habits are a great way to reduce stress, but a lack of planning can make it difficult to move forward. The good news is you can bring your financial goals to the top of your list in 2023 with the following strategies.
Create a Realistic Financial Plan
Trying to achieve your financial goals can be challenging when your plan is unrealistic, leading to a lack of motivation to proceed. Get closer to your goals by creating a realistic plan that works best in your favour. Consider your income, spending, and future goals to devise an achievable plan.
The most important elements of a good financial plan are budget and cash flow planning, debt management plan, emergency funds, and net worth statement. These elements can help you clearly understand your current financial status and the steps that can help you improve your financial health.
Set Short & Long-Term Goals
Your short and long-term financial goals can vary significantly, and it’s essential to determine which ones to prioritize. Short-term goals may include buying a car, paying for a vacation, or conducting home repairs. Long-term goals, on the other hand, typically involve paying for children’s education, saving for retirement, getting returns on investments, or buying a home.
Once you have set your goals, creating a plan to achieve them will be easier. Your primary focus may be either short- or long-term goals, depending on your financial status and urgency to meet the goals.
Be Prepared for Emergency Spending
Unforeseen expenses can arise at any minute, making it challenging to maintain your finances during tough times. This could involve sudden car problems, the need for home repairs, or job loss. It’s important to be prepared for emergency spending to avoid financial stress.
The best way to be financially prepared is through access to an emergency savings fund. One of your primary goals this year should involve creating and maintaining an emergency fund that gives you access to cash when you need it most.
If you don’t have sufficient funds for an emergency, you can also be financially responsible by educating yourself about loan options near you. The more you know about short-term loans, the faster you can make an informed decision during a crisis. Do your research and list down the best lenders offering online cash loans in Ontario to quickly apply for a loan when needed. A reputable platform with online services typically includes a simple application process, allowing borrowers to get fast cash when necessary. This will reduce the risk of taking money from unlicensed lenders or falling for financial scams.
Changing your old financial habits and developing healthy ones isn’t a one-step process. It requires time and dedication, which is simpler when you know the best ways to proceed. Follow the steps above to build healthy financial habits to help you reach your goals in 2023.