With the New Year approaching fast, we come at a time where people think on a New Year’s resolution, which hopefully can change their lives for the better. In respect to our finances, Canadians are optimistic about their financial situation in 2011, and are taking action as to how they can make positive changes.
The top 3 answers when asked about their financial resolutions for the New Year is:
- Spend less and avoid buying things I don’t need (53%)
- Look for better deals (38%)
- Build up savings to cover at least two months of living expenses (30%)
- Realistically, it is much easier than one might think to actually follow through with one of these financial resolutions, and it is definitely possible to follow through with all 3 of them.
- Whether you have created a financial resolution or not, here are 3 tips that will help you improve your finances:
- Live within your means
To live within your means you have to spend what you can actually afford, and not be overzealous with your spending. Stick within a suitable region of your spending and you will be able to spend and save simultaneously.
- Set up an automatic savings
By setting up an automatic withdrawal you allow yourself to build a small savings without doing much at all. You will allow yourself to save money as frequently as you want, before you have a chance to spend it. This way you can save for a rainy day, for a vacation or any other goal you may have in mind.
- Know what you want and what you need
This is probably one of the best tips you will hear. Differentiating between what is a necessity and what you want is very important. Evaluate each purchase, and decide whether it is a necessary for you to continue your daily life, or it is just something you want. Do not get me wrong, once in a while you may go off track and make a purchase based solely on instinct, remember that we are only human it does happen once in a while.