Canadians may have indulged a bit too much over the holidays, but their focus in the new year is on boosting their savings rather than cutting calories. A December 2011 poll from Investors Group found that 63 percent of respondents prioritized saving money over losing weight, which only 27 percent considered more important.
The beginning of a new year is an ideal time to reassess your savings habits.
“Reviewing your spending from the past year can highlight areas where you might need to make cuts and see the savings you could have accumulated instead,” says Jack Courtney, assistant vice-president of advanced financial planning at Investors Group. “Saving should be part of your overall financial plan, and any plan should be regularly revisited and adjusted as your goals and lifestyle change.”
The good news is that many Canadians are already heading in the right direction. When asked to reflect on their decisions in 2011, the majority of respondents to the Investors Group poll said their best decisions were related to their personal lives (57 percent). Work-related decisions were rated best by 22 percent, and money decisions were cited by 13 percent as their best of the year.
Personal and financial decisions might seem unrelated, but the new year’s resolution mindset can spark positive changes in all areas.
“While most Canadians don’t make concrete resolutions annually, the new year is the perfect time to decide on changes for the year ahead,” Courtney says. “The idea of a New Year’s resolution allows people to reflect on the past year and set goals for the next.”
However, there are some financial lessons Canadians could benefit from learning. For example, paying down debt and investing money were lower on the resolution list than spending more time with family and friends. Moreover, 34 percent of respondents said their worst decision of the past year was money-related.
In a challenging economy, good intentions alone might not suffice. To make their resolutions stick, Canadians need to manage their debts and plan their financial strategies, according to Courtney.
“People have dreams and hopes for the future,” Courtney says. “But making those dreams a reality requires a plan.”
By taking a closer look at their finances and setting realistic goals, Canadians can make significant strides in securing their financial future.
