CALGARY , May 26, 2014 /CNW/ - Now that spring has arrived, many Albertans are spring cleaning their homes. People should also consider adding finances to their spring cleaning list, as they could always use a good dusting. Spring can actually be the best time for many people to evaluate their finances.
By spring time, most people have received a measurable amount of financial records that can help them paint a clear picture of their financial position. At Money Mentors, we advise Albertans to dedicate some time to spring clean their finances by:
Evaluating Debt Load:
It is important to know how much money you owe and who your creditors are. You should take note of how much you are paying every month and the interest being charged. Also, look over all your bank statements to make sure unfamiliar charges are rectified. When you have all of this information it will be easier to figure out where you stand financially and the necessary steps you need to take.
Developing a Budget:
When creating a budget, revisit it often to make sure you are still on track. If new financial obligations arise, incorporate them into your budget to make necessary changes. Also, create financial goals and make sure they are SMART: Specific, Measurable, Attainable, Realistic and Time specific.
Adopt a new behaviour, SAVING. Spring time is the best time to start saving for your children's education or an emergency account. You can allocate any extra income like a pay raise, tax refund or money saved from cutting down on other expenses to your savings account.
Additionally, you can put some money away today for a stress-free tomorrow with:
- Registered Education Savings Plan (RESP): Tax sheltered plan that is designed to help you save money for your children's education.
- Registered Retirement Savings Plan (RRSP): Save money for your retirement.
- Tax Free Savings Account (TFSA): Tax free savings account provided by the government.
Organizing and keeping your finances up to date may be a challenging task, but the reward of financial independence is a great one. Having your finances well organized guarantees a less frustrating and stress-free life. It also prepares you for financial security in the years to come.
Money Mentors is the only Alberta -based, not-for-profit credit counselling agency. Through a number of services, we help families and individuals recover from financial crisis and move forward. From credit counselling and money coaching to retirement planning and community financial literacy, we are contributing to a healthier financial future for the entire province.
SOURCE Money Mentors
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