The start of the new year is the perfect time to set some financial goals, and putting together a budget can be a great first step. For more on that we’re joined by Debora Brady.

When planning for the year ahead, how important is it to plan for your financial well being?

The New Year is a perfect time to take stock of where you’ve been and where you want to go–and a financial plan is an incredibly important part of that process. Setting specific, measurable goals for your finances is a great first step to creating your financial plan. That includes creating a budget and plan that can help guide your spending and savings throughout 2022.

What should we keep in mind when we’re building a financial plan–where do we start?

A strong financial plan should be tailored to you. The perfect place to begin is to sit down and outline your financial goals. So whether you’re planning on purchasing a car this year, saving up for a wedding, or paying off your holiday credit card debt, identifying goals early can help you plan for the year ahead. I also recommend that people take the time to understand their current situation. This can be done by reviewing bank statements and jotting down your various expenses over the last few months, and by using tools like Coast Capital’s Money Manager that automatically categorize your spending. You can use all of this information as a starting point to create your budget and consider where you might be able to make some changes. Also, when developing your budget and your plan, try to be as specific as possible with measurable dollar amounts so you can monitor your progress better.

What are some examples of financial resolutions we can all set for the New Year?

One of the main objectives to resolutions is to build better habits and routines. A common resolution is to reduce spending–so committing to “no spend” days once or twice a week can be a great way to help you identify what spending is actually necessary and how much you do out of habit. This can mean you don’t go out for coffee and you make it at home. Or you don’t order dinner online or you avoid online or in-person shopping. Another way to cut spending is to look at unused subscriptions. Do you have an unused gym membership or apps that you’ve forgotten about, or streaming platforms that you don’t use as often–you may be surprised how much you spend on subscriptions you don’t use all too often. If you’re working towards a major purchase or a financial milestone I would consider setting up dedicated savings accounts and automatic payments that flow in each month. Small changes like this can really make a big difference.

How do you stick to these goals throughout the year?

My main recommendation here would be to aim for small improvements. For example breaking your bigger goals into smaller resolutions and consider how these actions may actually change your life down the road. Think about why you’re making these goals, and what your motivation is behind them. We’re two years into a pandemic and there’s a ton of uncertainty that goes along with this–so be sure to give yourself flexibility and be prepared to make adjustments along the way.