Spring Into Financial Planning

By : Lora Grant, CFP, FCSI

The snow is gone and plants are sprouting in the garden. The robins are chirping and we are shedding our layers of winter clothing. Spring has finally sprung! It’s time for that great Canadian tradition: spring cleaning. This year, give both your home and your finances a good going over. As you wash the walls and the windows and tidy up the yard, spruce up your finances as well. Here are a few easy tips to help you get a fresh start.

Prune Your Debt

Construct your personal balance sheet and see where you stand. Do you have high interest credit card debt? Lines of credit mounting up? Pay more than the minimum each month and get rid of those ugly balances. Concentrate on the highest rate first and see the improvement in your financial health.

Trim Your Spending

Think before you pull out your wallet. Impulse spending erodes your bank account without you really being aware of it. Don’t deny yourself every pleasure but ask yourself if this is something you truly want and will be glad you have months from now when the days start getting shorter. If it isn’t, then don’t bother.

Dust Off Your Dreams

Where do you want to be in 5 years? In 10? In 20? Having a clear idea of where you want to be is essential in getting there. Set your goals and work towards them. Have a plan. A Certified Financial Planner helps you see the pitfalls and the opportunities that lie ahead. They will chart the best path to your dreams. They guide you on the best course for your particular situation. If you aren’t working with one yet, find one and start to build your future.

Review Your Investments

Do this annually. If you only rush in to make your RRSP contribution in February, you aren’t spending enough time taking a good look at your picture. Before the weather gets too terrific, meet with your financial advisor and examine where you stand and what progress you’re making. Are you on course or do you need to make adjustments? Are you feeling panicky about the markets? Find out whether you need to make some changes or just take a deep breath.

Clean Out Clutter

Not all investments work out as planned. Don’t cling to past mistakes hoping they will recover. Rip out any deadwood and give yourself a chance for growth.

Get a Head Start

Do some tax planning now for the year to come. Don’t wait until you’re filing your taxes: it’s too late then. Was there anything you could have done better this year? Without a time machine, it’s only next year’s plan that you can improve.

Tidy Up Your Papers

Do you have trouble finding your financial statements or bills that need to be paid? Organize this area of your life into an easy access system. Use an accordion folder or filing cabinet to get all those important pieces of paper in one spot, carefully labeled.

Plant Some Financial Seeds

Start a regular savings plan. Putting something away on a consistent basis is pretty painless and you’ll be pleasantly surprised at harvest time. It could be for your retirement or it could be for your vacation. Think what a thrill it would be to go away knowing that you’ve already paid for your trip, instead of realizing its going to be weighing on your credit card when you return.

Tend Your Chicks

While you’re putting your own nest in order, think about what you’re teaching your children. What financial example are you setting? Try talking to them about money and how to use it responsibly. Maybe it’s time for a small allowance to start learning how money can either grow or go.

Follow these easy steps and you’ll rejuvenate your financial life. Take action now and enjoy the lazy hazy days of summer knowing you are ahead of the game.