Business & Personal Finance

(photo courtesy of workhoppers.com)

Fidelity Investment's sixth annual New Year Financial Resolutions Study found that only 31% of people considered making a financial resolution this year, compared with 43% a year ago. Among those considering financial resolutions, three resolutions remained consistent: save more, pay off debt and spend less. The survey also revealed that 42% found it easier to stick to a financial resolution than to other resolutions, like giving up smoking.

In a recent Toronto Star article Gordon Pape, well-known Canadian author, editor, and publisher of the Internet Wealth Builder (IWB), The Income Investor, and Mutual Funds Update, suggests four very simple, no-cost steps that will make it easy to keep your financial resolutions.

Create a budget:

Use free online budgeting tools, such as the one provided at the Financial Consumer Agency website, to keep track of your expenditures. Enter your information into the spreadsheets and see where your money goes. Try to adjust to your spending habits and watch your saving grow.

Review your RRSP:

Keep track of how your RRSP is doing. If it didn't gain at least five to six per cent last year, Pape recommends making some changes. Move from underperforming securities to those with a better return.

Review your TFSA:

TFSAs can be invested in a wide range of eligible securities, not just GICs or high interest savings accounts. As of Jan. 1 you can add an additional $5,500 to your TFSA. By doing just a bit of research on what kinds of investments you can make you will see your money grow faster, with the added satisfaction of knowing those gains will be protected from Revenue Canada.

Get to know your pension plan:

If you have a defined contribution pension plan you should become familiar with the funds in which you are invested. This kind of plan is generally directed by employees from a selection of investment options available within the plan and puts all of the investment risk on the employee. According to Pape, it is worth the time to study all the options available to you and to put them together in a well-balanced portfolio.

The Toronto Public Library has numerous books and ebooks, DVDs, and financial newsletters that can help you get started on achieving your New Year's financial resolutions: