Every January people set ambitious New Year’s resolutions to improve their wellness. Get more exercise. Eat better. Get more sleep. Drink more water. This January, I’m noticing that more of our clients are wanting to look at the state of their financial wellbeing and wanting to talk about it in more detail – not just discuss their portfolio, but every aspect of their financial wellbeing, from savings to debt, to spending and taxes.
Personal finances have a significant impact on physical and mental health. According to a poll* conducted on behalf of the Financial Planning Standards Council (FPSC), money is the main source of stress for 42% of Canadians.
Fifty-one percent of women who participated in the study published by the FPSC state that financial stress disturbs their sleep, a situation that 40% of the men asked found themselves in as well.
Here are five ways to significantly decrease your money worries and get financially fit in 2020.
1. COMMIT TO PAYING ATTENTION
Become an expert on your financial situation and be mindful of your retirement savings, emergency savings, bank accounts, and your debt and spending. Knowledge is power.
2. ADDRESS YOUR DEBT
Make a plan to reduce the debt you are currently carrying. Just having a plan in place goes a long way to reducing the anxiety caused by owing money.
3. INCREASE YOUR SAVINGS
Consider setting up preauthorized contributions to your savings. We are here for you if you need help to set this up. For savings beyond retirement, such as an emergency fund, you can automate savings. Even small amounts every month add up so you are covered in case of a particularly rainy day.
4. DECREASE YOUR RISK
If your investment portfolio is fully managed by us, we have your risk consideration covered, however, if you are not fully managed by us and want to know more about that then contact me, we are here to help you.
If you have other financial risks beyond what we do for you, we can talk about that and can assist you with that as well.
5. GIVING BACK
Charitable giving to organizations in your community to support causes you care about not only feels good and does good but it also helps with your taxes.
Your mental and physical health are closely tied to your financial health. Please remember we are always here to help you improve your financial wellbeing so you sleep better at night and feel better all around. If you have any questions, please get in touch.