However, it's easy to re-focus in the new year and get your finances back on track by following a few easy steps:
- Check your net worth: To move forward, you need to know where you currently stand. You should start by figuring out your net worth. While there are a lot of calculators your can find online, all you really need is a pen and a piece of paper. First, add up all of your assets, including but not limited to, your home, savings, cars and retirement plans. Then add up your liabilities, which can include your credit card balances, loans and mortgages. Then use this formula: Assets – Liabilities = Net worth. Pretty simple!
- Check your credit: Having a high credit score can save you thousands in interest costs, not just on your mortgage, but on other debt as well. By going to www.equifax.ca, and obtaining your credit report, you can see where you stand now. I recommend paying for the $23.95 report, as it includes your score. Once you have your report, TheRedPin Mortgage Team is happy to do a free evaluation and make personalized recommendations, to improve a low score or maintain a high one.
- Set your goals: Now that you know where you stand financially, figure out where you would like to be by the end of the year. Do you want to purchase your first home? Need to move to a larger property? Are you planning to retire? By working with a Mortgage Broker and a Financial Planner, you can get customized advice on reducing your debts and increasing your savings, so you can achieve your goals.
- Monitor your finances: A plan is a great start but the real work is following it. By monitoring your progress you can make sure you are on track. Start by carving out an hour a month to review your spending and your savings, to ensure you are staying on the right course to achieve your goals.
Contact us today to discuss your financial plans for 2018!