Good money management is important to the health and well-being of you and your family. Now is a good time to take stock and to decide on what’s important to you. Focus your finances around the things you value most. Identify personal and financial goals such as alleviating immediate financial pressures, paying for your children’s education, financing a vacation, saving for retirement, or providing eldercare. Then, assess your current situation and seek assistance to determine your net worth. This is important for tax planning purposes and in deciding what you want to leave to your beneficiaries.

Here are some suggestions from leading financial institutions to help you manage your money:

Identify financial roadblocks
Examine credit card debt and cash flow problems along with poorly performing investments or unexpected medical expenses when determining the best financial strategy for you and your family.

Establish an annual budget
List your regular expenses. Add one-time annual expenses such as property taxes, insurance, and vacations. Then, determine your annual net income. Ensure your spending is less than your income. If it isn’t, then re-align your spending with what you value.

Pay yourself first
A general rule is to put 5-10% of your pay into a savings or investment account. Start with a small amount, but start! Automatic savings withdrawal can be a convenient and less noticeable way of making this happen.

Find ways to save using small steps
Try reducing expenditures on day-to-day purchases such as beverages, snacks, lunches, cigarettes, and lottery tickets. A savings of five dollars-a-day equates to nearly $2 000 a year.

Reduce your interest charges
Consolidate your debts. Reduce the number of credit cards you have. Pay down your mortgage with bi-weekly payments. If you can’t afford to buy it - don’t!

Review your insurance needs
Insurance can protect your family by providing for income replacement, paying educational costs, paying off mortgage and other debts, and covering the cost of long-term care. It can also provide tax relief and preserve the value of your estate for your beneficiaries. Consult with an insurance specialist to learn more about the different types of insurance available. Remember that insurance needs change throughout your life, so review your needs regularly.

Prepare a Will and keep it current
A Will outlines specifically how your assets are to be distributed. Without this, provincial law determines how your assets will be distributed, which may have severe tax implications for your beneficiaries. Be sure to select an executor you trust to handle your estate in a fair manner before distributing your assets to beneficiaries in accordance with your wishes.

Choose a Power of Attorney
It is important to have someone to handle your affairs if you become incapacitated.

Create an Education Fund
Open a Registered Education Savings Plan (RESP) for your children. Each year that you contribute $2 000, you are eligible to receive a $400 government grant. 

Use Registered Retirement Savings Programs (RRSP) wisely
Contribute as much as possible as early as possible. Consider a Spousal RRSP for the lower earning spouse in order to pay less tax.

Prepare for the unexpected
Set aside an emergency cash fund of at least three months living expenses. Protect your family with life insurance. Protect your income with disability insurance.

SHOPPING SMART CAN SAVE MONEY

Eating healthy doesn’t have to break your bank account. Consider the following when shopping:

• Bulk or large-size containers can cost less per serving.

• Frozen or canned vegetables and fruit can be cheaper than fresh, especially when wastage is taken into account. Remember to rinse canned vegetables well to remove much of the salt content.

• In-season produce from farmers’ markets.

• Purchase bulk quantities of products, that you will use often, when they’re on sale.

Keep in mind that the more processed a food is, the more expensive it is, and often the less nutritious it becomes.