This is the second in our two-part series showing you how to get a grip on your financial situation.
Week Two – Completing your financial overview
Monday: Take a look at your retirement accounts:
- It’s good to review your retirement plans at least once a year and to make a brief note at the front of the file of the balance and the annual return on each account.
- Check to see if there are any outstanding decisions or actions you need to make to keep your retirement savings on track.
- Review your goals to see if there are any changes you would like to make or whether you can up your contributions and so provide for an even more comfortable retirement without undue risk.
Tuesday: Review your insurance coverage:
- Read through your car, home, medical, life and other insurance policies to be sure that they provide the type of cover that you need. For example, do you really need that prescription drug policy if you are rarely sick?
- Make a note of each policy’s renewal date and write this at the front of each file, along with the annual cost of the policy.
- Shop around to see if you could reduce your premiums by transferring to another insurance provider.
- Keep receipts for larger purchases together with your insurance files so that they are close to hand if ever you need to make a claim.
Wednesday: Review your bills:
- Set up a way of reminding yourself to pay recurring bills on time so that you don’t end up paying unnecessary penalties – perhaps a list on the fridge, memo on the computer, or alarm on your mobile phone to remind you to make payments.
- Alternatively, make a point of spending one evening on the same date every month paying off all your bills.
- Think about ways to reduce your spending on regular expenses – perhaps turn down the heating by one degree, send free text messages instead of making phone calls, cancel that subscription to the gym you no longer use or for those magazines that you rarely read…
Thursday: Review your debt:
- Are you fully aware of how much you currently owe and to whom?
- List your debts by category and how much you owe in each.
- Make a written note of how much interest are you paying on each debt.
- Make a written note of how often you are making (or not making) payments.
- Think carefully about which debt you should aim to pay off first.
- Is there any way for you to speed up debt payments and so become more financially secure?
- Think about ways of consolidating your debt payments and reducing interest rates – perhaps by refinancing or taking out a second mortgage. Take a look at https://bestmortgagemontreal.com/mortgage-refinancing/ or contact us to find out more about how our brokers can show you how to reduce your debt payments.
Friday: Plan your budget:
Now that you have all the numbers fresh at hand it is time to compare your outgoings with your family income.
- Make a budget and try to follow it to see if there is any way to reduce spending without adversely affecting your lifestyle too drastically.
- Any spare income can be invested in speeding up your debt payments or even invested towards your retirement plan.
So we have arrived at the end of week two and now you should have a pretty clear picture as to where you stand financially and what areas you can work on to improve your situation.
If you have discovered that you are spending far more on debt payments and interest than you would like and would like to think about consolidating all those individual payments into one single payment at a lower interest rate, talk to our expert brokers at Best Montreal Mortgage.
Our professional advisors are familiar with the many different lenders in and around Quebec and can help to find a low-interest financing package or mortgage appropriate for you and your personal situation and at the same time show you how to save on the regular expenses involved in buying a property.
Telephone 1 (514) 994-1030 or 1 (514) 819-9181
or contact us by email at firstname.lastname@example.org to find out more.