Canadians’ Top Financial Goals for 2020

For the 10^th straight year in a row paying down debt is the number one priority Canadians have for the new year, according to a recent report from CIBC.

Paying down debt was the highest-ranking priority (21%) of the respondents surveyed.  Followed closely by keeping up with the bills (18%), growing investments or wealth (13%), saving for a vacation (8%) and saving for retirement (8%).

More than two-thirds of the people surveyed said they held back from borrowing money in 2019 to avoid going further into debt.

Although most respondents (78%) felt paying down debt was more important that building savings, 33% expressed concern the impact it would have on their savings if they focused only on debt reduction.

The survey also uncovered that only 32% of Canadians feel confident about their finances, this is down significantly from last year’s survey 41%.

Additionally, the report stated of the Canadians surveyed 71% are concerned about the rising costs of household goods.  More than half surveyed (55%) were concerned about a possible recession in 2020.  Other concerns included the low Canadian dollar (30%), low wages and lack of growth (29%) and of course household debt (26%).

Eliminating Your Debt

Earning a good living is no guarantee of financial security; it only determines the size of your pay cheque, not what you do with it.   Money is a limited resource.  We have access to far more ways to spend money than there are ways to earn it.  It will never matter how much you make if you never keep enough of it on hand to do the things you say you really want to do in life.

Cash flow planning is not a budget and it does not replace the Financial Plan you already have in place.  It is a process meant to maximize your financial behavior so you can get the life you want with the money your already have.

You gain options when you exert more control over you money.  A cash flow plan is about choice, and it is designed around how you already spend your money. 

If you are ready to direct your financial future instead of just reacting to life as it happens, you are ready for a cash flow plan.  Remember, it is not an all or nothing approach, it is an ‘only things that matter’ approach.

This year make one of your New Year’s Resolutions be:  Take control of my finances.  Once you do that, the possibilities are endless.  Contact me to get started.

Happy New Year!

Tracey

Source:  Original article by Maddie Johnson, posted 01-02-2020 on Advisor.ca