Starting the Money Talk Before Getting Married

You just got engaged and you are giddy with excitement for the bright future that lies ahead of you. You think of wedding plans and baby names and where home sweet home will be. But before you go through all those fancy stuff, let us get dirty and practical -- start the money talk with your soon-to-be better half.

Talking about money can be the most unromantic thing but this is something that you need to thoroughly discuss. Being married means that you have to share whatever you have with your partner and it is important to know the situation you are getting into and be able to come up with your ground rules as a couple.

Be as open and honest as you can regarding your financial situation.

When you get married, everything is conjugal unless you whip up a prenuptial agreement. This means that his property will be your property and his debts will be your debts. Knowing your partner’s credit score will help you prepare for whatever future financial plans you are envisioning together. Also, make this conversation a venue for both of you to seek solutions if there are problems and not to find faults so as to always keep the (financial) communication lines open.

Discuss your spending habits.

Both of you may have different habits when it comes to spending. You may be fond of using your credit card because you like how convenient not to carry cash around while your husband-to-be likes to whip out cash. Discuss the pros and cons of each and find a middle ground on how you will be dealing with your future finances. You will be doing a lot of spending together such as paying for the bills or getting that weekly grocery so be sure that you are on the same page on how you would want to handle these expenses.

Plan, plan, plan.

Part of planning is to knowing your cash flow. At this point in time, it is imperative that you know how much one can contribute to the household budget. The next step to knowing how much you both have is to lay out a plan on how you will be spending them - will investments be part of your budget? Will you be already setting aside money for your future babies’ school fund? It is important to be very clear about these things so that you don’t fall into the trap of debt in the future.

Building a life together can be very exciting but it also comes with great responsibility. Start your future with a clear plan on how to reach your financial goals and work with your partner in achieving them. This way, money will not be a source of conflict in your relationship and is one thing off the plate as you deal with the bliss and challenges of married life.

Recovering from a Lavish Holiday

The Holiday season is always associated with big spending. Some people would splurge on a holiday vacation while others would spend the season with family and friends, partying and exchanging presents.

Many of us feel that Christmas bug making us spend more than the usual and it is no surprise that we find ourselves a little short on resources when the New Year comes. If you find yourself in this situation, it is time to review the way you spend and find ways on how to recover from this lavish time of the year. Let us give you some tips on how to gain some extra moola when the New Year sets in.

1. Throw a garage sale. The start of the year is the perfect reason to do some closet cleanup and sell the things that you no longer need. Do you have clothes that you haven’t worn for more than a year? Sell them! Do you have items you have never used that just add to your boxes of clutter? Sell them! Always remember that your trash may be somebody else’s treasure. Find your old and unused thingamajigs a new home and earn yourself some bucks!
2. Challenge your creativity and sell some crafts. The New Year is a good time to channel your creativity. Create some handcrafted materials you can sell to your family and friends. Most people look for calendars and planners that are suited to their lifestyle at this time of the year. There are many big entrepreneurs now like Passion Planner who have started with a small backyard idea and have propagated it to become world-famous. Who knows? Yours will be the next big thing!
3. Cook yourself some dinner. If you find yourself buried in credit card bills because of your holiday spending, limit eating out until you can pay off your debt. You can save yourself a lot of money by preparing home-cooked meals and avoiding expensive restaurants in the meantime. Brush up on your cooking skills by learning great recipes and cooking techniques through the Internet. Google is your oyster.
4. Engage in leisure activities -- for free. Yes, you can. Instead of going to the movies this weekend, why don’t you take your kids for a visit to a nearby library? Or if you want something more physical, take a walk or ride a bike around the neighborhood. There are many activities that you can do without necessarily spending some cash. You just need to be creative.

These are just some of the many things that you can do to recover from a holiday spending hangover. However, it is best to always plan your cash flow ahead so that you don’t break the bank when the season is over. If in any case you still find yourself in a financial bind, there are payday loan companies that can offer you a quick solution to your problem.

GoDay, one of the trusted payday loan companies in Canada, offer flexible terms and instant decision for your application. As a member of the Canadian Payday Loan Association, you can rest assured that your application is secure, transparent and hassle-free!

Building Your Nest Egg

Retiring with enough money to live comfortably or at least to cover daily expenses will reduce the burden on family members who will start or already have their own families. Securing your financial future is not only beneficial for you, but also your family.

Building your nest egg or retirement fund early gives you enough time to recover any losses your investment may incur and make it as large as possible to live comfortably. It is never too late or too early to start planning for retirement.

What are the different ways to secure your financial future when you retire?

Financial Planning

Treating savings as a monthly expense makes it easier for you to put money aside. Deducting a part of your salary and putting it in your retirement fund keeps you from spending it.

There are other ways to save money and build your retirement fund. Reducing the amount of excess expenditures like consumer goods, dining out and going out frequently. You are not getting any younger, and you do not want to be paying debt a few years before or during your golden years. Living simply as you age will allow you to keep a comfortable lifestyle without burdening the people around you.

Portfolio Diversification

Keeping your savings in one investment runs the risk of you losing everything or losing a substantial amount if it fails. Asset allocation is a term you must remember as you age. It will guide you on which investments are worth pursuing and which ones to avoid.

Asset allocation factors in your age and risk tolerance. While you are young, you can be aggressive and take risks with your investments. Once you age, you have to weigh your options as you might lose a substantial amount of your savings if you take too many risks. Consider if your assets need to grow or generate profits as you build your retirement fund.

Retirement Plans

There are different plans that help you plan your retirement. Banks and insurance companies have a variety of options that help you start building your nest early or a few years before you retire. These plans may require you to pay a premium to fund your retirement plan.

Consult with your financial advisor to determine the best course of action and the ideal ways to build your retirement fund at a young age. The conservative approach is to save, but idly saving money will not make your money grow the way you like.

Tips for Buying Smarter

It is start of another year and you may have rounded up some resolutions already. Some would want to lose weight; others want to embark on a new career. Whatever your goal for 2016 is, there is one thing that we are sure you would want to include in your list: how to have more money.

There are actually two ways to have more cash in your wallet: you either spend less or earn more. Now, this post is not about the stock market or where you should invest your money. Our focus for today is on the other side of the coin: how to spend less. How to do that? Well… you just have to buy smarter.

Many of us fall into the trap of convenience. Anything that is convenient will require us to spend more cash. Compare cooking your own dinner versus dining out in a restaurant. We are sure you’d spend more on the latter. The same is true with getting an item off the rack and making a DIY version of it. The main difference is that you’d have to spend more effort in handcrafting household items by yourself than just pulling it out from IKEA.

While it is not bad to enjoy the pleasures of these convenience products, some of us might encounter some financial pothole along the way and it would require you to tighten the belt so that you can augment for all your household expenses. One way how to help you save more money is to buy smarter. Let us show you how:

1. Make use of those coupons. This is a no-brainer but many of us ignore those sweet deals from coupons we receive everyday. Just make sure that the coupons give you the best deal and wouldn’t trick you into buying things you do not really need.
2. Buy from local suppliers, farmers and vendors. Assuming that their goods are locally produced, you would be saving some bucks compared to buying from large supermarkets.
3. Allot one day to check out your neighborhood grocery stores and compare their prices. While the difference may seem small, savings on each of your grocery item can stack up to a significant amount once accumulated.
4. Make a list before doing your groceries and stick with it. Many of us want to hoard items we do not really need. Sticking to your shopping list not only saves you time but money as well.
5. Buy store or generic brands. Try some of these items and see if they serve their purpose. If you are satisfied with them, there is no need to unnecessarily spend for the more expensive stuff.
6. Buy energy-efficient appliances. While some may be more expensive at the onset, energy-efficient appliances actually save you money in the long run by cutting up your monthly consumption.

These are little things that you can do that can generate a big impact on your monthly household budget. Practice smart buying all the time. This way, you can save more by spending less.

What is a Payday Loan?

Are you in financial trouble? Getting out of debt is a difficult and daunting task for most however, there is a light at the end of the tunnel. Applying for a payday loan is one way to help you get back on your financial feet.

What is a payday loan?

Payday loans, cash advances or cheque loans are short-term loans that you must pay on your next paycheque. These usually have three distinguishing characteristics:

1.    Approximately $500 or less

2.    You must pay them when you get your next pay cheque

3.    You must provide creditors access to your chequing account or write a cheque for the entire amount in advance that they can deposit when the loan is due.

Most lenders have their own parameters when offering clients this type of loan, but they are generally very flexible. Several creditors provide online payday loans because of its convenience and accessibility. Clients take this option because they do not have to spend extra time and money leaving their home or work to get a loan.

Despite common claims, creditors do not generally lend money irresponsibly; they must get a guarantee from a debtor that he or she will get a job or if their current work is enough to pay for the loan they apply for.

What are the benefits of getting one?

This financial service has several advantages that will enable you to recover from your current financial situation. By applying for a payday loan, you can get cash within a few days or 24 hours. This fast and easy access to cash provides you with the relief you need to overcome a difficult financial situation. With the money you get, pay for immediate utility bills, debt, credit cards or others.

You also avoid incurring a penalty with this type of loan because you can start paying on time again. Late payments affect your credit score negatively as it shows you lack the financing to keep up with your debts. This enables you to rebuild your score and earn the trust of other lenders.

With this loan, you do not have to dip into your savings when an emergency arises such as medical and hospital bills, car breakdowns, house renovations and other similar expenses.

Who can use this loan?

Anyone with a steady source of income and a chequing account can get a loan. However, debtors who do not have savings accounts or credit cards apply for this type of loan. Many creditors who provide this loan do not require a credit check, so people with no credit or who have credit problems often turn to this financial service.

Getting Out of Debt in 2016

Is it possible to be debt-free? This is a question asked by many Canadians as they get older, get married, have kids, get sick, or purchase a place of their own. This may seem unreal to some, however, it is real and possible, only if you make smart financial decisions.

Pay More than the Minimum

It is tempting to pay just the minimum of your outstanding debts. However, one of the fastest and best ways to get out of debt in 2016 is to pay more than that. With the minimum, you might just be paying off interest and not the principal amount. It might take you years to pay off that loan or credit card. If you can, make it a point to pay beyond the requirement.

Spend Less

This is a common sense thing to do for people who want to get out of debt. Spend significantly less than you make to pay off debts faster. Many get into and stay in debt because they keep buying or spending on things they do not need with money they do not have. A credit card is both a good and bad thing to have, because it allows you to pay for things without dipping into your savings. However, it can be bad because you feel that you have an endless account where you can spend whenever you want.

Get Rid of Expensive Debts First

One way to pay off debt is to pay the biggest one first and pay the minimum amount for the rest. This enables you to breathe easy and gradually become financially flexible as you slowly pay off all of your debts. Seeing your progress will keep you confident in becoming debt-free in 2016.

Get a Second Job

For those who want to pay off debt quickly, getting a second job or working overtime or extra shifts gives them the extra money they need. Concentrate all the money you make to debt repayment. This aggressive method might not be for everyone, but it is effective. As soon as you pay off debt, start scaling back and relax.

Get a Consolidation Loan

A consolidated loan turns several payments into one at a lower interest rate. This is an ideal first step to get out of debt and monitor where your money is going.

Payday Loans

Payday loans provide quick financial relief until your next paycheque. This gives you time and extra money to pay off outstanding credit and still have enough to pay for necessities.

These steps are a rough guide to help you get out of debt in 2016. Start paying off debt as early as you can to be financially stable before you retire.

Saving Versus Investing

Saving and investing are related but independent approaches that enable you to secure your financial future. Although both are crucial for success, some people fail to balance them appropriately.

Saving

Saving is a conservative approach to growing wealth or building a nest egg. In essence it amounts to taking cash and keeping it in a safe and liquid account or security. While the interest paid on savings is relatively low, you have very little chance of losing money. GICs are a great example of a low risk but low interest investment option.

Investing

Put simply, investing usually refers to the process of using cash to purchase an asset that you believe will create a safe and acceptable return over time.

An investment can be as simple as investing in individual stocks and bonds, or buying groups of pre-selected stocks or bonds through mutual funds or exchange-traded funds. Mutual funds and exchange-traded funds are often used by investors who don’t have a strong understanding of the markets, since a more savvy investor oversees the management of assets.

Even with a savvy investor, investments are hit or miss, and often take time and a lot of effort to bear fruit. While the market generally goes up over time it can decline for long periods of time before reaching new highs. As a result, investing is almost always a more uncertain, yet often more rewarding way of growing your wealth.

Saving Versus Investing: Finding the Balance

Saving, no matter how conservative you think it is, must always come first as it is the building block of your future investments. Unless you inherit a large sum of money, you will probably draw money from your savings account as capital at some point in your life.

As a rule of thumb, the savings you have must cover all of your expenses like utility bills, food, clothes, insurance, loan payments and other similar costs for at least six months. With a substantial savings account, it will give you enough time to adjust your lifestyle if you lose your job. You do not want to be the person who lives from paycheque to paycheque.

Another thing to remember is that anything in your life that may need a large amount of money in five years or less must be savings-driven. Investments in stocks in the short-term are volatile as it may lose more than half its value within a year.

Saving will give you accessible cash in times of emergencies or, when you want to buy something. It also entails minimal risk as you leave it in a bank to gain interest. Investments involve a lot of risk and uncertainty, along with harder to access cash. However, an investment has a higher potential for profit compared to saving.

You will need to strike a balance between the two to secure your future and stay financially stable and debt-free.

Spending Less Time with Friends to Save. Is It Worth It?

Everyone needs a savings account to plan your future. Some people are aggressive in their approach; they work multiple shifts, do overtime, and spend most of their time at work to save. For some this is a way for them to get ahead or get out of debt, however, it has its disadvantages as it may affect your physical and emotional health. This is not an end but only a means.

Is it Worth the Trouble?

The reasons behind you spending hours at work trying to save will make doing overtime and extra shifts reasonable. If you are in debt and want to get out of it soon, it is a good decision. But working too hard can affect your relationships. You might become withdrawn, obsessed and anxious whenever you are around others because of the stress and pressure you feel.

If you are just working several hours a day and even on weekends for no reason other than accumulating wealth, it becomes an unhealthy habit. You are putting your relationships and health at risk. You might strain or even lose friendships because you no longer spend time with them. You may turn into a stranger to them because of your lifestyle change.

For people in a relationship or have families, working long hours may ruin a relationship or may not even form one. Your significant other may look for someone else or end the relationship because you do not spend enough time with them. If you have kids, they will think you do not care for them because you are always away.

Money is good to have because it buys you things and enables you to move up in life, however, if you make it your focus you begin to spend less time with people that matter.

The Balance

Saving is important, but so are your relationships. Finding the balance between working more hours to build a nest egg will take a balancing act. However, it is possible to succeed in growing your account while still maintaining a relationship with the people important to you.

Strike a balance by planning your extra shifts and overtime work ahead. Do it for a day or two a week, be there for friends or family during special occasions, and make it a point to free your schedule during holidays. There are other ways to balance saving and spending time with people who matter.

It is up to you to find the time.

Why payday loans are good for people

Payday loans are short-term loans meant to address an immediate need. These are also called cash advance loans, payday advance or salary advance loans. In some countries, payday loans have a negative reputation, there really is a lot of misunderstanding that led to this. For instance, APR or the interest rate used to calculate these types of loans are often looked at from the wrong perspective. The interest is annualize when it is only meant to be for short-term use. An example often cited when trying to explain this is how the hotel industry works. If a hotel offers rooms at $100 per night, saying that it is expensive at $350,000 per year is unfair.

Adding to this negative connotation about payday loans is that fact that some countries lack regulations and controls to govern the payday loan industry. This is not the case in Canada. Here, payday loans are governed by provincial regulations that balance the rights of consumers with the high-risk that payday loan companies take in lending.

These reasons are enough to justify the existence of the payday loan industry. But much more than that, the payday loan industry continues to exist because there is a need for this type of service. Some say that getting a payday loan is like borrowing against your future earnings. While there is truth behind that, we need to look at how credit cards work. It works in exactly the same way – spending money that you do not necessarily have in your pocket. Whether you’re buying a new pair of shoes or eating dinner at a restaurant and using your credit card to pay for it, you are purchasing something with money that is not out-of-pocket and will have to be paid for at a future date (preferably within the next billing statement). For people who do not have a credit card but have immediate wants and needs that cannot be covered ­­with the cash they hold in their pockets, payday loans are the answer.

Payday loans are also a reliable choice for people who have emergencies that may not have savings or access to any other funds. Whether it’s a need for immediate home repair or car problem that has to be addressed ASAP, payday loans can help in those situations.

Payday loans are not for everyone. There are people who need them and there are service providers that offer an honest transaction to help them when they need it. GoDay is one such company. We offer fast and easy online payday loan transactions. The process is secure and the fees disclosure is upfront. 

Smart Spending 101

Financial problems can happen to anyone at different stages in life. Learning how to spend money wisely can help you get through those tough times. Here are some tips to help pave the way for a more secure financial future for you and your family:

Make a Budget

A budget helps you monitor your daily, weekly and monthly expenses. With a budget, you can see how much you spend on necessities and wants. This allows you to assess your finances and identify which areas need work to help you save more and spend less. It acts as your guideline when you think you are spending too much and saving too little.

Your budget helps you stay focused on reducing expenses and increasing your savings. It enables you to assess your shopping and dining habits.

When Shopping…

Avoid buying on an impulse; you may end up buying too many things you do not need and clothes you will only wear during special occasions. Make sure to plan your purchases in advance to keep you within a budget when you shop.

There will always be a massive sale or discount within the year; time your shopping sprees during those periods to get more out of the money you spend. However, remember just because an item is on sale, it does not mean you have to buy it. Assess your expenses and determine if you really need to have a new pair of running shoes or a new mobile device.

Learn how to cook food; this is not only a money saver, but also a life skill you carry over whether you live on your own or when you move in with someone. Buying and cooking your own food saves you a lot of money compared to dining out most of the time.

Keep It Simple

Not buying designer clothes and avoiding eating at fancy restaurants will save you more money for more important things.

Keep your life simple by buying things you need and avoiding shopping sprees. You can splurge on some of the things you love occasionally to keep you happy.

Invest

Make your money grow by investing in stocks, mutual funds, real estate or other investments. Investing yields more return compared to leaving your money in a savings account where it will only accumulate a small sum because of the low interest rate.

These smart spending tips allow you to live financially free and have little to no debt. Consult with a financial planner to help you invest and manage debt.

Creating a Strategy for a Quick Loan Payoff

Debt, per se, is not a bad thing. Borrowing money can help you buy the house you want. You can get a new car through a loan. Sometimes, it can help you get through an immediate financial struggle. Whatever the reason behind your debt, you have an obligation to repay it.  The real trouble starts when that repayment does not follow through. You may end up in long-term debt and in a bigger financial struggle.

As such, it is important to have a good strategy for repayment -- the quicker, the better. Here are some tips to help you put together a good strategy to payoff your loans: 

Avoid borrowing more than you make

Most people swipe their credit card or get loans thinking that they can pay it later and that they expect to get a raise or suddenly see a surge in the sales of their business. You cannot live off debt and potential income; it will only make paying for credit difficult.

To make it easier for you to pay off loans, consider your income and determine if something bad happens, will you be in debt or not? The general rule of thumb is that debt at the maximum must be at 40% of what you make, even better if it is at a lower ratio.

The danger of credit is that because you do not physically lose the money or even touch it, is that it plays a trick on your mind that you have not lost any money at all. It is easier to swipe or apply for a loan than saving money and controlling your spending habits.

Create a budget and follow it

Now that you know the importance of keeping debt at a minimum level, the next step you make is creating a budget that you will follow.

Monitor your daily, weekly and monthly expenses to identify which parts of your expenditures you need to improve. Monitoring lets you know where money comes in and comes out. This may be a tedious process, but for someone strapped for cash and in debt, every cent counts.

A budget keeps your spending in check and provides you with a blueprint to keep you debt-free. It also makes it easier and faster to pay off a loan.

Know how much money is coming in

While budgeting can help you control your spending, it is also important to know where your money is coming from and when you expect to receive it. This can help you schedule and prioritize the things you need to pay for. Can you pay the electricity bill due today and the payday loan you took in Ajax out last week within the same pay period? List down your salary and when you receive it and compare it against the due date and the amount of things you need to pay for so you can strike a balance between the two.

Knowing how much money is coming in is also essential if you are sharing finances with your partner. It will help you manage your joint budget together.

Use extra cash or a big windfall wisely

Whether it’s a tax refund, a work-related bonus or maybe even an unexpected inheritance, consider using it for debt repayment. While you may want to spend that money on other things, choosing to use it for your debt payments will give you peace of mind and get you on your way to good financial health.

Can I get a payday loan with an unstable income?

The term payday loan suggest that you must be earning an income with a specific pay date to secure the loan. Getting one is easy and most providers have straightforward requirements. For instance, GoDay requires the following:

• Be a Canadian resident over the age of 18
• Have an open bank account with a Canadian bank or a credit union
• Have your own valid email account
• Provide a home or cell phone number
• Be employed and working in Canada

So the short answer is: you need to be employed and earning a steady, regular income to be able to get a payday loan. If for some reason, you are terminated from this employment and your income becomes unstable prior to being able to repay your loan, we highly suggest you give us a call to let us know of the situation. Here are some tips to help you meet your obligation to repay the loan on time when your income suddenly becomes unstable:

1. Assess where you can get the money for loan repayment. You might have a last paycheque still pending with your previous employer that you can use to pay back the payday loan. Maybe you can cut some items from your budget to have more money go towards repayment?
2. Focus on getting back on track. If job loss is the reason for your current unstable income situation, try looking for a replacement job, a part-time position or even freelance work. Freelance and part-time work means having an income, although not necessarily stable. Part of getting back on track should be knowing where the money comes from and how to allocate it to your daily expenses and other financial obligations.
3. Get the support you need. Talk to family, friends or a professional about how to get back on track after a period of financial instability. Aside from that feeling of relief you can get by talking about the situation, you might also be able to get some good advice on how to get through the tough times.
4. Talk to your lender. There is nothing worse than doing nothing about the situation. Calling your lender to discuss the issue is the first step to resolving it.

Taking on any loan – whether a payday loan or some other type – is a financial commitment between you and the lender. GoDay practices responsible lending and encourages responsible borrowing. However, we understand when tough situations make it difficult for people to repay their loan time. The key is to keep the communication line open with us so we can continue to help you.

Budgeting Tip: Holding a Garage Sale

Garage sales are one way of earning money for stuff you don't need. As the saying goes, a person's trash is another person's treasure. The beauty behind garage sales is that the items you sell will continue to be of use to someone else. Because the items are sold at affordable prices, they can be something of interest for your neighbors or other buyers. Although you may think it's pretty easy to start a garage sale, it really requires a bit of thought and effort. Successful garage sales take into account different factors, like the ideal date and place for the sale. Here are some tips you may find useful in planning your garage sale: 1.  Schedule your garage sale wisely. The best date for a garage sale is when there is a generally good weather and the time when most people have their paycheques fresh. So, the first Saturday of the month is your good bet, since people still have money after their monthly paycheque. Weekends are also highly recommended, if not a must, so more people will have time to check your sale. 2.  If possible, make your garage sale a one-day sale. This gives people the idea that they don't have all the time in the world to decide whether they really want something and tell themselves to get back to the item later or tomorrow. This is the reason why most garage sales are one-day sale. 3.  Do not sell damaged and broken items. The idea of a garage sale is to sell something you don't use but can still serve its purpose to someone else. Selling items that are in a pretty bad shape will shoo away potential buyers and make them think the rest of your items are of poor quality. Make sure your items look their best at their current states. 4.  Prepare an easy shopping experience for your buyers with simple and easy to read signs and a stack of coins ready for change.  If you sell clothes and other body accessories, prepare a full length mirror so the people can check themselves wearing the items they wish to buy. Make sure you have an extension cord on standby in case you sell electronic devices and lamps so they can be tested out and verified to be in good working condition. 5. Keep wrappers and bags ready for easy and fast packaging. Offer the option of both paper and plastic bags to package items. You may also want to recycle old magazine pages for wrapping fragile items.

Garage sales are a fun experience guaranteed to teach you a thing or two about business and finance. More than that, it’s a great way to earn a little extra money from things you don’t even use anymore. 

Taking a Personal Financial Snapshot

A snapshot can help you see what’s going on in your life financially. While you may already be doing some daily tracking of your spending or are strict with your personal budget, it also help to look at the bigger picture. Doing this once a year can help you see the reality of where you are and help you create realistic financial goals.

So where do you begin?

Start by listing down the essential numbers. Grab a pen and a paper (or do it online if you are more comfortable with it). Write down your income with notes on how it has changed over the year. If you have performance bonuses or other considerable sources of money, include this in your cashflow list.

Break out your spending lists and do a quick summary of where your monthly expenses go – mortgage/rent, utility bills, installments you are paying for, cost for school and kids’ activities, usual grocery spending, insurance payments, property taxes and other revolving credit that you foresee will be part of your spending list for the next 12 months.

Know how much assets you have in the form of savings, retirement contribution, investments and the current value of any property you own.

Next, understand your net worth. This is basically, all you own minus all you owe. Doing your lists first would help you determine this easier. Make sure that the “what you owe” section isn’t just your mortgage but also includes credit card debt, unpaid student loans and even payday loans that you may have that have not yet been discharged.

Finally, draw up a plan for the next 12 months (remember, we suggest doing this at least once a year). Include an assessment of your strengths and weaknesses. List areas where you are doing well or where you want to improve on. For example, if you feel like you have excessive spending on non-essential items, put this under your weakness list.

Review your financial goals last year and ask yourself if you achieved it. Create a short paragraph to detail what you did to successfully achieve it. If you missed the goal, think of the reasons why you didn’t and what you need to do better to reach that goal.

Set realistic goals with a solid action plan for yourself (or for each member of the family if this is for the family’s financial snapshot) for achieving these goals.