Prepare the novelty hats and sparkling beverages, because 2016 is on its way out. While many of us have felt like the year (at least in popular culture) has just been one piece of bad news after the other, the end of the calendar provides an excellent opportunity to make new plans, organize yourself, and make sure 2017 will look bright for your personal financial planning efforts.
Take the time to create a financial end-of-year checklist. Financial planning is composed of many elements, and putting them all out in front of you so you can see what’s been done and what needs doing will help demystify the processes that create the big picture of your financial health. This list can include things like a review of your net worth, outstanding debts, investment or RRSP contributions, and charitable donations.
It’s also advisable to take a look at your liquid cash reserves: how long of a duration of your average living expenses could you cover with available cash, if necessary? If you’re not sure, take a look at your monthly expenses vs. your income. If your emergency fund looks low, consider revising your spending and saving practices and tools in 2017!
The only way to plan to fail is failing to plan! Keep this in mind as the New Year approaches, and make your financial planning for 2017 the springboard for a productive year.