Advisors

As we set our clocks forward earlier in the month, the weather started to warm up and it was suddenly spring! The markets have been providing us with some new growth lately as well, and although it is nice to see the balances of our accounts growing, we are always cautious about what the next few months could bring. Election years are riddled with uncertainty and although we are starting to see some 52-week high markers in the markets, we are quite sure that there will be continued volatility with interest rates and inflation in the coming months.

Time to weed the garden and prepare for the coming season. There is no better time than now to review the quarter’s results and make some changes in your portfolio. We often talk about trimming the positions that have done well, adding to those that need a boost, as well as looking for new opportunities. For those of you on spring vacation, enjoy the change of routine as we navigate through the first quarter results and plant some new positions in the garden.

Did you know that over 50% of Americans plan on making finance-related New Year’s resolutions in 2024? That is 36% more than in 2023! It’s clear that it is time to take one’s financial fitness seriously.

To get you thinking about your financial resolutions this year, here are my top 10 resolutions to consider for 2024:

1. Step on the scale – assess the situation and set SMART financial goals for the year ahead. It is never too late to assess where you are right at this moment. Pull off the band-aid and get real with your financial number right now. What could be better? Set some goals for 2024.
   
   
2. Check your subscription fees, fitness, streaming, online news reports and any reoccurring membership fees that are billed to your credit card. These small amounts could be adding up! There are cool applications available on your cell phone that track these renewal dates and amounts. Time to set one up. As Benjamin Franklin said, “A small leak will sink a great ship.”
   
   
3. Refinance higher-interest debt and find some flexible payment plans to pay down debt faster. Rates may come down in 2024, but wouldn’t it be nice to have less of a balance to pay then?
   
   
4. Budget – assess your spending habits in 2023. COVID happened in 2020, and many of us are still making up for lost time by spending on eating out and other whims and unnecessary habits. Learning to live below what you make takes practice and time. Developing a consistent habit of saving more than you make could lead to a wonderful nest egg in the future. Time to tighten the belt and re-assess which buckets you are putting your funds into.
   
   
5. Consider maximizing your RRSP contributions and TFSA accounts. There is a specific deadline for contributions coming for RRSP contributions at the end of February that could allow you to reduce your taxable income. Saving for retirement early means growing your money with compound interest, and battling inflationary costs will enable you to diversify your portfolio over time and mitigate some risks along the way.
   
   
6. Start to build an emergency fund. We all experience the urgent need for cash once in awhile. This is a separate bucket of cash that you put away for that unexpected expense. This doesn’t have to happen overnight; you just need to start today to form the habit of saving each month until it starts to build up.
   
   
7. Check those credit cards. How many do you have? How many do you really need? “The heir and the spare” is my rule. Find one that gives you either airline points, if that is your passion, or cash back on a percent of what you spend. If you have more than two credit cards, you need to consider why. These affect your credit score, as even if you don’t use them, they are available credit amounts to you. Cyber criminals are preying on these unused, ignored cards. Any additional benefit you received by signing up is long gone. Part ways, close these accounts and notify the credit bureau that you no longer have them.
   
   
8. Look for family cell phone plans, explore your usage and ensure that you are not paying for data unnecessarily. Cell phone bills are one of the largest expenses that households see in a month. Costs can vary if you have more than one user in your home. If you are travelling, there are some reputable firms from which you can purchase electronic SIM cards that are very affordable and much less expensive than using your data from Canadian telecommunications companies. You buy the card before you leave the country, activate it with Wi-Fi when you arrive and, voilà, you have an affordable plan while you travel while still benefiting from Google Maps!
   
   
9. Leverage regular customer applications. Do you buy a Starbucks or Timmy’s everyday? If you do, then you most likely know that by using the app, the corporations provide you with points that translate into free coffees along the way. There is no cost to these programs other than the firm tracking your allegiance, so this is a great way for you to save a few dollars along the way. Since you’re not giving up coffee, you may as well enjoy a free one once in awhile! This also applies to the points offered by grocery stores, airlines and many other customer loyalty programs. If you are going to shop there anyway, then why not take advantage of the discount? Personally, I am reluctant to pay for anything before considering a coupon, application benefit or discount.
   
   
10. Start today. As Martin Luther King Jr. said, “You don’t have to see the whole staircase, just take the first step.” There are many ways to enhance your financial situation, but even if you change one thing from the list above, you will be further ahead than you are today. Take 20 minutes and listen to the Financial Long Game podcast (starting January 9, 2024) and help yourself to engage in a weekly tip to grow your personal finance, investments and overall financial health.

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Shelly Appleton-Benko

Vice President, Director,
Portfolio Manager

Phone:     (604) 844-5327
Toll Free:  (888) 886-3586
Email  |  LinkedIn

Shelly Appleton-Benko is a Vice President, Director and Portfolio Manager at Odlum Brown, with expertise in strategic wealth management. She has over 25 years of investment experience, helping affluent clients build, preserve and transition wealth. Shelly’s investment philosophy focuses on high-quality companies with strong management teams and growth potential. She places a priority on owning mid to large-cap companies with dividend payment streams. You won’t find any penny stocks here! Portfolios are created with a custom blend of individually traded securities in diverse sectors listed on major indices such as the Dow Jones Industrial Average, S&P 500 Index and S&P/TSX Composite Index. Where required, Shelly maintains a fixed income portion of the portfolio by tailoring a blend of corporate bonds, preferred shares, GICs or short-term money market products. Overall, Shelly ensures you always know what you own and why. + »Learn More