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Steven Noble
Editor, Internal Publications
p. 403.440.5692
e-mail: snoble@mtroyal.ca

Fred Cheney
Media Relations Officer
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e-mail: fcheney@mtroyal.ca

 

Yes, people are packing into gyms to uphold their new year’s resolutions of becoming more physically fit for 2010 — but many have also resolved to be more financially fit.

Jim Fischer — associate professor and chair of Financial Services, Supply Chain Management, Insurance — says getting your money in shape doesn’t have to be difficult.

“Simple things do work best,” says Fischer.

“For anyone who has financial concerns and goals — you have to focus on resolving the concerns first.”

Bissett School of Business professor Jim Fischer, says your financial future is in your control. There's no time like the new year to be proactive about your future.

Dealing with debt

Fischer suggests those who are carrying too much debt or who don’t have enough discretionary money at the end of the month should be concerned.

In the current economy, it is important to better control your spending and pay down your debt, especially consumer debt with high interest rates.

Step 1: For one month, record every penny that you spend.

“Until you know what you spend it is difficult to budget,” says Fischer.

“You may be surprised at what you are spending on little things such as coffee.”

Step 2: With your new knowledge, look at what are “needs” and what are “wants” — paying the gas bill is a need, buying a Caramel Macchiato daily or a new iPod is a want.

“Pay down your debt rather than spend on wants.”

Step 3: Be disciplined — stick to your budget.

To help spend less, review the credit cards in your wallet.

“No one needs more than one credit card,” says Fischer.

“Store cards are abysmal. No one wins with those except the stores. You can win with a major credit card — by earning reward points — if you pay it off every month.”

Planning for the future

Providing general financial advice is difficult because people have individual needs.

Saving for the future looks much different for a 30-something with no children, a 40-something with two teenagers, and a 55-year-old whose children have left the nest.

But in all cases, Fischer says savings should be considered a fixed expense.

“Making a consistent monthly payment is a simple, but effective way for every person to have a foot in a volatile market.”

If you’re not comfortable making your own investment decisions, get the help of an expert.

“In most cases your bank can help you. You can have an automatic withdrawal set up that goes directly into an investment account that is suitable to your needs,” says Fischer.

For those who prefer independent expertise, Fischer has some advice for finding the right advisor.

“Go in with an idea of what you want from your financial future.

“Does this person listen to you and your wants or from the start do they want to sell you something?”

Holiday funds

By all means if you received money as a gift over the holidays, adding it to your savings or using it to pay down debt is a great idea. However, it is the holidays.

“If you are given money at Christmas to buy something nice — go ahead and buy something nice. You can live, just live within your means,” says Fischer.

— Anika Van Wyk, Jan. 14, 2010