Time for Spring Cleaning… For Your Expenses!

Going through your paperwork is never fun. But forcing yourself to do so will help you follow up on your progress to better meet your financial objectives. Here are a few tips for cleaning up your finances and starting the spring season off on the right foot!

1. Review your budget

Every change in season is a good time to review your budget. Several things may have changed since the beginning of the year. Have you received a raise at work or purchased a new car? Have your objectives changed due to the pandemic? Regardless, it’s important to take the time to set your priorities and re-evaluate your financial strategy so that it reflects your reality and needs.

If you need help reviewing your budget, we have an online calculator that you can use. Try your best to eliminate unnecessary expenses (e.g., membership to video-on-demand platform is not as necessary during the warmer months). To save, use public transport or your bike and switch outings to the restaurant for picnics in the park. Consult the flyers and prepare your meals accordingly. For more ideas on how to save and cope with the increasing cost of living, consult our article on this topic.

• Re-negotiate your contracts

Taking a few hours to re-negotiate your telecommunications and insurance contracts (car, home, life and disability) could really pay off. Contact several providers and compare pricing. By pooling different services in the same place (e.g., car and home insurance), you could obtain a better rate. To determine your needs, ask yourself these questions: is your beneficiary’s name properly specified? Do you still need the same amount of life insurance as when you first signed up? You will update your account and may even put a little more money in your pocket!

• Consult your credit report

Make sure your file doesn’t have any mistakes that could affect your credit rating. To do this, visit the Equifax Canada or TransUnion Canada websites. If you find a discrepancy in your solvency report, you can contest it.

• File your income tax return

You have until May 1, 2023 to file your 2022 income tax return. But there are two very good reasons for doing your taxes as soon as possible:

– You think you’ll be getting a refund.

– You want to avoid penalties and interest in case you’re late. If you accumulated tax debt, you can make an arrangement with the government authorities. For more information, read our article on tax debt.  You can also consult our article on the impact of ECP on your taxes.

• Sort and organize your financial documents

– Organize your documents by subject in a drawer and/or on your computer. Having a filing method will allow you to find them quickly when you need them. Follow your own logic. For example, you may have general folders such as “Insurance” with sub-folders such as “Auto Insurance”.

– The CRA recommends that you keep certain financial documents for six years (more about this topic in the box).

– Shred documents that you don’t need to keep (e.g., bank statements that can easily be downloaded online.)

– Sign up for digital bills to eliminate paper as much as possible and have documents on hand at all times on your provider’s website.

• Plan your renewals

Create a financial calendar on paper or in your phone where you will enter all renewal dates for your contracts or packages. This will allow you to contact your suppliers before the automatic renewal date for your contracts and renegotiate the price.

• Review your financial objectives

Once you know where you stand and have your finances in order, you can readjust your financial goals. For example, consider planning for retirement, whether or not you have debt.

In conclusion, getting your finances in order will help you look forward to the future with more peace of mind. As summer approaches, you’ll feel lighter! Happy clean-up!