What is your money resolution?

What money resolution have you made for 2010?

Many Canadians are looking at 2010 as the year to reduce their debt. Most polled by Edward Jones Canada said that will be their priority. Over 35% plan to pay down their debt in 2010. Another 13% are focused on paying down their mortgage faster then required.

How will this be accomplished? Less dining at restaurants, brown bagging the lunches or perhaps cutting back on some of the exotic vacations? When a commitment like this is made there has to be a way of making it into a reality. If the goal cannot be reached then one quickly becomes frustrated and gives it up as a lost cause.

Sitting down with your insurance broker to see if you are indeed getting the best rates and examining your coverage is always a good idea. In 2010 with a focus towards spending your money well, it becomes even more important.

Do you have a cash reserve? The rainy day funds may have been used up in the last couple of years. This could be a good time to start building that back up again. It will give you some needed peace of mind. In the poll that was done it was found that 16% of Canadians are building back their emergency fund.

Paying off some of that bad debt is also a good move. Bad debt is credit cards and other forms of consumer credit. The Canadian household debt has increased by 1.6% and now sits at a household debt-to-income ratio of 145%. That means for every $100 you earn (after taxes) you owe $145. For a reputably conservative population we have gotten a little off track.

Once you have dealt with that bad debt then considering contributions to your RRSP or the TFSE is a good move. If you have extra then looking to your children and grandchildren's future with RESP or a savings account is a popular choice.

You get into debt one dollar at a time. You get out the same way, it's just not near as much fun!

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