Start the new year right when it comes to your finances

The start of a new year is a perfect time to set financial goals and create a plan to achieve them.

Whether you want to save for a down payment on a house, pay off credit card debt or start investing for retirement, a little planning can go a long way in helping you reach your goals.

Here are a few steps you can take to get your finances in order and start the new year off right:

1. Assess your current financial situation. Take a look at your income, expenses, and debts. Make a list of all of your fixed expenses, such as rent or mortgage payments, car payments, and insurance, as well as your variable expenses, such as groceries and entertainment. Look for areas where you can cut back, such as dining out or subscription services.

2. Set specific, measurable goals. Instead of simply saying you want to save more money, set a specific goal, such as saving $10,000 for a down payment on a house. Be sure to set a deadline for achieving your goal and break it down into smaller, more manageable steps.

3. Create a budget. Once you have a good understanding of your income and expenses, create a budget that will help you reach your financial goals. Be sure to include both fixed and variable expenses, as well as a "miscellaneous" category for unexpected expenses. Make sure your budget is realistic and that you are able to stick to it.

4. Make a plan to pay off debt. If you have credit card debt or other outstanding loans, make a plan to pay them off as quickly as possible. Consider consolidating your debt into one low-interest loan or transferring your balance to a credit card with a lower interest rate. Be sure to pay down the debt with the highest interest rates first.

5. Start saving for retirement. Even if you're not yet ready to retire, it's never too early to start saving for your golden years. Consider opening an RRSP account and make regular contributions. But be sure to take advantage of any employer matching contributions first.

6. Review your insurance coverage. Make sure you have the right insurance coverage for your needs. Review your health, homeowners, and auto insurance policies to make sure you have enough coverage and that you're not paying for unnecessary coverage.

7. Seek professional advice. If you're not sure where to start or need help creating a financial plan, consider seeking professional advice from a certified financial planner. He or she can help you create a plan tailored to your specific needs and guide you through the process of achieving your financial goals.

Starting the new year off right with financial planning can help you achieve your financial goals and give you peace of mind. You can take control of your finances and set yourself up for financial success in the coming year.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.