HOW are you coping with your holiday hangover?
Did you eat, drink and/or spend too much? You probably didn't feel too bad at the time - it was all in the holiday spirit, right? - but now you feel guilty because perhaps you are a bit overweight in the body and underweight in the bank account.
OK, it's time for an attitude change, from negative to positive thoughts. You can't change the past but you can certainly focus on the future.
Recovery time is now. Whether it's your health or your finances, it's never too late to improve your situation.
Start with something you are likely to accomplish. For example, choose an effective yet simple action (e.g. to save money, pack one or more lunches a week instead of eating out; eat dinner out once a month instead of once a week; cut up or lock away your credit card(s); decide to spend on experiences rather than things; don't put yourself in unnecessary spending situations).
This financial - RRSP and income tax - time of the year offers you an ideal opportunity to make positive moves. For example, even borrowing to make an RRSP contribution could make sense provided the loan will be paid off by the time you get your tax refund.
Then use some or all of the refund to pay down your most expensive debt and/or start your RRSP contribution for the 2013 tax year.
The easiest, most effective way for most people to improve their finances is to set up an automatic savings/ investment/debt reduction program - (1) having their financial institution automatically transfer money every week (payday, month) into that program, and (2) adjusting their spending to live on what's left (without borrowing). If you need a nudge, enlist the help of a family member, friend or professional planner. My adult son regularly "nudges" me to do the right thing in a wide variety of non-financial areas, for which I'm always grateful.
Don't waste time or energy regretting the past, invest instead in your future.
Mike Grenby is a columnist and independent personal financial adviser; he'll answer questions in this column as space allows but cannot reply personally - e-mail [email protected]
