Are you looking to grow and protect your personal savings? Here are three ways to work toward this goal.
1. Pay off your debts
Carrying a lot of debt is a constant drain on your finances. Whether it’s student loan debt, credit card debt or a car loan, pay it off as quickly as possible.
Start with the debts that charge the highest interest rate. You can also take steps to reduce your debt payments by negotiating with the issuer for a lower interest rate. Alternatively, you can consolidate multiple debts into a single one or transfer high-interest credit card debt to a card that offers a lower rate.
Similarly, see if you can tighten up the timeframe for paying your mortgage. You may consider switching from monthly payments to bi-weekly payments.
2. Be smart about big purchases
If you buy a television, refrigerator, bed or any other expensive product, don’t make a hasty decision. One thing to consider is whether it’s worthwhile to invest in a more expensive but higher-quality product. Depending on the item, a well-made product will last much longer than the cheaper model.
You should also find out if the item you want to purchase tends to go on sale at certain times of the year. For example, if you need a new winter coat or a pair of skis, you might be able to buy these items at a discount when they go on clearance in the spring.
3. Make sure you have enough insurance
A vital part of protecting your finances is having the right insurance coverage. Without adequate coverage, you could end up with devastating financial losses. In particular, make sure you don’t underinsure your home. Many homeowners only buy enough home insurance to cover the current value of their house or their mortgage without factoring in the higher cost of rebuilding. Speak with your insurance broker to determine your home’s rebuilding costs.
In addition, make sure your valuables are adequately covered. Consider insuring items such as jewelry, art and antiques separately with scheduled coverage.
It’s wise to review your coverage with your insurance broker on a yearly basis.
Financial planning and insurance brokerage services in Alberta
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