Achieving your financial goals this year might seem like a daunting task, especially when the initial excitement of the New Year fades away and motivation starts to dwindle. It’s common for people to feel a loss of drive as they face obstacles and setbacks, especially when trying to establish new habits. If you’re committed to turning your resolutions into tangible results, it’s important to take a strategic approach. Here are four practical tips to help you stay on track and make meaningful progress with your financial goals.

1. Set Yourself Up for Success

The key to achieving any goal is realistic planning. From the outset, it’s essential to set achievable and specific targets while also preparing for potential challenges. Life is unpredictable, and things often don’t go as planned. Rather than feeling discouraged by setbacks, incorporate flexibility into your plan. Anticipate challenges you may face, such as temptations or unexpected life events, and have strategies in place to overcome them. This proactive approach will help you stay focused and more likely to achieve your financial goals, even when things don’t go perfectly.

2. Avoid Making the Same Mistakes

If you didn’t meet a goal in the past, simply trying again without making adjustments is unlikely to lead to a different outcome. Financial mistakes can be costly, so it’s important to learn from your past experiences. Reflect on what went wrong previously—did you lack preparation? Were there specific obstacles you didn’t anticipate? Understanding the factors that hindered your success can help you find a better path forward. Sometimes, it’s a matter of changing your strategy, whether that means reevaluating your goals or adjusting the way you approach them. Track your progress and be open to modifying your plan as needed. By making small changes and learning from your past mistakes, you can gradually build the confidence and momentum needed to achieve your goals.

3. Build a Practical ‘To-Do’ List

Setting resolutions often involves a list of things you want to accomplish, such as exercising daily or paying off debt. While these are admirable goals, the process of achieving them can be overwhelming if you don’t break them down into manageable steps. For example, to eat healthier, you’ll need to shop for nutritious foods, plan meals, and learn how to cook. Similarly, committing to exercise every day might require adjustments in your schedule or support from family members. If your goal is to pay off credit card debt, you’ll need to create a realistic financial plan—whether it’s cutting back on spending, earning extra income, or both.

One effective strategy is to consider not only what you should do but also what you should avoid. For instance, instead of resolving to make healthier choices, you could focus on cutting out unhealthy foods from your diet altogether. Small adjustments like these often have a bigger impact on your overall success than trying to force yourself into a rigid routine that doesn’t suit your lifestyle.

4. Focus on One Resolution at a Time

It’s easy to get excited at the beginning of the year and set numerous resolutions, but the more goals you set, the harder it becomes to stay focused. Trying to tackle too many objectives at once can leave you feeling overwhelmed, and you might find it difficult to make meaningful progress on any of them. Instead, keep it simple and focus on one resolution at a time. By breaking down your goals into manageable pieces, you’ll avoid spreading yourself too thin. Remember that significant achievements often require multiple steps, so by dedicating your attention to one goal, you can make steady, consistent progress and stay motivated.

Achieving Financial Success One Step at a Time

The New Year is a fresh opportunity to work towards your financial goals, but it’s not just about making resolutions—it’s about taking consistent action. Even if you don’t meet your goal immediately, every step you take toward it counts. The money you save and the debt you pay off are real victories, and these small successes will motivate you to keep going. Whether you’re focusing on reducing debt or building your savings, don’t let setbacks deter you. Celebrate your progress, adjust your strategy as needed, and keep working towards your financial goals. If you ever need guidance, remember that you don’t have to go it alone—support is always available.

It’s never easy to talk about finances, especially in the wake of a loved one’s passing. At a time when emotions are running high, the last thing anyone wants to think about is debt. However, understanding what happens to debt after someone dies is essential for protecting loved ones from unnecessary financial burdens. In this article, we address some of the most common questions surrounding debt after death in Canada and offer insights on how to navigate this challenging situation.

Does My Family Inherit My Debt?

In Canada, your family members generally do not inherit your debt. Instead, your estate is responsible for settling any outstanding obligations using the assets left behind. If your estate doesn’t have enough money to cover the debts, creditors will typically write off the balance as uncollectible. However, if someone has co-signed a loan or is a joint borrower, they may still be held accountable for the full amount of the debt, as they are considered equally responsible for the obligation.

What Happens to Credit Card Debt After Death?

Credit card debt is considered unsecured debt, meaning that, if you’re the sole signer on the account, no one else is responsible for paying off the balance after your death. However, if the credit card is joint, the surviving cardholder must continue making payments. If your estate has assets, those may be used to settle the credit card debt.

Be sure to check your credit card agreement to see if it indicates any additional responsibilities for family members or co-signers. It’s also important to remove the deceased person’s card information from online accounts like streaming services and shopping websites to prevent unauthorized charges.

If there are credit card rewards points, the fate of those points depends on the card issuer’s policies. Some may allow you to transfer points to a beneficiary, while others may cancel them.

What Happens to a Mortgage After Death?

A mortgage is a secured debt, meaning it’s attached to a property. If the property is jointly owned, the surviving co-owner will be responsible for continuing payments. If there are no funds in the estate to cover the mortgage, the surviving party may need to assume the loan or qualify for a new mortgage. In some cases, lenders may allow the mortgage to be transferred under the same terms or renegotiated for more manageable payments. Life insurance policies or payment protection plans may also help cover the mortgage balance in the event of death.

Does Debt Pass to My Family?

Debt generally does not pass down to family members such as children, siblings, or parents. However, there are exceptions. If you have co-signed on a loan or have joint debt agreements like a mortgage, credit card, or line of credit, those debts remain the responsibility of the co-signer or joint account holder after your passing.

One notable exception is debts owed to the Canada Revenue Agency (CRA). Your estate is responsible for paying any outstanding taxes, and the CRA can claim assets to recover unpaid taxes. Executors should consult with a tax professional or estate lawyer to ensure that these obligations are met and avoid complications when distributing the estate.

How Can You Protect Your Loved Ones From Financial Burdens After You Die?

While it’s uncomfortable, discussing finances with your loved ones before your passing is one of the best ways to ensure they are prepared. Here are some practical steps to take:

1. Choose the Right Time and Place: Have a calm, private conversation about your financial situation. Set aside time to discuss debts, assets, and any important documents with trusted family members or friends.
2. Be Transparent: Share information about your debts, assets, and plans such as your will, insurance policies, and the executor you’ve appointed for your estate.
3. Encourage Open Communication: Make sure your loved ones feel comfortable sharing their own financial situations. Discuss any potential gaps in your plans, such as outdated wills or unresolved debts, to prevent future issues.
4. Document Everything: Keep a record of important financial information, such as account details, passwords, contact information for advisors, and the location of safety deposit boxes or key documents. Share this information with a trusted individual or your estate executor to ensure they can easily access it when needed.
5. Seek Professional Help: If the conversation feels overwhelming, consider bringing in a financial advisor, estate lawyer, or counselor to guide the discussion. A professional can help ensure that all aspects of your financial plan are in place and properly communicated.

Understanding the Final Impact of Debt After Death

The key takeaway is that, in most cases, family members are not responsible for debt after someone’s death. Instead, the estate is responsible for settling the debts using available assets. However, joint debts or co-signed loans do create shared responsibility. Additionally, taxes owed to the CRA must be paid by the estate, which could affect the inheritance distribution. By having honest conversations about your finances, documenting key details, and seeking professional advice, you can protect your loved ones from unnecessary financial strain and ensure that your wishes are respected after you’re gone.

Owning a pet doesn’t have to break the bank. In fact, your furry (or feathery or scaly) companion can actually teach you valuable lessons about managing money. Whether you’re preparing your budget for a new pet or already have one, there are plenty of creative ways to save on pet care while ensuring your pet is happy and healthy. Let’s explore how your pet can help you become more financially savvy.

1. Cut Costs on Pet Food

Pets need a consistent diet, and you can save money on food by buying in bulk. If purchasing large bags of pet food feels overwhelming, consider splitting the cost with a friend who has the same type of pet. Many pet stores also offer discounts or loyalty programs, which can help stretch your budget. You can even make your own pet treats at home—simple recipes like peanut butter and pumpkin treats for dogs or tuna bites for cats are both cost-effective and fun to make!

2. Turn Your Passion for Pets into Extra Income

If you love animals, consider turning your passion into a side hustle. Platforms like Rover allow you to offer services such as dog walking, pet sitting, or even bird care. If you have space, you could even set up a private dog park on Sniffspot where pet owners pay to use your yard for playtime. Earning extra money this way can help cover your pet’s expenses while letting you spend more time doing something you enjoy.

3. Skip the Gym and Stay Active with Your Pet

Pets need exercise, which means you can use them as a reason to get moving too. Dogs require walks, and even smaller pets like cats or rabbits can inspire active play. Instead of paying for a gym membership or fitness classes, make exercise a bonding experience with your pet. Whether it’s a game of fetch, a DIY agility course, or just a walk in the park, staying active with your pet is a fun and free way to get in shape.

4. Preventive Care Saves Big in the Long Run

Routine vet checkups can seem like an added expense, but they can save you much more money in the long run by preventing costly emergency visits. Preventive care keeps your pet healthy and happy while avoiding unexpected bills down the road. Treat your pet’s vet visits as an opportunity for a positive experience and reward them afterward. Plus, using your pet’s checkups as reminders for your own health—whether financial or physical—can help you stay on top of things.

5. Get Creative with Pet Care

Grooming your pet at home is a simple way to save money. Learning basic grooming skills can help you avoid frequent trips to the groomer, while also keeping your pet clean and happy. The same principle applies to your personal care. By learning how to do simple grooming tasks yourself, you can reduce the cost of your own haircuts or other personal care expenses.

6. Budgeting for Pet Expenses

Owning a pet teaches you how to differentiate between needs and wants, and this mindset can carry over into your overall budgeting. By setting aside money for essential pet expenses—like food, veterinary care, and toys—you can stay on track with your finances. Create a specific pet budget and even challenge yourself to hit savings goals. You can treat both yourself and your pet with small rewards when you reach milestones, making it a win-win situation for both of you.

7. Join a Pet Community to Save

Connecting with other pet owners in your area can open up opportunities to share resources, like pet-sitting services or second-hand supplies. Many communities, both online and in-person, offer free or low-cost pet-related resources. Local Buy Nothing groups, for instance, often have free pet supplies available. Sharing these resources not only saves money but also creates a sense of community that can benefit other areas of your life as well.

Bonus: Affordable Fun with Your Pet

Pets don’t care about spending money—they just want your time and companionship. Instead of splurging on expensive outings or entertainment, look for free activities you can enjoy together. Take a hike, play in the park, or have a cozy movie night at home. You can also seek out free pet-friendly events like markets or festivals. Rethinking how you spend on entertainment can lead to significant savings, and it might even open the door to new connections with fellow pet owners.

Pet Ownership on a Budget: A Win-Win for Your Finances

Living with a pet doesn’t have to be costly. By following these simple, budget-friendly tips, you can save money while ensuring your pet is well taken care of. From meal planning and creative side hustles to finding free resources and making fun memories, your pet can help you improve your financial habits and lead a more mindful, fulfilling life. With these strategies, you’ll find that taking care of your pet—and your budget—can be both rewarding and affordable.

The holiday season often brings joy and celebration, but it can also lead to financial strain, especially for those already juggling credit card debt and debt repayment. With the pressure of gift shopping, hosting family dinners, and other holiday expenses, many Canadians are finding it difficult to stick to their budgets. According to Equifax Canada, a significant portion of consumers plan to reduce their holiday spending due to the financial impact of inflation and existing debt. This time of year doesn’t have to lead to a debt hangover, though. By being strategic and sticking to a well-planned budget, you can enjoy the holidays without derailing your debt repayment goals.

Here are some practical tips to help you manage holiday spending while staying on track with your debt repayment.

1. Stick to Your Debt Repayment Plan

Even though the holidays are often an expensive time of year, it’s crucial not to abandon your debt repayment plan. Skipping payments or delaying debt repayment might seem tempting, but it can lead to even more stress in the future. To maintain financial success, you need a realistic budget that you can follow, especially during the holidays. Calculate your income for the month and list all of your essential expenses—rent, utilities, groceries, and, of course, debt repayments.

Once your essentials are covered, allocate any remaining funds to holiday spending. While holiday meals and gifts can add up, consider reducing spending in other categories, like work lunches or school supplies, to free up extra cash for holiday costs.

2. Create a Detailed Christmas Shopping Plan

A key strategy for staying within your budget is to create a detailed shopping list. Think about everyone you need to buy for, the groceries required for holiday meals, and how much you can realistically spend on each category. Don’t just assign a flat amount to each person; be specific. For example, you may want to spend more on a close family member and less on a distant relative. Planning this way will help you avoid overspending.

While sticking to your budget may be difficult—especially if you’re shopping at the last minute—having a clear plan will help guide you. By knowing your limits, you can avoid overspending on gifts or holiday-related expenses.

3. Use Gift Cards and Rewards Points to Stretch Your Budget

If your budget feels stretched thin after crunching the numbers, there are ways to get creative and make your funds go further. Dig through your drawers or purse to find unused gift cards or vouchers. These can be a great way to offset some of your holiday expenses. Even credit card reward points or store loyalty points can be used strategically to purchase gifts, food, or holiday treats.

For example, if you have $50 in gift cards, you could use them to buy presents for your family or friends, freeing up some of your cash for other expenses. If you’ve accumulated points throughout the year, you can use them to reduce the cost of shopping or even convert them into gift cards for others.

4. Try a Cash-Only Approach

One of the simplest ways to keep your holiday spending in check is by going on a cash-only diet. When you pay with cash, you limit yourself to spending only what you’ve physically set aside. For instance, if you’ve allocated $300 for Christmas gifts, put that amount in an envelope and break it down per person. Once the money is gone, it’s gone—no more swiping the card.

Although credit cards offer rewards and points, the temptation to overspend can quickly derail your financial goals. A cash-only approach eliminates this risk and helps you stick to your holiday budget.

5. Involve Your Family in Budgeting

Holiday spending doesn’t have to fall entirely on one person. Have an open conversation with your family about budgets and expectations for gift-giving and holiday events. You may find that family members are happy to chip in for meals or contribute to gifts. Hosting a potluck dinner can be a great way to share the costs of a holiday meal.

By collaborating on budgeting with your family, you can create a more affordable and enjoyable holiday season for everyone involved.

6. Avoid Taking on New Debt

With all the tempting “buy now, pay later” offers and store credit card deals during the holiday season, it can be easy to fall into the trap of increasing your debt. However, if you’re already dealing with debt, it’s important to resist the urge to take on more. These promotions might seem appealing, but they often come with high interest rates or payments that will stretch your finances even thinner. If you’re already managing a debt repayment plan, taking on new debt will only slow your progress.

7. Plan Ahead for Next Year’s Holidays

Looking ahead, it’s a good idea to start saving for next year’s holiday expenses now. Set aside a small amount of money each month throughout the year for gifts, meals, and other holiday costs. Saving $20 to $50 per month could leave you with a decent amount by the time the holiday season rolls around, reducing the financial stress when it arrives.

8. Reflect on Last Year’s Experience

Before you start spending, take a moment to reflect on how the previous holiday season impacted your finances. If you found yourself struggling to pay off credit card debt in January, remember that this year’s decisions can set the tone for a better financial start to the new year. Planning and sticking to a budget will prevent you from repeating past mistakes and help you avoid the dreaded financial hangover.

Conclusion

Navigating the holiday season while managing debt repayment requires careful planning and discipline. By sticking to your debt repayment plan, creating a detailed shopping list, using gift cards and rewards points, and keeping your spending within a set budget, you can enjoy the holidays without derailing your financial goals. Involving your family, avoiding new debt, and planning ahead for next year will help you create a more financially secure holiday season—one that won’t leave you with a mountain of debt in the new year.