Canadians have faced one of the most challenging economic periods since the Great Depression in the form of the COVID-19 pandemic. Fortunately, the Canadian government moved to provide unprecedented income support to the millions of citizens who had their income disrupted in this crisis.
Regardless, many Canadians are still financially reeling. Today, I want to look at three ways to improve your financial position this year.
Improve your credit score
This is a big one, especially for young investors who are gunning for home ownership in the years ahead. Digging yourself into a hole with your credit score is easy. Climbing out is harder, but very rewarding. How do you improve your credit score? Simple, build and pay off any outstanding credit. Those just starting to build their credit should start with easy-to-manage credit products.
Don’t let your savings stagnate
Canadian saving rates have surged during the pandemic as leisure time has been cut away. You should look to put that extra cash to work in a red-hot stock market.
Pay down your debt
This is often linked to improving your credit score. Household debt in Canada has soared to historic highs in recent years. Low interest rates have made this a friendly borrowing environment. However, a high level of debt is increasingly difficult to manage over a long period of time. Moreover, it can freeze you out of desirable goals like home ownership. Once again, look to build a budget and construct a plan to pay down your debt in 2021.
