How To Prepare For The Changes To Wage, Taxes & Laws

With the New Year comes change which can affect our finances in many ways. Tax laws differ, wages rise and social services can change. Sometimes it's tough to know if these changes hurt or help us, which is why it's so important to have an action plan in place. If you're wondering what you can do to be ready for the New Year, we've created a list to help you prepare for the changes to wage, taxes & laws.

Emergency Fund

• One of the most basic and effective things you can do when it comes to preparing for the future is building an emergency fund. Your target should be to have roughly three to six months worth of expenses saved up. The more you save, the more recovery time you buy yourself. As wages rise in Canada, many financial advisors and economic forecasters are suggesting it could result in a loss of work for some. This might sound unnerving, but those with an emergency fund will have ample time to find new employment.

Budgeting

• We can't stress the importance of budgeting enough. Check out this amazing online tool for preparing a workable budget for your personal needs:https://www.youneedabudget.com/. You can try it for free but you need to pay for the pro version. This powerful budgeting tool shows you where you can cut down on spending and develop new habits that will help you hang on to your money.

Get Serious About Debt

• The New Year is a great time to start taking some big swings at your debt. Every day that you have debt, it costs you money on interest, so set goals for yourself and eliminate it! It's time to start making bigger payments towards your debt. The sooner you overcome it, the sooner you can start saving your hard-earned money.

If it's possible, look into the possibility of transferring your high-interest credit card debt to a lower interest line of credit. This way you can at least save some money on interest while you work to pay down your debts.

Build Your Skillset

• Increasing your value in the workplace is always a smart move. It can make your current role more secure, open more career paths and even increase your wage. The more valued you are as an employee the less likely you'll be affected by potential layoffs.

Finally, one of the best ways to prepare for any changes to our laws, taxes, and wages is to work on improving your credit. Consider a credit building program to help you do just that. Click here to find one that suits you.

All of these strategies will help you prepare for the New Year and lead you towards a strong financial life.

What are some of the upcoming changes you’re most worried about? Let us know in the comments!