Canadians are optimistic about their financial situation in 2011 and are taking action now to make positive changes, according to a holiday survey from TD Canada Trust.

The poll found that 47% of Canadians expect their financial situation to improve in 2011. In addition, many Canadians are resolving to be better with their money in 2011 and (62% won’t wait until January to begin their new year’s resolutions.

When asked about their financial resolutions for the new year, respondents’ top three answers were:

> spend less and avoid buying things I don’t need (53%);
> look for better deals (38%); and
> build up savings to cover at least two months of living expenses (30%).

“The last couple of years have been financially tough for many, but this holiday season we are seeing a renewed optimism among Canadians about their financial future,” says Carrie Russell, senior vice president, TD Canada Trust.

Russell offers these tips to help advisors and their clients make and stick to their financial resolutions:

> Save a little every paycheque
In 2011, resolve to save some money each month. Talk to your bank about setting up an automatic transfer of a regular amount from your everyday bank account to a savings account or TFSA every time you get paid.

> Spend less than you make
“If you spend everything you earn—or more—you’ll never get ahead,” says Russell. If you make purchases with cash, keep your receipts. If you pay with debit or credit, regularly review what you’ve spent by logging onto online banking. At the end of the month, create a list of your expenses. You need to know where your money goes each month in order to determine where you can cut back.

> Differentiate between the things you need and the things you want
Determine how much you can afford to spend on “wants” by first calculating how much your “needs” will be, like rent, utilities and groceries. “Help ensure you are spending wisely by clearly identifying what you need and what you want — and then deal with the ‘need’ side first,” says Russell.

> Pay off your credit card balance at the end of every month
If you don’t pay off your balance each month, it can not only cost you a lot of money in interest charges, it could also affect your credit rating.

Results for the TD Canada Trust Holiday Survey were collected through a custom online survey conducted by Environics Research. A total of 1,004 completed surveys were collected from October 15 – 20.

IE