Money Habits Keeping You Poor
Managing your money effectively is crucial as you navigate through your post-secondary years and beyond. However, certain habits can prevent you from achieving financial stability and building wealth. Here are some money mistakes you should avoid:
Paying Yourself Last
It's easy to prioritize bills and other expenses over saving for yourself. Make a habit of paying yourself first by setting aside 10%-20% of your income for savings/investments before paying for bills and other expenses.
Getting Comfortable with Bad Debt
High-interest debt, like credit cards or loans, can drain your finances. Pay off high-interest debt first to free up money for savings and investments.
Not having an Emergency Fund
Life can be unpredictable and emergencies can strain your finances. Build an emergency fund with enough to cover 3-6 months of your living expenses. This will protect you from going into debt during tough times!
Not Tracking Your Income + Expenses
Understanding your income and expenses is essential for making informed financial decisions. Create a budget to track where your money goes each month and identify areas where you can cut back to save more effectively. There are plenty of FREE resources online that you can try out to find the best and most effective way for you to keep track of your finances!
Living Beyond Your Means
Expensive habits or hobbies can quickly eat into your budget. Evaluate your spending habits and prioritize activities that align with your financial goals and budget. What are some lifestyle choices or hobbies that take a big portion of your finances today?
Overpaying Taxes
Paying taxes is inevitable, but there are ways to legally minimize this! Explore tax-saving strategies such as contributing to RRSP, and RESP.
Not Prioritizing Savings
Saving money regularly is key to building financial security. Open a TFSA and automate your savings contributions and set specific goals to make saving a habit!
Read our blog post on Saving Tips & Tricks while in University!
Waiting Too Long to Invest
Investing early allows your money to grow over time through compound interest. Don't wait too long to start investing, even if you can only start with small amounts. The earlier you begin, the more time your money has to work for you.
For more tips on managing your finances effectively, check out this informative video: Money Mistakes Holding You Back.
Start making smarter financial decisions today to secure a brighter financial future!