When you’re living paycheque to paycheque as most Canadians do, it can feel impossible to get ahead of the game. The importance of saving money is easy to understand, but the reality can feel much more challenging. After all, when you don’t have any “extra” money left over at the end of the month, how can you possibly build wealth and create a more financially secure future for yourself and your family?
As daunting as the task may be, there are small measures you can take to optimize your chances for long-term financial success. Here’s some practical, realistic, totally achievable advice on how to grow your money and build wealth over time.
Eliminate consumer debt
One of the most common barriers to savings is the presence of consumer debt from credit cards and other high interest sources. Not only does this type of debt eat away at your income in the form of principal repayment and interest fees, the mental and emotional stress of carrying debt can create a mental barrier as well. It may help to consider a consolidation loan to minimize these interest payments and help you pay down your debt faster and at a lower interest rate. If you’re wondering if this solution is right for you, please contact an easyfinancial branch near you to get personalized advice. We are here to help!
Set goals and be consistent
It doesn’t matter if you’re trying to clear debt, buy a house or save for retirement— if you want to reach your long-term financial goals, it pays to begin with a plan. Start by having a thorough budget that you’ve developed to reflect your income, cash flow needs and long-term goals. Make sure that savings are a part of this budget, and then set this money aside in a bank account that is separate from your everyday banking. For example, you could open a TFSA or a high interest savings account with your financial institution. If you want something simple with low fees, look for free online account options that allow a small number of transactions each month at no cost. Set up an automatic weekly or monthly transfer (as little as $10 is a good start, but aim higher) and then, be hands off! Let that money sit untouched in your designated savings account (barring financial emergencies, of course) and watch it grow over time. It takes patience and dedication, but the results are incredibly rewarding.
Look for realistic growth opportunities
If you want your savings to do more for you, look for low risk investment opportunities with an accredited financial advisor. We’re not talking about “get rich quick” schemes or jumping into the stock market— instead, look for options that involve low risk, reliable financial products that offer small but steady growth in the form of interest or even dividends. This might mean investing within a TFSA or putting your money in a specific savings account with low fees and higher interest.
Create more income
When all else fails and you’re still struggling to build up savings, the answer might be creating more income. For some people, this can mean looking for a higher paying job in their field or even investing in higher education in order to earn more in the future. For others, a side hustle may create a helpful second income stream. This could involve selling handmade items, providing a service such as babysitting or dog walking, or getting a gig making deliveries for a popular food service app. Find something you enjoy doing that still allows for decent work/life balance. The idea is to supplement your income and improve your quality of life, not burn out. Understanding the difference will be key to this approach working out in the long run.
Looking for personalized financial advice? We can help.
Every individual and family’s situation is unique, and personalized financial advice can help create effective strategies to pay down debt, create a budget, increase your earnings and build wealth. It won’t happen overnight, but we know you have it in you to succeed. If you’d like to speak to a member of the easyfinancial team, please reach out to your local easyfinancial branch or easyhome branch. You can also give us a call at 1-888-502-3279. We are committed to working with you to help find solutions that best fit your income, needs and goals. You may be surprised how quickly your financial situation can change with a little help— after all, that’s what we’re here for.