Do You Need a Lesson In Money?

Do you have money goals? Or are you finding that you are struggling to keep track? Here at GoDay we are all always looking for ways to help you save more money but the question is – what are you willing to do to put your financial future first? We also understand that life happens. Expenses pop up all the time and there are financially more stressful times of the year where it is easy to lose track of your spending, and where your money is going, which is why we ask – how do you keep track of your finances? And it is in hard money times like when you have lost track that people turn to GoDay for financial assistance. Maybe you think you do not need a lesson in money but there are many signs that could indicate otherwise. Take a look at the budget you have in place, what your savings account looks like, and if you are prepared if there was ever to be a financial emergency. Are you confident in your finances? Everyone has their own way of how they like to manage their money, which is why we share some of our favourite money lessons for you to learn from.

You Have Gone Over Budget

What is one key indicator that you may need a lesson in money? You are going over your budget! We talk a lot about budgeting here at GoDay, and that is because we want to help you get back on track financially. And that includes having some kind of budget or money tracking system in place for your finances. But we also know that everyone has different financial priorities and that’s why we understand that sticking to a budget or some kind of financial plan can be tricky for some people. And these days, spending money can be easier than saving money. But it is being able to identify why you have gone over budget in the first place that will be the only way you are able to learn from these money mistakes. Did you put too many purchases on your credit card thinking you would worry about it later? Did your rent cheque bounce because of insufficient funds? Are you struggling to pay all your bills this month or are you only paying the minimum? It is cases like this that not having your money managed will end up costing you more in the long run. When it comes to creating your financial game plan you want to keep track of what money is coming in and what money is going out, which can be overwhelming, and make you feel like saving is impossible. But there are so many different tools and ways to keep track of your finances which is what will help you manage your money easier. Some people prefer the old school way of keeping every single receipt and balancing their budget at the end of the month, the paper and pen way. But apps and technology these days have made keeping track of your finances easy to do right in your pocket. Your first lesson in money should be about finding out what works for you and sticking to it.

Save For a Rainy Day

Do you know what is in your savings account? Are you someone who can save for a rainy day? According to CIBC’s 2017 survey results, 85 percent of Canadian’s agree that they should be saving more money than what they currently are. In fact, 79 percent of respondents aged 35 to 54 said they worry about not having enough funds to retire when they want to. This is why starting a savings account can be a good money lesson. You may not be thinking about retiring anytime soon, but setting a goal for how much you want to save in your rainy day fund will help you start to manage your money. Saving money can also be for something like the vacation or trip you have wanted to go on, or an item you have wanted to purchase for a long time. It is good to want to save for that something special! By having this kind of financial discipline, you will know that you are capable to save money when it matters. To make your money goals seem more achievable, set out smaller goals to help you achieve that overall goal. For example, figure out exactly how much you can put into your rainy day fund every paycheck. Direct deposits and automatic payments shouldn’t have to just be for bills, why can’t it be for adding to your savings account every paycheck? When setting up these automatic transfers it gets rid of the hassle of having to put money away and constantly checking up on your accounts. And before you know it, you will be saving without having to “try” and save.

Bank Accounts That Work For You

The first step when it comes to saving is an easy one. It is to open a savings account and go from there. When you’re putting all your money into one account, it can be easy to spend it on whatever, whenever. And if your “savings” are sitting in that same account, it’s hard to know what you are saving, versus what you are spending. That’s why it’s important to keep your savings separate. There are different types of accounts out there that you can open to help you save money. When it comes to choosing who to bank with, in Canada, there are only a handful of options. No matter who you chose to bank with, every bank claims to be different in the services that they offer. And this can be very beneficial to you as a consumer when it comes to your finances. Because these banks often compete with one another, you will find a majority of these offerings to be very similar, but it is finding the bank that offers the services you need. As a consumer, there are many things you should be looking out for, including bank fees. These are the little things with banks that start to add up. You don’t want to be spending more money on fees than what you should be making with a high-interest savings account. And we’ve already talked about the top ten money wasters we hear about at GoDay, and ATM fees and e-transfers are some of them. So finding out that you are paying to take out your own money isn’t going to help with your budget. Having accounts like a tax-free savings account (TFSA) is one-way people set money also chose to invest. And these contributions to this account are not deductible and any amount contributed, as well as income earned in the account, is generally tax-free. Registered retirement savings plans (RRSP) are great for saving for retirement or bigger purchases in your life like a house since taking money in and out of this account isn’t always the easiest. Contributions to these accounts can also be claimed on your income tax and can help reduce the amount of tax you owe during tax season! So when it comes to your finances, you want to find a bank that works for you and your money.

Learning To Make Better Spending Decisions

Are you tired of feeling like you are spending more money than you are making? When it comes to our money, there are a lot of factors that come into play. And one of the big ones is our spending. There are the things we have to pay for – like bills, rent, mortgage, car, the list goes on. But do you have all of those payments all planned out? Then comes the everyday expenses and not everyone keeps track of what they’re charging to your cards or how much interest could be collecting, but by charging purchases onto your credit card without keeping your budget in mind and worrying about it later is what can get you into debt in the first place. And when it comes to the end of the month and you’re looking at your credit card statement and realize how much you’ve actually spent, that’s usually when you realize how off-budget you are and may need our help to make sure you can get all your payments made for the month. We understand that life happens and there are unexpected things that pop up that can cost you. But there is a difference between financial wants and financial needs when it comes to budgeting and things you need to prioritize to make better spending decisions. It is okay to have bad spending habits. And we have a secret for you – you’re not the only one who likes to splurge. But it is knowing how to break those bad spending habits and make better spending decisions that will have the most impact on your financial future. But what bad spending habits can often allude to are bad savings habits. And as much as we would all like to spend more instead of save more, saving money should always take precedence. 

Being Financially Prepared

Different from saving for a rainy day, do you have an “emergency fund” in place? Your emergency fund is more than just a savings account, it should be ready for whenever the unexpected happens. Things like being laid off from a job, a medical emergency, and any unexpected home or car repairs. Of course, we hope that you would never have to use such funds, but it acts as a safety net for when these things happen. So how do you start to prepare an emergency fund? Why do you need an emergency fund? Do you already have one you’re looking to grow or are you looking to start one? There are a lot of questions when it comes to having an emergency fund, that’s why we want to make sure you are on track and know your options in case something ever happened. Financial experts claim that having an emergency fund is key financial stability and can help reduce financial stress. As an example – it is recommended that an emergency fund contains enough money to cover at least three months of living expenses. It is in these cases where a financial emergency happens that people turn to GoDay. In the event there is a financial emergency and people do not have the savings or emergency funds available, GoDay can get you the cash you need quickly and easily. Since we partner with the most reputable financial institutions and uses the fastest tools in the industry to make sure you get the speediest service possible, you can apply from your computer or mobile device and our highly automated system will do all it can to ensure you receive your funds as soon as possible. We are here to help you be financially prepared. Curious about how much you should have in your emergency fund? RBC has a tool to determine how much you should have saved in case of an emergency based on your current salary.

When it comes to getting a lesson in money, it is okay to re-evaluate your financial plan. Keeping track of what money is coming in and what money needs to go out can be overwhelming! But that is why there are numerous tools and resources out there to help you make the most of your money. And as always, we are here for you for anything that comes your way. To support – not replace – the advice of financial professionals, we have compiled some helpful resources including budgeting tools and calculators, credit reports, payday loan resources and more.

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