Even though they say money can’t buy happiness, it’s hard to think otherwise when everything you feel you want to do and need in life has a dollar sign in front of it.
But putting your money to work for you can put you on the path to be financially independent, to meet the savings goals you’re trying to reach, or more. Because we all have goals when it comes to our money. And one of the ways to meet these financial goals is to start making your money your number one priority. Or at least have something they hope to achieve financially like buying a house, paying down debts, getting a new car, or going on that bucket list trip.
However, the only way to reach these financial goals is to have some sort of budgeting system in place. You need to be able to ask yourself what you are willing to do to put your financial future first and make money your number one priority. And we understand that life happens. Expenses pop up and you can’t plan for everything, but that is what we are here for. You can count on GoDay to help you put your best foot forward when it comes to your finances.
Where To Start
When it comes to making your money your number one priority, where do you even start? When it comes to your finances there are the things we have to pay for – like bills, rent, mortgage, car, cell phone, the list continues. And these expenses won’t be disappearing anytime soon. On top of those expenses, you also have your everyday expenses – coffee anyone? And these expenses can be the ones we often lose track of the most. No matter your age, or financial situation, we all have bills to pay.
But it is our financial responsibilities that change at different stages in our lives, from school, to kids, to buying your first home, getting a new job, to retirement, and you need to stay on top of your financial obligations no matter what stage in your life you are at. So, how do you stay on top of all of these financial priorities? It all starts with understanding your finances and setting financial goals for yourself. From there is where you then take the first step.
Making Your Money Work For You
Making your money work for you is important in building your financial future and one you are happy with. We can’t always be making a bigger salary or wage in our jobs. Even though we may all deserve a raise! However, taking the money you do earn and the funds that you already have saved up and using, spending, and investing it wisely can have a big impact on your financial future.
What are the different ways that you can make your money work for you? Why not start off with small changes like doing some research and switching up your banking and even the credit card you are using. Or you can make big changes like finding the right places to invest your dollars. There are options out there for everyone and it is important to keep these things in mind as you try to make your money grow!
It’s important to realize that money is a tool that can help you achieve your goals, and for you to reach that financial independence you want, you need to have your money work for you. Not you for it.
How Are You Keeping Track
We talk a lot about budgeting here at GoDay, and it is because we believe that keeping track is one of the most important things you can do to make sure you are staying on top of your finances. Everyone has a different way of how they like to keep track of their money, the goals they have when it comes to finances and different financial priorities. So there is no “right” way of keeping track. But there are a lot of good places to start to see what works for you.
When it comes to creating your budget, and financial game plan, you want to make sure you are keeping track of all the money that is coming in and what money is going out. This can be overwhelming for people and often the reason people don’t stick to or have budgets. And there are a lot of free tools out there to help you stay on track and eliminate the burden of keeping all your receipts and trying to pour over a spreadsheet. But hey, maybe that’s what works for you and that is okay too! We understand that life happens and there are unexpected things that pop up that you can’t budget for.
But there is also a difference between financial
wants and financial needs when it comes to budgeting. With this in
mind, you can take these as opportunities to readjust your budget and work on
planning out or finding a better way to track your spending. Spending money can
be easier than saving money, we all know that. But if you are able to identify
where you have gone over budget, what you are overspending on, etc. then you will
be able to have better control over how to save money.
Stop Worrying About It Later
Now that you know why it is important to keep track of where your money is going, to make your money your number one priority, you need to start paying attention to your spending and savings and stop worrying about it later. 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. Especially if you’re trying to tackle debt, putting purchases on your credit card compared to using cash or debit is what can get you off track in the first place and most people put purchases on their credit cards thinking that they will take care of it when their bill comes in at the end of the month. And when your monthly credit card statement does come in and you realize how much you’ve actually spent, that is usually when you realize how much you have gone off-budget and may need our help to make sure all the bills get paid.
Be Prepared In A Financial Emergency
If an emergency were to happen tomorrow, would you be financially prepared? What happens if you unexpectedly lose your job? What if a pipe bursts and your basement floods? A family member becomes ill and you don’t have health insurance? You get in a car accident? The list goes on of unexpected emergencies that can happen. It’s life. And every year, a large proportion of Canadians face an unplanned emergency expense. Of course, it is something we never want to plan for, but you cannot predict when a financial emergency is going to happen, but you can be ready for it if and when it does. It is recommended that your emergency fund cover at least three months of living expenses. But like any kind of financial decision, doing your research into what is best for your lifestyle and finances is what will determine how to build your emergency fund and how it will affect your financial future.
Having an emergency fund in place is part of making your finances your priority. Because it is more than a savings account. The ideal emergency fund lets you see your money grow and gives you complete access to your funds quickly and easily when you need them. But it should be a separate account that is not to be touched until you absolutely need it. 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. Make your money a priority by having an emergency fund in place and alleviating the financial stress of knowing that you would be financially secure if something were to ever happen. If you do ever find yourself in an emergency and you are not financially prepared, GoDay is here to help get you the cash you need, quickly and easily. Get started with an application today.
Making Better Spending Decisions
Do you feel like you are spending more money than you are making? If so, you are not alone. When it comes to making your money your number one priority, we need to make sure we are not only saving more money but also making better spending decisions so we can save more. Who else is guilty of bad spending habits? We are. Do you know what yours is? Is it a specific item? Everyone has them – and whether you are treating yourself or spending freely, we can all make smarter spending decisions when it comes to our money.
We often get caught justifying our spending. Next time you are shopping, ask yourself “why” before you buy. Are you purchasing items impulsively? Is this truly a need, or a want? How will this item add value to your life? Asking yourself these types of questions forces you to engage with “things” in a much deeper, more meaningful way. And by being mindful of the items your purchasing will help create the long term happiness we discussed earlier.
We know that there are many reasons why we spend money and a lot of the time it makes us feel good too. When it comes to spending your money and how it makes us feel, it can give you many things, and not all of them have to be physical items, but sometimes the ones that can make us the happiest are the dollars that give us the opportunity to have memorable experiences. This is why being smarter when it comes to saving and spending can have such a big impact.
Be Realistic
Money habits are like any other habits. They don’t happen overnight. It takes time to start seeing results and working to change things you are already so used to doing. And this applies to your finances as well. You won’t magically see your savings account grow overnight (unless it is payday and money can magically appear in your account). It will take time and a lot of effort and lifestyle changes for you to reach a desired amount of savings or to start making money a bigger priority. That’s why you need to be realistic when it comes to your money goals. It is better to start with small amounts so that you don’t become discouraged. By setting your expectations too high, you won’t become easily discouraged. Because everything costs money!
You can start by figuring out what you can put aside every week, even if it is a small amount each month, a little goes a long way. You also don’t want to have any other bills and savings to suffer when trying to meet these new money goals. But you will be surprised how much can go a long way over time. Especially if you are setting money aside or investing it into RRSP or TFSA accounts. These small money changes can have a big impact, even though the financial goals you set can sometimes seem out of reach. One of our favourite tips is to start treating saving money like a bill payment by automating your savings. What do we mean by this? By setting up automatic transfers to a savings account or creating savings reminders in your calendar are ways to automatically have money set aside that you don’t have to think about and is routinely managed for you.
Making your money a priority can have a lasting impact on your financial future. And if you need our help getting started, GoDay is here for you. See how you can get online payday loans in Ontario today.
