According to CBC Business, 83% of Canadian workers polled for a 2019 survey said they regularly experience stress related to money problems and how much (or little) they’re paid. This is despite record job creation and low unemployment in Canada’s recent months. In lieu of this astonishing figure, we asked ourselves, what are some simple habits that people can do to ensure a bright financial future and elevate the stress of money?
Depending on your own personal financial situation and literacy, some of these simple habits may be more relevant than others. However, the biggest thing you can do for yourself to ensure a bright financial future is: to follow the money.
That is, you should always know exactly how much money you’re making, how much you’re spending, and how much you’re saving, investing, and paying off in debt and interest. The more you know about your money—and financial literacy in general—the more equipped you’ll be for a brighter financial future.
Let’s break this down into bite-sized, simple habits.
30 simple habits to ensure a bright financial future
- Track your monthly income and spending
- Categorize your spending at the end of every month
- Establish financial goals and a clear budget and stick to them
- Pay down your debt
- Set aside 10-15% of your income toward savings
- Plan ahead, research, and save up for large expenditures, such as a vacation
- Always pay at least your monthly minimums
- Invest in your future
- Spend time understanding financial literacy
- Learn from financial experts
- Set up passive income streams
- Curb your shopping and frivolous spending
- Treat or reward yourself once in a while, especially after meeting a financial goal
- Make sure that you can afford your expenses
- Find free, simple ways to treat yourself and spend your time
- Set career and growth goals with your boss to give yourself a raise
- Set up automatic savings withdrawals from every paycheque
- Look into savings and investment options that can earn you money
- Find a credit card that works for your financial situation (rewards versus interest)
- Pick up a freelance side gig for extra spending money
- Set up auto payments on your bills
- Insure your assets, including yourself and your family’s health
- Do your taxes
- Hire experts when and where you need it
- Take notes of your financial behaviour and where you would like to see improvements
- Calculate how much your debt costs you in interest every month and every year
- Set goals using a debt calculator to work your way out of debt
- If your lifestyle costs more than you’re earning, find ways to boost your income or reduce your expenditures
- Consolidate your debt at a lower interest rate and pay it off as quickly as possible
- Work with experts to find a healthy, sustainable financial situation that ensures a bright future
