9 Tips on How to Manage Personal Finances Effectively
Updated: May 3, 2021
Find the budget that best works for you Whether it's the 50/30/20 Budget, Zero-Based Budget or Cash Envelope System, do a quick Google of the different budgets and find the one that fits you best. This will ensure that you can withstand the challenges that come with budgeting money and ensure that spending can be kept within an allocated set of funds.
Budget, budget, budget I think You Need a Budget has summed this up perfectly! "Money is finite. No matter how much of it you have, you need to prioritize where it goes." Budgets are about prioritizing where your money goes and living with intentionality. Have a home for each dollar. Your net worth will thank you for it.
Maximize RRSP contributions
Maximize TFSA contributions
Check your credit report at least 1x a year It's always good to get into the habit of checking your credit report at least once per year. This helps to protect against fraud, allows you to reflect on where credit has been granted under your name and will let you see a thorough report showcasing your credit score.
Keep your tax documents organized throughout the year/have a file Have a file for your taxes (tax slips, medical and health receipts, charitable contributions over $20.00). This will keep you organized throughout the year so when it comes time to file your taxes by April, you know where all your tax documents are and don't have to panic to find all of the paperwork again.
File your taxes yearly This will keep your finances organized by ensuring you're up to date with the government every year. This will also ensure you know what you're getting back in a return or what you have to pay and ensure you're on time with your payments to the Government.
Maximize the use of your work's health and benefits packages Use your health and benefits coverages through your work! This will hopefully save you time and money by ensuring that you use all of your health and medical credits for your own overall wellbeing.
Save for long term money goals (property taxes, vacations, other assets like 2nd homes) Ensure you're putting money away to save for long term goals like property taxes, vacations and other assets like (potentially!) a second home. You can use a Tax Free Savings Account to save for long term purchases if your interest is going to be above $50.00 a year (for tax return purposes). This will ensure that whatever interest you do make on your account is tax free, meaning you don't have to claim taxes and pay on these savings! A Tax Free Savings Account (TFSA) is a beautiful thing!