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Develop These Habits for Financial Success

With the promise of a new year comes the optimism and commitment to making improvements to our lives. We want to become better, healthier, happier versions of ourselves. For the year 2019, where do your financial goals sit on your list of resolutions?

Especially for those with steady income, it’s completely normal to wind up in difficult financial situations every now and then. Debt among Canadians is increasing and options like payday loans from GoDay (also known as short-term online loans) offer a reliable source of relief when you’re waiting on your next cheque. To reduce reliance on loans in 2019, take a look at the following tips for financial success this year and start putting a plan into action for your finances today.

Open Up a Tax-Free Savings Account


Did you have a sensible parent who would talk on end about the importance of a Tax-Free Savings Account (TFSA)? Did you end up opening an account? Are you unsure of what a TFSA is, how it works, and its benefits? The TFSA is a highly popular type of Canadian savings account that was introduced in 2008, first became available to Canadians in 2009, and has since become one of our favourite ways to save money.

Be Active with Your Savings


You contribute to your TFSA with after-tax dollars, but once the funds are put in your account, they continue to grow at a tax-free rate. You can withdraw dollars from your TFSA without paying tax. Since TFSA withdrawals don’t count as “income,” they don’t negatively impact income-tested benefits such as Old Age Security payments or the Guaranteed Income Supplement.

However, there is a general cloud of confusion that surrounds the TFSA among those who have this type of account. Some experts argue that the name would be more accurate if it were called a “Tax-Free Investment Account” because the account’s design allows its owners to shelter the gains made from interest and dividends from taxation.

Invest


TFSAs allow you to buy equity like stocks, mutual funds, bonds, GIC’s, and ETFs to get your money growing. If the world of investing is scary and unknown, don’t worry. Everyone has to start somewhere when it comes down to building a financial future.

The demand for accessible and simple ways to invest money has been heard. Today there is a rich market of investment apps as options for new investors who want to grow their savings. Take a look at your digital savings opportunities and start small. You’ll start to get into the habit of saving and even earn some money through your investments.

Establish a Savings Plan


Many banks understand that people like to save and that they want to do more of it, but not everyone remembers to put away money regularly. In response to this trend, banks allow their patrons to set up automatic and customizable systems of savings that take fixed amounts from paycheques and deposit the funds directly into a savings account.

The sooner you activate this feature the sooner you start saving, so why wait? Launch into a fruitful year with some healthy financial habits and soon enough you can achieve your financial goals.

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