How to Stay on Top of Finances
Financial worries are often the concern of most Canadians, regardless of their income. Ensuring bills, rent, and other monthly outgoings are paid correctly can be stressful.
Thats why this article intends to ease that stress. Learn a few essential tips to keep your finances in check and have a healthy bank balance.
Pre-authorized debits (PADs) are payments that a company has scheduled on your bank account. Its normally how all your smaller bills are paid.
Your phone, paid applications and entertainment such as Netflix and Spotify are deposited through PADs. You may lose track of all these payments because theyre taken automatically, which means your finances can become blurry too.
Go through all your monthly outgoings and track them. Do you really need certain memberships or entertainment passes? Ask yourself which ones you actually use and cancel the others.
Theres always some alternative free apps that you can download instead of paying for them. By minimizing these automatic payments, you have more control over where your money is going.
Also Read: How To Improve Your Credit Score Easily?
Pay Taxes Correctly:
A world without taxes would be ideal. But sadly, were obliged by law to pay up the right amount. The majority of Canadians manage to work out their tax returns accurately and file for them when required.
Sometimes, the papers are filled out incorrectly or not at all. This previously led to interest and penalty fees. With the new Voluntary Disclosure Program (VDP), Canadian taxpayers can file for previous years without incurring fees.
Visit https://www.canadiantaxamnesty.ca/voluntary-disclosure-program/ to find out if this affects you. Filing correctly for taxes means you wont face any consequences in the long run. Its a great way to keep your financial record clean as well.
Create a Realistic Budget:
Making a budget and sticking to it is tricky. Youre bound to break your budget if it doesnt have enough flexibility. Create a monthly budget instead of a weekly one. That way, you allow for emergencies or extra spending that you didnt plan for.
Dont be disheartened if you go over it by a small amount. The main point is that youre more aware of how much you spend. Try making a list and noting down all your expenditures.
You could even withdraw cash for the week or month. Studies show that shoppers spend up to 100% more when they pay with a credit card. Keep your credit card at home and stick to cash!
Avoid Payday Loans:
These are quick, short-term loans that are placed in your account within a couple of hours. The loan comes with a huge price tag, however. Interest rates on payday loans are astronomical.
Look to other solutions, such as an overdraft or a small personal loan from the bank. You could even ask friends or family to lend you money. Just be sure that you can pay them back eventually.
What to Do Next
Dont delay in getting your finances into a more healthy position. It can be tempting to avoid thinking about this, but you will be guaranteeing yourself more trouble further down the line.
Hopefully, these tips will help you manage your finances better. Remember to seek advice from free debt advisors, or even from your bank if you need. Good luck!