It’s time to take the DIY approach with your personal finances.
Everyone sets goals for the future and many require having a solid financial plan in place. We want to have healthy finances throughout our lifetimes and to be able to reach the financial goals we’ve set for ourselves. But many in Assiniboia worry this isn’t achievable on our own, that we should pay for financial advice, leaving the decision-making to the professionals.
With an abundance of online personal finance resources available now, that’s no longer true. You can gain control of your finances yourself and you don’t need to pay fees for external help.
Even better, this approach is completely customizable. You can set your own goals, make your own decisions, choose your own investments and go at a pace you feel comfortable with. What a great sense of accomplishment you’ll feel designing your own financial roadmap.
The basics: Financial literacy and personal finance
Financial literacy is needed to be able to manage your money. Armed with this understanding, you’ll make better financial decisions in all three areas of personal finance: saving, spending and borrowing.
“There are countless free online resources available to Canadians looking to improve their personal finances,” explains Caitlin Wood, Chief Content Officer for Loans Canada and Rate Genie. “Consumers should check out the Government of Canada’s website as it covers many money and finance topics. With both Loans Canada and Rate Genie, we are always publishing content to empower Canadians to improve their financial knowledge.”
Take advantage of an online financial literacy course from McGill University. It’s free, open to all, takes a few hours to complete and is taught by professors from the school’s Desautels Faculty of Management. After finishing all of the course modules you’ll receive a McGill Personal Finance Essentials attestation of completion.
As Wood recommends above, the Government of Canada website is a great one-stop resource. You’ll learn all the basics of money management here, including budget making, banking, credit reports and credit scores, insurance, retirement and estate planning.
Canada’s largest personal loan comparison website, LoansCanada.ca, can also help you make smart financial decisions. The site gathers together quotes from different lenders, selects the best option for you and saves you time and money.
The path to better financial health
Creating a budget is the starting point. This tool for tracking and controlling your spending lets you see exactly where your money is going. Budgeting also prioritizes savings and emergency funds, which, as we’ve learned from the COVID-19 pandemic, are now a necessity.
To get started, check out Mint, a free online budget tracker and planner, or YNAB (You Need A Budget), personal budgeting software based on The Four Rules principle.
The next step is investing. Even when you’re just starting to get a handle on your finances, investing is important. It’s a key component of financial planning, allowing you to grow your wealth and helping you reach short- and long-term financial goals, such as saving for a down payment, your child’s education or retirement.
If you haven’t already, open a tax-free savings account (TFSA). You might also want to try using a robo advisor; online investment management services like Wealthsimple or WealthBar are easy to use and beginner-friendly.
Finally, create a debt management plan and begin paying down what you owe. Only take on new debt you can handle, keeping in mind that good debt can actually increase your credit score.
If you have any questions or need advice, seek out the services of a credit counsellor. They can help with basic budgeting, credit health, credit improvement and creating debt repayment plans. They’ll advise if you need a more drastic solution such as debt consolidation, debt relief, consumer proposal or bankruptcy.
Set a goal to be financially literate and see the impact it can have on your personal finances. Managing your money well is absolutely within reach. There is also lots of help available if you ever need a second opinion along the way.
