Are Your Finances More of a Trick or a Treat?
Written by Eugenie O.
This season is scary enough as is, so let’s make sure that the lurking feeling doesn't trickle over to dealing with your money.
I know first hand that tuning into your finances can feel scary, but it doesn't have to be. By taking small compounding steps in the right direction, you will feel more confident and in control of your finances, leading you to overcome your limiting money beliefs.
Face the Fear
Step one, face the fear - no matter how big. I, too, was petrified to peek at my bank account or credit card balances. Whenever I did, my heart would pound, and my palms would sweat. I experienced so much physical and emotional discomfort from what should have been a routine step. The only way I could get a little more comfortable with my money situation was to start looking at my account every day; always taking a few deep breaths first. Next, I applied a great tip that I learned from Mint Worthy: expressing thanks towards the balance, no matter the size. Through implementing this practice, checking my finances no longer feels so terrifying.
More Bank for your Buck
I had always thought switching to a no-fee bank was a great idea in theory, but assumed it would be a time-consuming process. Upon working with a financial consultant, they had recommended this as a great option. I thought, well why not then, especially since I hadn’t banked at a physical branch in years.
The whole process took less than one week. By switching to a no-fee bank, I now save $200 with my no-fee chequing account and $160 with my no-fee credit card per year. Along with the one-time switching bonus of $200, I accumulated an extra $560 in that first year and put it right into my savings. Now imagine saving an additional $360 a year, every year! Over ten years, that's $3,600 or the price of an entire all-inclusive vacation.
Goodbye Credit Card Debt, See You Never
If impulsive or overspending is a problem, stop using your credit cards for regular purchases. For me, this was the most significant step I took. Until you can map out exactly where your money is going, the possible interest you can earn with a credit card isn't worth it. No matter how hard I worked at budgeting and telling my money where it should go, if I was using a credit card, it was far too convenient to "tap" away at every coffee run and drive-through. Those small expenses were what sank my budget each month.
To begin this step, I first saved enough for my recurring monthly expenses to ensure that I could pay for them right from my chequing account. I also deleted my credit card information from online stores and Apple/Android pay. I even went one step further in requesting a replacement card (to which I didn't know the numbers) and stored it in my partner's wallet so that I didn't have easy access to it. Once I took this step, I was able to pay down my credit card debt so much more quickly than when I was still using my credit card.
Stay on the Safe Side
If you absolutely must use credit cards for online purchases, a much safer option is to utilize prepaid credit cards. There are various prepaid credit card options available that allow you to reload the card with money and also earn perks like cash-back on purchases. Since you can only spend up to the amount that you have loaded onto the card, it reduces the constant pull to overspend.
Did Someone Say Free Money?
Make sure to contribute the maximum that your employer will match towards retirement. This is a super easy step, as you likely won’t notice the extra few dollars coming off each pay cheque. By contributing the maximum amount that your employer will match, you are essentially collecting free money towards retirement, which means you won’t have to work as hard to save for retirement in the long run.
Savings Hack
Always put any extra money towards your debt or savings goals. If you find something on sale but decide to opt-out of the purchase because you are committed to your financial future, put the money you would have spent on that item towards your financial goals. Another great tip I learned from Mint Worthy is to put "unexpected" money towards your goals. For example, if you have budgeted a certain amount for dinner, but your friend decides to pay, why not put the money you would have spent directly to your savings.
Through implementing these small steps, my financial clarity, and relationship with money has improved ten-fold. I no longer feel the need to run and hide from my credit card balance or feel helpless about not being able to attain my savings goals. I now feel so confident in my abilities to manage my money, and now feel like the CEO of my spending!