Here is a basic step you can take to becoming financially secure and/or improve your financial situation: open a savings account and set up a system to have a certain amount deposited there on a regular basis – whether it comes automatically out of your pay cheque or is an automatic transfer from your regular account, and then – forget this savings account exists until the dollar figure reaches an amount that you determine beforehand. For instance, you might save until you have enough to pay cash for a decent used car, or until you can pay cash for a Caribbean vacation. Or, you could be making regular contributions into a RRSP or TFSA for the tax advantages they offer.
Of course you have to make sure you can cover your basic expenses before you start a savings plan. Determine what you can afford by doing a budget. You may need to track your spending for a few weeks but there’s no better time for action than this new year.
You have to pay rent, but do you really need to spend $100 a month to maintain your manicure? Be brutally honest when evaluating your spending habits – and like any habit, it can be changed.
The subject of money can be an emotional one. In spite of ample funds and earning power, some people are afraid to spend and live in fear of impoverishment. Insecurity can cripple them and be just as destructive as obsessive gambling and professional help should be sought if these behaviours describe you. It takes great strength to get professional help.
Regardless, most of us can use more education about personal finances, and there is a wealth of information out there. Good luck and stay positive.