Half of Canadians are living paycheck to paycheck and 35% feel overwhelmed by the amount of debt they hold. The survey of 4,766 employees conducted by the Canadian Payroll Association proves that managing your finances is essential.
Staying in control of your budget brings other benefits such as getting the best from your money, having peace of mind, and achieving financial credibility with financial institutions. Regardless of your income levels, your outgoings, or your overall financial situation, working to stay on top of your finances should be given a priority.
Budgeting is a useful tool
As part of managing your money, it is important to understand and have clarity on different expenses and financial commitments, as well as your income. A budget is a tool you can use to plan and manage your finances and is a very helpful way of staying in control of all your financial matters. It is a great way of making sure your personal and family expenses are covered and your money goes where you want it to. According to Practical Money Skills, only 47% of Canadians regularly use a budget to check their spending each week, helping them to stay in control. Creating a budget can offer many benefits, and can help you to create and manage your financial goals; including managing limited financial resources, working towards paying your debts, and creating future savings and investment.
Making use of banking products and services
Banking and financial services also play an important role in managing your personal finances and should aim to make the most of financial products such as bank accounts, loans, credit cards, insurance, and other services such as online banking. Different types of bank accounts, including checking and savings accounts enable you to perform and meet financial needs, including paying bills, withdrawing money, applying for credit and loans, and building savings.
One of the important steps you’ll take to be in control of your finances is learning the best way to manage your bank accounts, as a badly managed account can affect future financial decisions. Banks can reject account applications for a number of reasons, and you’ll need to tackle such issues when they arise. You may need to open a checking account due to credit problems, and this will help you to get back on track and stay in control.
You should find ways of making personal financial management an easy and enjoyable experience. In addition to using budgets, bank accounts, and products, there are a number of financial software and financial apps that make managing and controlling your finances easy and convenient, and you should take advantage of those to achieve your financial goals.