![]() ![]() Having the right accounts can help you meet your goals quicker. For example, EQ Bank has been consistently paying around 2% interest for years whereas I’ve earned zero interest from my regular bank. Unlike traditional banks, digital banks pay a decent interest rate. Make sure your savings goals are set up with one of the best high interest savings accounts in Canada. By doing this, you’re paying yourself first. You can take things a step forward by setting up automatic transfers from your chequing account to an account for each of your goals. Quite often that means, there’s zero money left for savings.īy listing out your savings goals in your budget, you’re making them a priority. Many people only think about their savings after all of their monthly expenses have been. You won’t necessarily be saving for all of the above goals, but the idea here is to list out what your plans are. Registered Education Savings Plan (RESP).Registered Retirement Savings Plan (RRSP).Some goals you’ll likely want to list include: I recommend separating these lines from your expenses so you get a clear vision of what you’re working towards. Having a balanced budget is something to be proud of, but don’t forget to include any savings goals you have in mind. Any cash surplus can be put towards reducing your debt or increasing your savings. There will always be miscellaneous costs that come up which is why you want to ensure you have a buffer in your budget. This should be obvious, but your expenses must be lower than your income. Yes, that’s a lot of expenses and I likely haven’t even covered everything. Outstanding debt (student loans, credit cards, line of credit, etc.).Your expenses might look something like this: Start with all of your hard expenses and try to group categories together so you can see how much you’re spending. Listing out all of your expenses is vital because you need to see where your money is going. If you have a side hustle or you’re getting any other income such as the Canada Child Benefit, be sure to include that too. It’s not an exact science since there will be months where you get an extra paycheque, but it’ll help you manage your expenses better with a monthly number in mind. ![]() For example, if you’re being paid $2,000 (after taxes) bi-weekly, your monthly income would be $4,333.33. Then divide that by 12 and you’ll have your monthly income. Take your bi-weekly pay and multiply it by 26. If you’re paid monthly, you’ll already know your number.įor those who are paid bi-weekly, you’ll need to make a quick calculation. For most people, this will be the salary they take home from their employer, so it should be easy to calculate. Follow this Budgeting 101 Guide and you’ll have your money working for you in no time.Īt the top of your budget (above your expenses), list out your monthly income. So how do you budget your monthly expenses effectively? It’s pretty simple. While creating your first budget may be a bit intimidating, once you’ve got one set up, it’s incredibly easy to manage and update. It doesn’t matter if you’re a recent grad or if you have a six-figure income, having a budget will help you manage your money. Article written by Barry Choi for exclusive use by reebee.Įvery person needs a budget. ![]()
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