Spending money wisely, or how to get richer

Let’s talk about something that everyone has to deal with. Personal finances. Let’s face it, there’s no shortage of expenses in life! And to make sure we’re aware of what’s going on, it’s important to analyze what goes into our pockets as well as what comes out of them.

Her book “Ça coûte CHER, être un ADULTE!” is available in all bookstores or online and is already a favourite! Online, you’ll find it everywhere like on Renaud Brayor bookshops.ca.

Beatrice’s blog is also to be discovered since she talks about her favourites, about travel, she gives ideas for holiday activities or how to make an assessment of your year. She also offers financial tools to simplify your life and an organization program, L’année qui compte. She even organizes conferences and puts videos on YouTube.

Our community is wise, as we recommend that everyone get into the business of using credit cards as long as you pay attention to your finances and never accumulate debt or pay interest as we have said many times.

But there are still consumers who don’t pay attention. Rule number 1 when you have a credit card: don’t leave any balance on them!

So if you have a debt:

• make an appointment with your bank’s financial advisor,read the two books recommended above and join the Youcef’s community!
• put a plan in place to work towards eliminating your debt over time!
• learn about the advantages of your credit card and compare it with other credit cards on milesopedia: some cards can help you eliminate your debt, provided, once again, that you do it right.

I come back to what I was saying earlier, but it is important to get into the habit of putting money aside early. Starting to save early can be beneficial for unexpected events that can happen at any age in life. Saving for school, children, retirement. All types of savings exist. Ask yourself the right questions and how much you could set aside.

An example from Beatrice’s book struck me: the purchase of a $50 sweater. Who hasn’t bought a piece of clothing on a whim and then only wore it on once or twice? Beatrice gives a tip to calculate the “real cost” of a garment, i.e. the number of working hours needed to buy it.

If you wear the $50 sweater fifty times, it’s $1.00 a pop… And if you only wear the $10 sweater once because you don’t really like it, it means it cost you $10 a pop!

Béatrice Bernard-Poulin

The money from that $10 sweater could have gone into a savings account.

Think about your expenses and plan your savings strategy, set goals, create a diversified investment portfolio (especially since there are easy tools such as Wealthsimple): in short, make sure you have your back before spending your entire budget on a whim.

And are there any foolish expenses? There’s another good question! Did you ever ask yourself that? Sometimes we spend it all over the place. But of course my expense is useful, here! For my mood, anyway!

To have control over our wallet, there is nothing better than putting everything in order and drawing up a budget, as Beatrice, Jean-Sébastien and Youcef remind us! We realize the cash outflow that could have been avoided, the superfluous or unforeseen expenses. Each of them has tools to help you.

I can even suggest another one, the one offered by the Financial Consumer Agency of Canada on the Government of Canada site, which is very easy to use.

Beatrice devotes 15 minutes a week to it, Jean-Sébastien does it monthly, it’s up to you to find what suits you.

And what is the “Happiness” budget? Our authors remind us that happiness is not found in money, even if it contributes to it. The idea is not to stop eliminating all non-essential expenses in order to save, since it is still important to enjoy yourself from time to time (like when you travel)!

When analyzing your expenses, ask yourself if you need the latest iPhone, a new computer or cable with all the TV channels? Would you rather go to a restaurant? Or to buy your morning coffee at your favourite convenience store? Is this an expense that could be cut in part?

Being happy doesn’t always require spending money. Knowing what your plans are, what your dreams are, is important! Ask yourself questions to find out what really makes you happy and plan your “Happiness” budget!

When we start in the workforce, our credit report gets built and our credit score goes up with it. It’s important to know what makes it fluctuate and how to keep it healthy. Why? Because someday you may need to borrow money or apply to a credit card and it could be declined. To do this, check with Equifax and TransUnion!

Finally, keeping track of your file can protect you from identity theft. And that can affect anyone. Equifax reported in November 2020 that fraudsters and thieves were more active since the COVID-19 crisis due to the more intensive use of internet transactions in part.

To prevent these incidents and improve your credit score, take these precautionary measures suggested by Equifax:

• Keep track of your credit card statements as soon as you receive them (or during the month on your online account).
• Regularly request to receive your credit report (this does not affect your score)
• Avoid using Public Wi-Fi networks to track your records
• Regularly update your passwords to ensure they are strong

With the tools that exist now and the ones I’ve suggested above, there are no more excuses for not being financially savvy in 2021!

Read the news, ask Youcef’s group for news and tips, compare bank accounts and credit cards with milesopedia.

Continue to educate yourself on a regular basis to make informed decisions and avoid mistakes!

The objective? Maintaining a healthy connection with money and what source of happiness you’re aiming for.

Finally, as a couple, have an open discussion about money. How much do we earn, how much do we spend, do we have a sufficient pension fund? It’s important for every adult to have a clear vision of his or her financial future.

You have children? Financial education can start very early as long as we don’t go into details so as not to stress them with our financial problems if there are any. Children need to feel financially secure with their parents. It’s up to you to find the right age-appropriate balance to educate them. This can be with pocket money, games, but also books!

Introducing them to money early can lead them to financial stability, but also to the path of entrepreneurship and financial independence!