Owning personal finance is something that provides great difficulty to some people. Fiscal responsibility is a hard trait to acquire, and with little in the way of real-world training, many people are left to their own devices to figure this all-important skill out for themselves.
Yet taking control of your personal finance needs doesn’t have to include a Herculean effort. With a few common-sense practices and a commitment to learning to better your financial instincts, taking this control is actually quite simple.
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Financial health starts with savings.
Emergency and routine savings pools are something that everyone needs. Emergency savings constitutes a backstop for the unforeseen expenses that often creep up on you. From a flat tire to an adjusted electricity bill, the expenses of life can quickly rack up, leaving you to rely on emergency fund savings or a credit card to cover the costs. For those without an emergency fund, the additional cost of utilizing credit for each and every emergency spending need can be detrimental to good long-term health.
Credit cards are a useful financial tool.
While credit card spending can be problematic, there are a number of important use cases for credit, and a lot of people are cardholders as a result. Adding one of the best cash back credit cards for Canada to your wallet as a cardholder is a great way to see a unique and powerful financial boost when used responsibly. Credit cards offer expanded purchasing power and balance transfer offers. As well, with a great rewards card in your wallet, credit cards can add value to your bottom line as well through cash back on groceries, at gas stations, and in a variety of other bonus categories. Smart spending with a credit card is the fastest way to boost your credit score, giving you expanded access to high-quality borrowing opportunities for larger purchases like cars or real estate.
These are essential buys for many Canadians, and the ability to borrow at a favorable interest rate and great repayment terms provides the necessary flexibility in your financial health later in life. A single percentage point difference on a mortgage loan can mean the reduction of tens of thousands of dollars owed over the repayment period, so getting serious about quality credit usage today is a must for anyone looking to control their finances.
Prioritize real estate investments for a full-spectrum plan of action.
Finally, investing in great assets that will grow your wealth over time is a must for anyone trying to boost their financial health. Coupling investments with smart repayment decisions is the fastest way to create and maintain the financial moat that you require in your daily life. Building assets while reducing debts is a must for all consumers, but working to find great investment opportunities that fit in with your current and future needs isn’t always a cakewalk.
Great investment platforms like Goodegg investments are an essential ally in this search for expanded growth potential. Goodegg offers investors the ability to get into real estate as a syndicator, but also with the assistance of a professional management approach that REITs and similar opportunities often tout as their primary selling point. Getting into real estate is a great way to grow your portfolio over the long term, and it’s a go-to asset class for some of the highest net worth individuals in the world. Real estate provides price appreciation over the long term, but it also gives you access to passive income in the form of tenant rent checks. This double-dipping is what sets the real estate market apart from virtually all other investment assets and can underpin a winning strategy for the future for you as well.
With these tips in mind, managing your finances like a pro is simple.