(NC) According to recent research, while three-quarters of Canadians say they have strong financial habits, many are still making money mistakes that could be impacting their financial wellbeing. These actions range from not setting financial goals to not keeping track of expenses. The research also uncovered that many Canadians feel they lack the time or knowledge to make good financial habits stick.
Want to avoid money mistakes and build stronger financial habits? Here are six actions to help get you started.
- Set goals and create a plan: Knowing what you want to achieve and creating a plan is an important step in making new financial habits stick. It allows you to see where you are financially and identify the habits you will need to create, and stick to, in order to reach your goals.
- Make a budget and track your spending: These are two important habits that can improve your financial wellbeing. Start by looking at your spending habits and then create a budget that aligns with your monthly earnings. Make sure to capture all expenses, big and small, and to review your budget regularly to ensure you are staying on track.
- Monitor your cash flow: Knowing and staying on top of your cash flow is an important step to not only ensure you have enough money to cover your expenses today, but to make long-term planning easier by identifying how much money you have to put towards savings and investing goals. It can also help you determine if you need to tighten up your spending.
- Save and invest when and what you can: With everyday expenses adding up, it can sometimes seem impossible to find money to save or invest. A common misconception is that it takes a lot of money get started or make a difference. In reality, finding even a small amount of money to put away can add up over time. The most important thing is to just get started.
- Chip away at debt: Knowing how much debt you have is a good first step. Make a list of all your current debts, along with interest rates, then look at your budget to see how much you can put towards paying off your debts. While there are many approaches you can take, one strategy is to focus on your highest-interest debt first.
- Get expert advice and use tools that can help: Get expert advice and use tools to help you keep your financial habits on track. For example, digital tools like RBC’s NOMI, which provides a suite of capabilities that use artificial intelligence to help Canadians manage their money, can help remove some of the barriers and friction that can come with creating better financial habits.
Find more tips to help you navigate creating better financial habits at rbc.com/nomi.
