Looking for financial advice on your personal finances? Here are five timeless recommendations:

1. Start Investing Small and Early

Only around 5% of Canadians under 25 have a TFSA (Tax Free Savings Account), which means 95% have already missed out on seven years of compounded returns. Starting small could be as little as $100 month, and starting early means now! Invest what you can and don’t ever think that any amount is too small.

Investing $100 month at 5% for 47 years (age 18 to 65) will give you $68,754 more than someone who did the same starting from age 25.

2. Make More OR Spend Less?

Our financial advice is to do both, but there are limits on how much income you can generate and cutting back on expenses has a bigger impact on your bottom line. If you’re lucky, you may find some expenses you could easily do without, like that lightly used gym membership or seldom watched 200-channel cable package.

A part-time job or side hustle isn’t a bad idea, but you will spend more time working and less time enjoying life. Don’t forget that any extra income is fully taxable — you might need to earn $10 in order to get the same result as a $7 spending cut.

3. Re-Evaluate Your Wants and Needs

A 1200 square foot bungalow was the standard for most families in the early 1970’s. These days, houses are now over 2000 square feet on average and come with plenty of high-end finishes. Being able to live comfortably later in life will come from making smart spending decisions.

4. Understand Credit and Debt

131 months! That’s how long it takes to pay off a $1000 credit balance paying the minimum amount — Plus it will cost you almost $1000 more in interest charges! Many people carry a credit card balance and are blissfully unaware of just how much it is costing them each month.

The key is to be knowledgeable about your debt. Track what you owe and how much that debt is costing you. For example, refinance your mortgage or draw on home equity to pay off higher interest loans and credit cards.

5. Get Financially Literate

Managing your money has become more difficult as we have a lot more spending, saving, and investing options. But, we also have access to a lot more information and tools to help us. For example, diving into the real impact of those investment fees on your mutual funds (it’s a lot!) can easily be investigated online in just a few minutes.