November is Financial Literacy Month, and we have the tips to ensure your financial game is on point this Fall as we head into the New Year!

Nail Down Your Budget

Understanding the basics of budgeting and tracking your income versus spending is fundamental to financial literacy and control. Building a budget can help you define your spending habits and determine where there is room for adjustments, and this gives you a chance to review your cash flow situation to ensure it aligns with your financial goals.

Ideally, your budget will fall close to the range of the following:

• 32% of your income for housing, including property taxes, maintenance, utilities, etc.
• 26% of your income for life, including groceries, medical, childcare, vacations, fun, etc.
• 16% of your income for transit, including car payments, bus passes, gas, etc.
• 16% of your income for debt, including credit cards, lines of credit, loans, etc.
• 10% of your income for savings, including long-term planning, retirement, etc.

Dedicate Your Savings

Many individuals will have a savings account connected to their chequing account. This can be a bad habit, as using your savings account as a second account becomes too easy versus a dedicated account for emergencies, vacation planning, or more. Ideally, you are putting 10% of your monthly income into savings whenever possible.

Live Within Your Means

This one seems simple, but it isn’t easy to do – especially if you don’t have a proper budget! By putting together a budget, as mentioned above, you can see where you are spending your income and how it compares to what you are bringing in. Ideally, you are adjusting your spending to ensure that you are not going over the cash flow with priority expenses first, followed by leisure.

Understand Your Banking Options and Interest Rates

Having a 16% interest rate loan, a credit card that you’re barely making payments on, or a savings account that doesn’t give much back are all areas for consideration when truly understanding your options. Sometimes, a different bank, account type, or loan type can significantly affect your financial position. There are plenty of options, especially at mortgage renewal time, for consolidating your debt, changing your mortgage, getting a better interest rate, and more!

TIPS TO PAY OFF YOUR MORTGAGE FASTER!

Check Your Credit

An annual review of your credit score and credit report is a huge part of financial literacy, which plays a crucial role in your financial status. Your credit score affects your loans, credit cards, mortgages and the interest rate you can qualify for, so be sure to understand where you fall on the scale.

GET HELP UNDERSTANDING YOUR CREDIT SCORE!

Plan for Big Expenses

Are you looking to replace your car? Planning a family vacation? Need to renovate your kitchen or replace some furniture? These are all typically more significant expenses that should be prepared for in advance. While sometimes an appliance will break and need to be replaced, the goal is to have funds in your budget (or savings) for unexpected things and to plan out spending before large purchases or bookings. This ensures that you know you’re already paid when you get on that plane or drive off that car lot!

Review Your Financial Progress

Many people set up a budget but forget to update it along the way! Ideally, if any of your expenses change, such as an increase in your streaming services bill or utilities, you are updating your budget in real-time to ensure that you are keenly aware of what is coming into your account and going out. An annual review is a good idea for an overall budget clean-up, but maintaining it all year will help you get the best picture of your financial situation.

Stay Informed

Whether you’re new to financial literacy and budgeting or want a refresh, taking control of your finances and better understanding your spending, cash flow, and options will help you get the most out of your income! It’s a perfect time to get your finances for the new year!

Trish & The Primex Team