The world of money can be incredibly complicated. Just ask anyone who has done the study to become a Certified Financial Planner or Chartered Financial Analyst.
But that doesn’t mean your finances need to be hard. If anything, that works against you. The best money moves are also incredibly simple to execute.
Take paying yourself first, which I’d consider my most important money hack. Taking 10% or 20% of your salary off the top to invest for the future is the easiest way to save.
Next, work on your biggest expenses. Housing will likely top that list. There are a few uncomplicated ways to keep your housing costs low, like not acquiring too much house and the willingness to compromise on location. This is especially important for folks living in Canada’s most expensive cities.
Take an axe to your transportation expenses next. This might include taking public transit to work or selling a little-used car and putting the proceeds to work in a more productive investment. There’s no rule that says you and your spouse each need a car.
Once you’ve minimized your expenses, it’s time to make more money. Don’t be afraid to ask your boss for a raise, especially after an exemplary performance review. If your employer won’t pay you what you’re worth, it’s time to consider switching jobs. And if you’re paid by the hour, take every minute of overtime you can.
Finally, if work offers you a RRSP match, take advantage of it. A mere 5% of your salary might not seem like much, but it likely represents a few thousand dollars of free money. That’ll really add up over a 30-year career.
