Best 8 Personal Finance Tips for All Ages in Canada and the U.S.

Managing personal finances is essential for a secure, fulfilling life. This is true, no matter your age or location. Whether you’re in Canada or the U.S., these eight finance tips will help you take control of your money and make it work for you.

Pay off high-interest debt first

If you have credit card debt with high interest rates, paying it off should be your top priority. Carrying a balance every month is like wasting money—it drains your budget and stops you from moving forward financially. Look into options like transferring your balance to a low-interest credit line. Do some research and explore options available in your region to get rid of that high-interest debt ASAP.

Maximize tax-deductible savings accounts (leverage compound interest)

Once your high-interest debts are taken care of, start investing in tax-deductible savings accounts. For Canadians, this means maxing out your RRSP, TFSA, or FHSA if you’re a first-time homebuyer. In the U.S., aim for your 401(k) or Roth IRA. The earlier you start, the more you can benefit from compound interest. It will help your investments grow significantly over time.

Cut out unnecessary subscriptions

We live in a world full of subscriptions—streaming services, delivery passes, online tools, and more. While some are useful, many fly under the radar and drain your finances. Take the time to review your recurring subscriptions. Do you really need that delivery service you hardly use? Cancel any that don’t add value to your life.

Reduce your bills and subscriptions

After you’ve cut unnecessary subscriptions, find ways to lower the cost of the ones you need. Sure, you can’t negotiate Netflix or Costco memberships. But, you can likely get a better deal on your phone, internet, or cable bill. Don’t be afraid to shop around or call your provider to ask for a better rate.

🛑 Stop paying bank fees

In 2024, paying monthly fees for a chequing (yes, it’s “chequing” in Canada🍁) account seems outdated. Fortunately, several banks now offer no-fee options. Simplii Financial, Tangerine, EQ Bank, and WealthSimple are just a few banks offering free chequing accounts. Why give your hard-earned money to a bank in the form of monthly fees?

Maximize life, not savings 🌴

While it’s important to get your financial house in order, don’t forget to live a little. ⚠️Money is a tool, not the goal⚠️. Ask yourself: What’s the purpose of my life? While you don’t need to answer this right away, remember that finding balance is key. Treat yourself to experiences, take trips, and enjoy small luxuries. Money is there to enhance your life, not hoard it for a rainy day that might never come.

Diversify your investment portfolio

The classic advice: “don’t keep all your eggs in one basket”. While it might sound like a cliché, diversification is crucial. Don’t stash all your money under your mattress, in a single savings account, or in one hot stock like Tesla🚀. Invest in various assets—stocks, bonds, real estate, and more. This will lower risk and boost returns.

Increase your income

You want more money🤑? Here’s a shocker: earn more money! It sounds simple. But, too many people limit themselves with self-doubt. They believe they are stuck in their current income bracket. Open your mind to possibilities. A mindset shift can boost your earning potential. It can motivate you to start a side hustle, change careers, or advance in your current job. If you are located in the U.S., check out apps like Wonolo for an extra income.

⚡Bonus: Drink water

It’s easy to get caught up in finances and forget about your health, but remember—you only get one body. Drink plenty of water, eat healthy, get regular exercise, and take care of yourself. Following basic health guidelines(Canada, U.S.) will keep you fit, focused, and ready to tackle your financial goals.

Personal finance doesn’t have to be overwhelming. Follow these steps. In time, you’ll be in a much stronger financial position. And remember—money is a tool to enhance your life, not something to stress over constantly. Balance is key!