Weekly Summary - MoneyMasterClass Lesson 10
In a recent Money Master Class, personal finance expert Gail shared her practical tips for managing personal finances. Here's a summary of her advice.
Gail emphasises the importance of tackling debt repayment and savings simultaneously. She encourages individuals to start small and be consistent with their savings. For instance, an individual saved $196.49 in January and February.
To boost savings, Gail focuses on finding High Interest Savings Accounts (HISAs). She advises against accounts making less than 1.5% interest, as they are not working hard enough. Simplii Financial offers an interest rate of 1.05%, while top options like the Scotiabank MomentumPLUS Savings Account offer up to 5.00% interest, with no monthly fees and CDIC insurance.
Gail's savings account advice extends to the importance of choosing one day of the week to be a no-spend day. In addition, she encourages using coupons to keep the grocery budget low.
The first task of the week, according to Gail, is to track every expense and mark each purchase as either a want or a need. This distinction between wants and needs is a theme Gail has tweeted about, as it helps individuals prioritise their spending.
Gail also shares her perspective on how a person's pain and suffering can manifest in backlash towards her, as she works in the social services sector. She expresses difficulty finding praise for a bank teller who was unhelpful.
In February, the individual shopped for groceries and gas, with a few extra purchases due to it being their birthday month. They spent money for 16 out of 29 days in February.
Gail distinguishes between planned spending and savings. Planned spending is for short-term goals like vacations, while savings are for long-term goals like retirement or education. She defines investing as putting money to work, while saving is just accumulating money.
For those interested in joining the Money Master Class, Gail invites readers to visit her website for more information and to start their financial journey. Always confirm current rates and terms before applying, as rates can vary or be promotional and subject to change.
Other noted options include KOHO with up to 4.00% and Neo Financial Cash Account at about 2.5% with no fees but no physical branches. EQ Bank offers an interest rate of 2.45%, while Tangerine offers an interest rate of 1.05% (with promotional rates of 2.65% to 2.75%). These accounts typically have no minimum balance requirements and offer competitive promotional rates, making them attractive for savers in Canada seeking liquidity combined with good return rates.
Finally, Gail presents a challenge for next week: offering praise to every person interacted. This simple act could make a significant difference in someone's day and help promote a more positive financial community.
In line with Gail's advice, an individual could consider finding a High Interest Savings Account (HISA) to boost their savings, such as the Scotiabank MomentumPLUS Savings Account that offers up to 5.00% interest. Additionally, being consistent with savings is crucial, as demonstrated by the individual who saved $196.49 in January and February.
