6 Ways To Keep More of Your Money

Do you have any money saved up or better yet invested in the stock market? If you do congratulations, you're in the minority. Most Canadians are emotionally and financially invested in real estate.

Real estate in Toronto has outperformed the stock market from 2000-2015 by a wide margin. The TSX returned a pathetic 1.5%. We are meh when it comes to investing it now seems.

Where does all our money go and what is happening to our paycheque? In a recent survey by the Canadian Payroll Association it stated that 47% of us would be pooched if our paycheque was delayed by only one week.

It could take decades to build substantial personal wealth so let's look at some ways to keep more of our income once we get a handle on where it's going.

Credit Card Roulette

Most of us have one, but realize that you are spending money you don't have. They are also addicting to collect points. Instead of using cash or debit we just pull out the credit card and before you know it, it's maxed out. We don't have the money to pay it off at the end of the pay period.

Take your receipts and put them in a pile beside your computer. Look at your account and pay off each receipt as you put them on the pile. If you can't then it's just best if you left the card at home.

Making Bad Investment Choices

Nortel and Valeant Pharmaceuticals come to mind for Canadians as bad investments. Most Nortel investors were wiped out completely along with employees. Valeant shareholders lost 50% and the company has sinced been renamed and will never regain it's folklore status.

Know the risks of investing and only invest in what you know. There are no secret shortcuts to investing. Research what you're doing and if you can't be bothered hire someone to do it for you. Before you know it a vast sum of money has just vanished.

Self Indulgent Spending

We all like to spend money on ourselves. My wife and I like to live a simple life. We plan vacations way ahead of time to save money. We shop the flyers looking for sales, eat most meals at home and don't splurge a lot on ourselves. We are not cheap but more frugal than a lot of family or friends we have.

It's just what we do. Some of my shoes and sweatshirts are twenty years old. We enjoy saving money rather than spending it.

Live a Worry Free Life.

Stay Ahead of Interest Rates

These rates that turn into monthly payments will help cripple your finances. If you don't stay on top of these charges it will be hard to make your income last. Shop for cheaper rates. Instead of paying high 19% credit card charges, use a line of credit first and then pay that off.

Always pay your debts first. Use your left over money to buy investments that generate income and also grow over time. Try not to become a debt dummy, that is living your life always in debt.

Develop a Positive Attitude

Try not to act like a wet blanket when it comes to your money. Set yourself up for success by having both short term and long term savings goals. Put money aside for vacations (short term) and retirement savings (long term).

Set a retirement age early and work towards that goal. Stay positive and control your money so it doesn't control you. If you develop good habits early on you will be less likely to raise the white flag and quit when things get rough. Life will throw a curve ball every now and then, just stay in the batter's box and keep swinging.

Choose a Healthy Life 

Nothing can be more destructive to your personal finances than constantly eating out on fast food, drinking and smoking.

It is also a very unhealthy way to live. Why spend a lifetime of working, saving and investing if you don't live long enough to enjoy it.

On Growing Old and Investing.

If you take care of your life and exercise regularly, chances are you will also take care of your finances. We all know people at work who stand out because they are always calling in sick. Don't be one of them. You lose income and could wrack up bills for medications and other unexpected medical expenses.

Go over all of the above mentioned reasons. Time to do a thorough review of your financial health and get this right. Control your money so it doesn't control you.

Spend your money sensibly so you can enjoy a lifetime of the fruits of your labour.

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