I was pleasantly surprised to hear that on average Canadians’ savings increased 30% since the lockdown began in March. That’s a decent amount and is worth noting. With interest rates at rock bottom levels, how can we leverage that 30% to make it work the hardest for us? Here is a list of four economic tips to help ease any fiscal concerns during such uncertain times
- Pay off debt first- debt is always more expensive than savings and not generally tax deductible so it’s important to get rid of as much debt as possible. Credit card debt is especially expensive and carries double digit interest rates.
- Invest carefully- easy to say hard to do! Blue Chip companies and bank stocks, smaller emerging tech and health stocks look promising. Also dividends have held up in Canada so a dividend-producing stock can grow your portfolio over time.
- Time to develop a budget and re-align your spending. COVID has changed some of our spending habits- eating out less; buying fewer clothes; why not continue? Sept is always a good time to put together a budget and see where our hard- earned money is actually going each month.
- Phone and cable plans- are they working for you? Do you watch what you’re paying for? Is there a better deal to be had? We spend a great deal on our communications and sometimes there is a better deal by getting rid of extra data or extra programs that we just don’t need or want