Along with other best plans, your New Year’s resolutions may have fallen by the wayside as spring approaches.
Do not worry about it. It’s never too late to get back on track – especially when it comes to your personal finances. Whether it’s budgeting, investing or earning rewards, RBC offers the advice and digital tools to help you stay on top of your money.
To help you stay on a solid financial footing for the rest of 2022, here are five personal finance tips.
1. Review your financial plan
Whatever you plan for your future, it’s crucial to have a financial plan, says Stuart Gray, Director – Financial Planning Center of Expertise at RBC.
“Think of it as a roadmap for your financial decisions. A financial plan helps you stay on top of your finances and make adjustments to changing circumstances.”
A key element in creating your financial plan is defining your goals — knowing what you want to save for and your time frame.
Gray says having a plan can also give you more confidence when it comes to achieving your goals. The most recent RBC 2022 Financial Independence in Retirement Poll showed that despite the uncertainties caused by the pandemic and rising inflation, 86 percent of Canadians with a financial plan said they were positive about their financial future.
RBC’s myadviser The digital consulting platform allows clients to define their goals and track their progress, either themselves or with the help of an RBC consultant.
2. Keep track of your cash flow
A budget helps you get a good picture of all the money going in and out. And as inflation continues to affect Canadians’ purchasing power, it becomes even more important to review your budget to see if that picture has changed.
If keeping track of all the money going in and out is turning your head, RBC offers tools like NOMI Budgets and NOMI Forecast to simplify the process.
NOMI Budgets saves you the thought – and the manual calculation work – when creating a budget. It scrutinizes your spending in five specific categories and recommends a personalized monthly budget based on your spending habits. NOMI Forecast, meanwhile, learns from past transactions and uses artificial intelligence to create a quick seven-day forecast of your future cash flow by tracking recurring bill payments.
3. Be ready for the unexpected
The pandemic has taught us that the unexpected can happen at any time. It also underscored the importance of an emergency fund.
“There’s no magic involved in setting up an emergency fund,” Gray notes. “You just have to start putting money aside regularly – even in small amounts.”
As a general guideline, try to build your savings to cover about three to six months of your daily expenses. You can use a digital savings account like NOMI Find & Save to help — it uses predictive technology to find extra money in your bank account that it thinks you won’t miss and automatically sets that money aside as a savings balance .
“You can build your emergency fund and other savings without even thinking about it,” Gray adds.
4. Look beyond the headlines when investing
It can be tempting to deviate from a well-designed investment plan due to negative headlines or market volatility. But don’t let emotions get in the way of your investing decisions, Gray says.
“Stick to your budget. It really is your roadmap – use it that way to guide all financial decisions no matter what the markets are doing.”
If you stay disciplined and adjust your plan for the right reasons, you can reach your goals sooner. Gray notes that there are a number of helpful articles online about “tried and true” investing moves — one he recommends is Principles of Successful Investing.
5. Get more value from your daily activities
Don’t ignore the financial benefits you can reap from your day-to-day activities because it’s easier than ever to make savings and get the most value out of the things you already do every day.
With RBC Vantage, RBC’s everyday banking offering, you can now earn more savings and rewards than ever with your personal bank account. You can save on monthly fees by holding other RBC products and doing simple activities like direct deposits, and you can get enhanced support through new interactive tools. You can even earn RBC Rewards points when you shop in-store or online with your registered account. These points never expire, so you can save and use them when the time is right.
RBC Vantage also helps customers earn more rewards and savings when they take advantage of offers from trusted partners like Petro-Canada. By simply paying for gas with any linked RBC debit or credit card, you’ll automatically save 3¢/L at the pump, which quickly adds up.
“Using reward points to pay for your purchases and take advantage of the offers available to you puts more money back in your wallet,” Gray adds. “That’s a huge plus for any financial plan.”
For more information, see out RBC financial planning, myadviser, NOMI, RBC Advantage, RBC Rewards and RBC Rewards Points with the associated information contained therein.
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