2019 Financial Resolutions

The new year has arrived and you’re here because you want to get your finances in order. At ratehub.ca, we believe in sharing knowledge to help our customers make better financial choices. Here are 7 actionable tips on how to get your finances in order this year!

#1 Stop paying fees on your chequing account

Are you still paying bank fees? From monthly account fees to Interac e Transfer fees, the costs can add up quickly. Choosing a no-fee chequing account can easily save you $120 to $240 a year. Some chequing accounts even earn you rewards!

The Scotiabank Scotia One Chequing Account and Alterna Bank eChequing Account are great options. While the former will waive your monthly fee with a minimum balance of $4000 and can earn you SCENE points or travel rewards, the latter has a $0 monthly fee and offers unlimited transactions (including Interac e Transfers!).

Want to find the best chequing accounts?

See today's best no-fee chequing accounts in market here.

#2 Grow your savings faster with the highest interest rate

Keeping money in a chequing account or a savings account that pays poor interest, means your money isn’t working as hard as it can for you.

Some of the high interest savings accounts in Canada pay over 2.3% in interest. That means you are losing out on more interest if your current savings account pays less than that, or if you have unused cash sitting in your chequing account (unless you are using it to waive monthly fees).

Want to find the best savings account?

See today's best high interest savings accounts in market here.

#3 Maximize your rewards with the right credit cards

Choosing the right credit cards can maximize your rewards and help you save while you spend. Here is our curated list of the best credit card by categories:

Ready to find the right credit card for you?

See today's best credit cards in market here.

#4 Earn more guaranteed interest with a GIC

Want to start investing but if the current stock market is too risky? Then investing in a Guaranteed Investment Certificate (GIC) is an excellent option for you.

While shorter-term GICs are more "liquid" because they mature quicker, longer-term GIC rates can easily earn you 3.5% or more in interest each year, helping you grow your savings and achieve your financial goals even faster.

Want to get a GIC?

See today's best GIC rates in market here.

#5 Use the 50/30/20 budgeting rule

The rule is relatively simple: 50% of your after-tax income is allocated towards your needs, 30% is for your wants, and 20% is for saving and paying down debt.

The 50/30/20 rule is an easy way to determine how much to save and spend. You can always make small adjustments to the percentage you spend or save in the three categories, but you don’t want to be spending more than 80% on your needs and desires. If that’s the case, it likely won’t be possible to save or pay down debt. Learn more about the budgeting rule here!

#6 Pay yourself first with a RRSP or TSFA

RRSP and TSFA accounts are great way to save and invest money in a tax-efficient way. RRSP contribution is tax deductible but any withdrawal will be considered taxable income. Whereas TSFA is tax free to withdraw anytime but cannot be used as a tax deduction. Whether you invest your TSFA or RRSP savings in mutual funds or GICs, all capital gains and dividends from your investments are untaxed.

Have a hard time choosing? Read more from our expert here on the difference between RRSP and TSFA accounts. If you’re pretty familiar with these options, this year’s RRSP contribution deadline is coming up on March 1, 2019.

#7 Keep yourself updated

Knowledge is wealth, and you can grow both. Our weekly newsletter will keep you up-to-date on all the trends and tips in personal finance. On a roll to read all about personal finance? Check out our curated personal finance reading list here.