Five ways to boost your money age and get your finances on the right track

If the thought of sorting out your finances makes you feel uneasy, you're not alone. Setting yourself up for long-term success isn't an overnight fix and takes years of good habits! It's easy to get caught up in everyday spending without creating a financial plan, which is why Financial Commentator Pattie Lovett Reid walked us through how you can increasey our odds of not out-living your money!

CREATE AN EMERGENCY FUND

It's important to remind yourself that things can often happen unexpectedly. Having an emergency fund will come in handy for numerous situations. Whether your car breaks down or your roof needs fixing, a cushion of money can go a long way. Establishing an emergency fund will also allow you to work towards a certain goal to feel protected. Work towards tucking away 3-6 months worth of living expenses. Decide on an amount (whether it's $25 or $100) to set aside per month until you match at least 3 months of your monthly income at a minimum. 

BE AN ACTIVE SAVER

From a work bonus to your tax refund, save 50% of any extra money you recieve. It may seem like a large chunk, but you'll thank yourself later. When it comes to your regular salary or pay cheque, tuck away as much as you can after paying your necessary bills and expenses. You can start with 10% and work your way up as you adjust your spending habits.

PLAN FOR FUTURE HEALTHCARE COSTS

Putting aside a bit of money each month for future costs is cruicial, especially health care. You never know what could potentially happen as you get older so the more prepared you are, the better. Take advantage of any benefits that your company offers, whether it's a package or a sponsored matching program. 

PAY OFF YOUR DEBT

As daunting as it might be to pay off your debt, it's the biggest step you can take towards improving your money age. Try and tackle your debt by paying off the one that's charging you the highest interest rate first. Once you're able to get rid of your debt, get into the habit of only spending what you can afford on your credit cards, then pay them in full each month. 

LOOK AT YOUR SPENDING HABITS

Always compare prices, quality and reviews when making a purchase. Look for products that best suit your needs rather than just buying the first item you come across. While it might feel better to spend less on a jacket or home appliance tool, cheaper isn't always better. Sometimes spending less can end up costing you more in the long run. However, looking for a good deal is always a great idea.