TD: Good Financial Habits To Develop

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Daily routines and busy lifestyles make it easy to get swept up in what needs your attention now. While you may have good saving and spending habits, taking time to review your finances and to plan for the future is important to do. That's why it's good to look at some steps you can take to maintain or develop positive financial habits right now. Here are four ideas for bringing good financial habits into your life.

Make a Budget or Revisit Your Existing One

Developing a budget is a valuable habit that helps you stay financially prepared. It allows you to see where and how you are spending and saving, and can help you prepare for unexpected situations. An up-to-date budget helps prioritize expenses and identify ways to reduce spending, which is especially useful if your circumstances change suddenly.

While your fixed expenses may remain constant, it is important to review other expenses periodically. This review can help you find areas where you can make changes or reductions. Revisiting your budget frequently also allows you to identify additional savings opportunities and adjust your spending accordingly.

Track Your Spending

Tracking your spending is as important as following a budget. Using an online app like TD MySpend, which tracks expenditures through TD deposit and credit card accounts, can provide insight into your spending habits. It helps you distinguish between “needs,” such as groceries and home expenses, and “wants,” like entertainment and special treats.

Your spending may vary due to seasonality and external factors, but a tracking tool like TD MySpend can clarify where your money is going. This helps ensure you are spending on what matters most to you.

Set Long-Term Financial Goals

While monitoring daily or weekly spending is crucial, don’t overlook your long-term financial goals. Changing circumstances can make it challenging to focus on these goals, but staying in touch with your TD advisor can help you balance immediate needs with long-term planning.

Build an Emergency Fund

Starting or continuing to contribute to an emergency fund is a wise decision. Allocating a portion of your budget to savings can create a fund for unexpected expenses. Contributions don’t need to be large; even small amounts can accumulate over time.

Consider using automatic savings tools like the Simply Save Program, which sets aside a small amount each time you use your credit or debit card. You can start with as little as $0.50 up to $5.00. Alternatively, you can set up a pre-authorized transfer from your chequing to your savings account according to your income flow and budget.

Disclaimer: This content provides general information on current topics and may not apply to all situations. Seek personalized advice from a professional or subject matter expert regarding your specific circumstances.

 

References

TD Bank. (May 22nd, 2022). Good financial habits. TD Bank. https://www.td.com/ca/en/personal-banking/advice/growing-money/good-financial-habit