Tuesday, March 31, 2015



Top Five Mistakes

Simple solutions to stop living paycheque to paycheque

By Jason Brown, Envision Financial, First West CU

pril Fool’s Day may be a great day for fun and pranks, but mishandling your money any day of the year is no laughing matter. Wealth advisors at Envision Financial, a division First West Credit Union, recently revealed the biggest mistakes people are making with their money right now.


The top five money mistakes are:

• Living paycheque to paycheque
• Not saving for retirement
• Not sticking to a budget
• Carrying too much debt
• Using high-interest credit cards 

“The biggest mistake I see people make is living paycheque to paycheque,” says Tanya Wilson, investment advisor at Envision Financial. “What’s most interesting to me is there is a simple solution to this problem, namely pay yourself first.”


“I have had clients completely turn their financial situation around by having their pay cheques directly deposited into their accounts and then automatically transferring 10% to retirement and 10% to short-term savings before they get the chance to spend it,” she says.


This straightforward strategy will have even the most liberal spenders squirreling money away for retirement and at the same time eliminating the risk of using credit for life’s little emergencies and unexpected expenses.


To help preserve the remaining cash left in your bank account after the automatic debits, Wilson recommends reviewing the things you automatically pay for but don’t use, such as unlimited calling, texting on your cell phone or even home phone service. 


Another easy way to save is to make smart swaps.


For example, don’t eliminate your daily trip to the coffee house, just buy a less expensive drink—like $2 drip coffee instead of a $5 mocha latte. “That takes your coffee budget from $1,825 to $430 per year, leaving you with $1,395 in wiggle room,” says Wilson.


For an additional boost to your emergency savings, sign up for a debit card savings program that rounds up every purchase to the nearest dollar and transfers the additional amount to your savings account.


Getting your finances in order can be done without sacrifice—and that’s no joke.


About Envision Financial
Envision Financial is a premier provider of banking, investment and insurance services for residents and businesses throughout the Fraser Valley, Lower Mainland and Kitimat regions. As a division of First West Credit Union, B.C.'s third-largest credit union with 54 branches and 42 insurance offices throughout the province, Envision Financial brings innovative products, an extensive branch network and local decision making to the banking experience. For more information on Envision Financial, visit www.envisionfinancial.ca.


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