Five Easy Ways to Improve Your Financial Wellness in 2022

While we were hunkered down at home over the past little while, there wasn’t a lot to spend money on. Did you manage to grow a small nest egg over that time? The Bank of Canada reported that the average Canadian household put aside $4,000 in 2020. If you did, then you’re already on your way to financial wellness. Keep that good thing going. Here are five easy ways to improve your financial wellness in 2022:

• Set up a savings plan and pay yourself first
• Open an RRSP, TFSA and/or RESP 
• Start paying down higher-interest balances
• Look for extra ways to save
• Get full value on things like auto insurance

Set up a savings plan and pay yourself first.

 Between bills and everyday expenses, saving can be challenging. The trick is to take money right off the top, so you never see it in the first place. Set up automatic deposits from your chequing to your savings account. Have your employer direct deposit your pay into your chequing account, and have your bank transfer a portion into your savings account at each pay period. Start by transferring what you would spend on lunches or coffees over a two-week time frame. Then increase it a little over time. 

Open an RRSP, TFSA and/or RESP.

The Government of Canada has some nice incentives to help you achieve financial health. An RRSP (Registered Retirement Savings Plan) can help you save for retirement while minimizing your taxes. A TFSA (Tax-Free Savings Account) lets you put aside and earn interest on investments without paying taxes on them. An RESP (Registered Education Savings Plan) helps you save for your child’s post-secondary education, earn money tax-free, plus collect a government bonus of up to $500 each year. Set up automatic withdrawals with your bank towards any or all of these plans and let compounding interest help your savings grow.

Start paying down higher interest balances.

Credit cards can have ridiculously high-interest rates, which is likely why nearly one-third of Canadians are in credit card debt. Continue to pay down all outstanding balances on time, but use any extra money at the end of the month to chip away at those higher-interest balances.

Look for extra ways to save.

Beyond coupon-clipping and looking for sales, there are other ways to work towards financial wellness. A CAA Membership is one. Showing your CAA card can save you money at over 124,000 retail and service partner locations in North America. Membership can also net you some serious savings on CAA Auto and Home Insurance, CAA Travel Insurance and when you shop at: shopwithcaa.

Get full value on things like auto insurance.

While saving is one way to work towards financial wellness, ensuring that you’re getting the best value is another. CAA Insurance offers complimentary policy reviews to make sure you’re properly covered and enjoying the maximum benefits. If you’re an Ontario motorist who drives less than 12,000 km annually, you can enjoy auto insurance savings by switching to CAA MyPace^®, Canada’s only pay-as-you-go auto insurance payment plan. To see if you could benefit from potential auto insurance savings, visit CAA Insurance online or call: 1-888-307-6510.

Financial wellness is a journey that requires a little effort. But once that effort becomes a habit, it gets easier to save. Every action helps contribute to that end goal: improving your financial wellness for the future.