5 Smart Money Moves for Personal Finance

Creating strong habits is about developing a routine without thought, and building good money habits pays in the long term.

Creating smart money moves is easier than you think, and all it takes is a little guidance to better manage your personal finances to be prepared for whatever comes your way.


For most the amount of incoming and outgoing money is about the same each month. There can be unexpected or emergency expenses, and possibly more outgoing near year end, but for the most part, things are mostly the same. 

But if you aren’t developing a budget then you don’t have a plan. Some say that failing to plan is like planning to fail. This seems a bit harsh, but there’s some truth to this. When it comes to your money, it just makes sense to have a budget. 

About half of Canadians use a budget according to the Canadian Financial Capability Survey. People that use budgets are less likely to find themselves in hot water with financial difficulties. Budgeting not only help people to stay in control and prioritize their spending, saving and staying on top of their day-to-day finances. About a third of Canadians say they don’t need a budget, but various studies suggest nearly 20% would benefit from using one.

Learn more on budgeting basics 


More live on credit than before, which has put many in debt. In the 90’s the Canadian Credit Market Debt to Disposable Income was about 85%, but more recently it’s about 180% overall for households on average. With several decades of low interest rates and a strong demand for housing the Canadian household debt-to-income ratio is the result of  increased cost of living, expenses exceeding income along with the higher cost of borrowing.


Paying down debt is possibly the most important step towards improving your financial situation that needs to be a priority for your finances. Figuring out how to get yourself out of debt sooner can also mean paying less interest, which can go towards saving more.


Any sort of emergency or unexpected expense can be hard to plan for, but being prepared will make all the difference. Having an emergency fund should be part of your finance strategy since it can help to avoid applying for a personal installment loan to cover the costs.

You might have questions like why to have one, how to get started or how much to save, which we cover in our guide about how you can start an emergency fund to help. 

Borrowing can be expensive, especially if you have fair or bad credit and little choice but to pay higher interest rates. But when you have  an emergency fund available you might be able to avoid borrowing some or all of the amount you need to cover. 

RECOMMENDED: How a Personal Loan Can Help You Save Money 


Whether you want to pay yourself first and save part of your salary each month or to automate payments to certain bills, it’s worth the time and effort. It’s actually not difficult to set up and helps ensure you’re not late with payments, which can affect your credit score later.


Staying current with your finances, which is more than just budgeting, is a great way to stay on top of money management and keeping your finances in check. There are many different types of software and websites available to use for managing your money.


As you begin to budget and look at how your money is spent, you’ll likely discover there are things you don’t like or want to change when it comes to your spending habits. From having too many streaming services or cutting down on eating out, it’s wise to go through your expenses so you can review and evaluate where to cut costs. Just remember to not overdo things while finding places you overspend, because you don’t want to cut all the fun out of things.


Making smart money moves helps ensure you have the funds you need, when you need them. It can also to avoid or remove stress that can come from finances and give you peace of mind when you have things under control.

Making sense of finance one day at a time.