Better Financial Habits in 3 Simple Steps 

Talking about financial literacy can be intimidating, but with some straightforward tips and tools, it doesn’t have to be. Let’s start by looking at the basic principles that help build better money habits. We can even break it down into 3 actions: Budget. Save. Earn. So, whatever your financial goals look like, here are some simple steps you can take toward them.

1. Budget like you’re baking (no winging it)

A comprehensive budget is like a recipe for your finances. Each ingredient (expenses, in this case) has its appropriate portion. When you follow the recipe, you end up with the results you’d hoped for–and not a collapsed soufflé!

One popular technique is the “50/20/30 budget”. This means 50% of your net income goes to your needs (rent, groceries, gas etc.), 20% to savings (short or long term), and 30% to your wants (another toy your cat may or may not love). This is a good guardrail to ensure you’re taking care of business, while also enjoying your money.

🔥 Tip: The PC Financial^® App can help you track all the spending you do with a PC Money^TM Account or PC Financial^® credit card. Check out the Insights feature for your exact spending by day, week, and month.

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2. Set money aside for a rainy day (or a sunny vacay)

Saving money every time you get paid doesn’t just protect you in a pinch. It can also set you up for success as you approach financial milestones, like buying a car or a home reno. Or empower you to make short term decisions, like checking off that bucket-list travel destination this year. When you consistently set aside savings, big or small, they can really build up over time.

🔥 Tip: It’s not just about how much you save, but also finding ways to get more value from your spending budget. For example, earning monthly PC Optimum^TM points on payday by setting up direct deposit¹ to your PC Money^TM Account. Or earning points when you use your PC Financial^® credit card on everyday essentials like groceries, gas, health & beauty–even dining out and monthly subscriptions.

3. Give your savings time to grow–patience pays!

There are several ways to make your savings grow–stocks, bonds, alternative investments like crypto, and more. But in addition to varying levels of risk, another consideration is the timeline for your goals. If you have shorter term plans over the next 1-3 years that require stability and easy access, a high interest savings approach, like the new PC Money^TM Account savings feature² (opens in a new window), could be a great option. With an everyday leading interest rate³ that doesn’t plummet after the initial offer period, this feature was designed to help you work toward savings goals like your next vacation, a new TV, upgrading appliances, or your rainy-day fund.

🔥 Tip: Use your PC Money^TM Account to automate savings through direct deposits or scheduled transfers on a monthly, weekly, or biweekly basis.

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Ultimately, a sound financial strategy can help you develop the right habits, use the tools available to you, and stay the course toward financial wellbeing. That means making the most of your money, while you focus on a life well lived.