Three Easy Financial Tricks That Will Make Mom Happy

The sun is shining, the flowers are blooming, and there’s a warm breeze coming through your windows. All signs suggest spring is it on its way. Before you’re consumed by spring fever in a frenzy of yard work, remember, the spring brings more than just the sudden motivation to clean up. It plays host to Mother’s Day — an excuse to spoil Mom for putting up with your antics as a kid. But after the cards, the flowers, and the family brunch date, Mother’s Day can get a little expensive. If you don’t have the cash to spare, don’t worry! Mom would prefer spending time with you than receiving a gift you can’t afford. She’d rather you spend your money wisely. So in honour of Mother’s Day, check in with these mom-approved three easy financial tricks.

1. Make a budget.

According to last year’s stats, the average Canadian spent $70 on Mother’s Day, though some spent as much as $186. You won’t know if you can realistically spend $70 or nearly $200 until you’ve made a budget. This financial plan helps you figure out how much cash you have left over after you pay for the necessities — things like rent, insurance, and groceries. It will also show you how you spend your money on things that aren’t necessities, potentially revealing the ways you’re wasting money on things you don’t need. By eliminating these purchases from your day-to-day life, you could free up a lot of cash.

2. Invest responsibly.

If you use your budget successfully to eliminate unnecessary spending, your account balance will start to go up. Seeing this number grow is an exciting thing for anyone who’s lived paycheque to paycheque, but don’t let this excitement go to your head. You may be tempted to make those purchases you’ve been eyeing for a while. Perhaps you’ve been dreaming about visiting New York City for years, or maybe you just want to upgrade your handset to the new iPhone X. You need to think carefully about how you spend these newfound savings.

While it’s important to treat yourself from time to time, don’t go overboard. Financial experts recommend you set aside 10–20 percent of your net income for savings. But don’t let it sit in a basic savings account. Look into high-interest savings accounts and tax-free savings accounts to see how you can earn even more money on these savings. For long term savings, check in with RRSP, GICs, and Mutual funds to build a nest egg for yourself.

3. Borrow sensibly.

Even with a solid savings plan in place, borrowing is a part of life. Mom did it when she took out a mortgage when buying your childhood home. She did it again when she took out an advance to repair the damages a flood did to that house’s basement.

Sometimes you need a little extra help to cover mortgage payments and unexpected repairs. While traditional banks are a great source for the larger purchases you need to make, they’re often a slower, less convenient source for small concerns. For one-time financial hiccoughs, payday lenders provide a faster alternative. In Canada payday loans from companies like GoDay offer the easiest way to borrow money when you need immediate assistance. It relies on an automated service to process applications 24/7, so you can access the cash you need whenever you need it.

Just promise mom something. When it comes to your choice of investments and personal loans, do your research. Each financial product comes with its pros and cons, so they won’t all be suitable for your situation. When you take the time to look into budgeting, investing, and borrowing, these three easy financial tricks will impress mom with all your newfound money know-how.