TD approached me to see what I think about the new TD GoalAssist app and have kindly sponsored this post. All views and opinions expressed represent my own.
I’ll start off by saying that I’m not an expert when it comes to investing – or saving money in general. I’ve never been the guy who’s super frugal or extra flashy, but I do believe in treating myself every now and then. After reading some literature on finance a few years back, I changed my outlook on how I spend my money daily. One of the big takeaways from my readings was to live within your means and save – even if it’s just 10% of your income.
As I sit here and write this article, I’m reflecting upon the valuable lessons I learned from those books. It goes without saying that 2020 was a year of uncertainty, but was also a year of learning and trying new things. And although we’ve already kicked off 2021, it’s never too late to build out your resolutions for the New Year ahead – especially when it comes to developing better financial habits and learning some new financial skills.
Thanks to resources from TD Canada, upskilling your financial habits has never been easier, especially with their latest tool TD GoalAssist™ — a new goals-based investing app from TD Direct Investing. This easy-to-use mobile app has helped me learn a ton and become a more confident DIY investor. And I believe that anyone can benefit from the FREE educational videos and foundational investing courses that this app offers (more on this later).
To help you start planning for the year ahead, I’ve come up with five key things that you and I can do to invest in ourselves and establish better habits for 2021, and beyond.
1. Keep it simple and set realistic + actionable goals and habits.
When you’re first starting out with a financial plan, everything may seem daunting and unachievable. So, don’t discredit yourself for taking even the smallest of steps at the beginning. Whether that’s just starting to save money or searching for tips on getting started with investing – that’s still progress! I’ve found the TD GoalAssist app to be a great resource for first-time investors because it allows you to build out a customizable investment plan that aligns well with your personal goals, no matter how big or small. Because there are no minimums, the app really allows you to start as small as you want to and at your own pace, whether that’s for saving, investing in stocks or TD ETFs!
Once you’ve started to save and kickstart your investing journey, work towards maintaining that motivation to grow your savings – whether it’s to pay off loans or save towards a down payment. For example, when I was trying to pay off my tuition, I was automatically setting aside money from my pay cheques into a new account I didn’t have access to. Paying into that account first helped me hide that money away and forced me to live within my means a little better. Over time, it started accumulating in ways that surprised me – and that ultimately helped me with my goal.
2. Consider opening a TFSA or another form of savings account, if you don’t already have one.
This is an important one – and in my opinion, everyone should have a savings account of some sort! If you’re not sure what a TFSA (Tax Free Savings Account) is, it is a savings account that does not apply taxes on any contributions, interest earned or capital gains – and can be withdrawn tax-free (you can view the contribution limits here). It’s also worth mentioning that a TFSA doesn’t just have to be a “savings account” – it can also function as a vehicle for your investments (ex. TD GoalAssist users can open a TFSA and invest in their TFSA account). This makes it a great and simple way to start saving, whether you know a lot about investing or not.
As I mentioned earlier, a savings account is also a good place to set aside some money that you’d like to put towards something else, including your investment strategy. One day, the amount you’ve been wanting to save will be in your account and then you can use it as you please!
3. Become more mindful of your spending and future financial goals
In my opinion, it’s not what you make, it’s what you save.
You can use goal planning and tracking tools within TD GoalAssist to understand how much you’ll need to save each month to help you achieve your goal. If you’re trying to save to buy a house, you’ll naturally have to be realistic and understand how much you’ll need to save to reach your goal.
Once you have started to implement better saving habits, investing in stocks or ETFs might be a good next step for you depending on your financial situation. Regardless of the account type or investment you choose, you can easily open a TD GoalAssist account online and start transferring money in once your account is open.
4. Make time for yourself and your needs + wants
At the end of the day, taking care of yourself is the most important thing here – and that’s not selfish at all! I’m a firm believer in being a better version of myself, so that I can be better to those around me. If you find you’re being roped into commitments that you really don’t want to be a part of, start saying ‘no’ more often – and your future self will thank you. If you’re trying to save for a vacation or that new car you’ve always dreamed of, ordering takeout out every night or going for socials all the time surely won’t get you there – so don’t be ashamed of saving money to invest in your future. And to be fair, that has become a little bit easier now that we’re spending more time at home.
5. Take up a new hobby or try new activities
This isn’t specifically tied to saving money, but it’s one of those things that can open doors to new opportunities and expand your horizons. I like to consider it an investment in yourself – because if you sit around and dwell on the things that you want to do, you’ll end up doing none of it. Try approaching new things that you’re curious about with action – and take that next small step towards exploring that idea.
And don’t forget to track your development progress, and reward yourself every now and then when you reach certain milestones. You got this – so keep up the great work and start investing in yourself today for a better you in the future!
2 Comments
Enjoyed reading this piece! I think making time for yourself is important and ties in to being well financially. Now I am motivated to find myself a cost effective hobby haha
Thanks for reading Phil, completely agree with you! Best of luck finding that hobby 🙂