3 Tips to Help You Boost Your Financial Confidence in 2023
This year, gather all the knowledge you need to make financial decisions that work for you.
If the whirlwind end of 2022 left you feeling drained—especially in the finance department—you’re not alone. Gift giving and celebrating all cost a bundle, and now you have to deal with high inflation, too. Plus, tax time is approaching. It’s totally normal to feel overwhelmed and wonder how your bank account will handle the strain. But even if you’ve run into credit card debt, you can bounce back for 2023. Follow these tips to take charge of your money and build financial confidence that lasts.
Re-evaluate the credit card(s) you’re using.
If all you get out of paying by credit card is a mountain of debt, it’s time to rethink the type of card you’re using. One of these options might be a fit:
- Cash-back credit cards: Some credit cards will give you money back on the things you buy most (like gas, groceries, transit and recurring bills), so you’ll end up making money on items you’d have to purchase anyway. These cards may also come with perks, like travel insurance and discounts at restaurants and retailers.
- Rewards credit cards: Instead of earning you money back, rewards cards earn you points. You can then use those points instead of cash to buy things you want, like flights for a much-needed vacation.
There are other cards available, too! NerdWallet can help you understand the different credit cards available in Canada—all in one place—so you can choose one that makes sense for your spending habits.
Consider opening a high-interest savings account (HISA).
Interest rates have been on the rise in Canada lately. While this makes it more expensive to borrow money, it often makes it more profitable to stash money away. A high-interest savings account, or HISA, offers better rates than a traditional savings account, so your money grows faster. And there are numerous factors you might want to consider before you start moving around your funds. Here are some things to think about:
- Interest rate: What’s the percentage you’re making on your money? Be sure to watch out for promo rates that won’t last forever.
- Minimum deposit: Some HISAs can only be opened with an initial deposit of a certain size, sometimes hundreds or even thousands of dollars.
- Service fees : Will you be charged for withdrawing or transferring money from your HISA, and if so, how much?
Depending on your spending habits, now might be a good time to open a HISA. NerdWallet can help you compare your savings account options.
Put some funds in a guaranteed investment certificate (GIC).
If you’re looking for a low-risk way to invest your money, putting funds into a GIC could work for you. With most GICs, there’s no risk of losing your initial investment, but that money will also be tied up for a certain length of time and you won’t be able to access it. Typically, the longer you invest your money, the better your interest rate. However, there are term GIC options, too.
To understand the different GICs on the market, take a look at NerdWallet’s picks for best GIC rates in Canada.
Want help making financial decisions? Turn to NerdWallet for info on banking, mortgage rates, credit cards and more—all written by Canadian experts for Canadians. Not only will you discover articles and tools to help you make smarter financial decisions with confidence, but you’ll also be able to shop different financial products and keep tabs on your finances and credit score.
