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7 Financial Hacks Everyone Should Know

Male hand holding Canadian coins

Did you know that there are hacks that can be used for your finances? These are legal advantages that you can take advantage of to maximize your economic health. Here are seven of our favourites.

Put Your Home’s Equity to Work

You could have equity built up in your home, just waiting to be tapped and put to use. If you already have a mortgage, you will find that the process is more straightforward than houses that do not. However, your total borrowing capacity is usually higher on a home that is clear, so it all works out.

There may still be an appraisal required to close the deal, but the good news is that interest payments on home equity loans are typically tax deductible.

Automate Your Savings

Sometimes the greatest hack is the easiest hack, like this one. Once you get it set up, it requires no work on your part. In fact, it even works best if you forget about it. That’s the beauty of automated savings.

Once you do forget about it, your savings will continue to climb. And since the funds are taken out automatically, you won’t even miss the money. You can set this up through your bank or online. Even a small amount every week or every month will add up!

Pay Insurance Premiums Yearly Instead of Monthly

A lot of people pay for their insurance using a monthly plan. However, you can shave off a few dollars by paying for it yearly instead. Most insurance companies will charge you around .09% over the year’s term if you pay monthly. By paying up front, you will save this money.

Use a Payday Loan Strategically

If you have an unexpected expense come up and all your cash is committed already (no extra to be found), instead of incurring penalties from your bank, consider a payday loan. Payday loans are quick, easy and timely. Instead of waiting for the financial hammer to fall due to a critical missed payment: take control, pay back the loan on your next payday. Your credit score will thank you.

Use a TFSA

Tax-Free Saving Account (TFSA) can help you accumulate money quickly and easily. To really maximize the savings advantage that a TFSA can offer, consider making some money on the side doing something you enjoy. By putting the money from a side gig into your TFSA, you keep it separate from your other finances. This will allow you to quickly gauge your success as well as keep track of money made. Who knows, it may turn into a new career, especially if it is something you feel passionate about and enjoy doing.

Use Rewards Cards

Many credit cards offer rewards for using the card in transactions. By getting and using this type of credit card, you can reap the rewards for purchases that you were going to make. It’s like free money. Just make sure you guard against spending more than you normally would – guard against impulse purchases and offers of more points for things you wouldn’t normally buy!

Use a Zero Interest Credit Card to Pay Down Debt

If you have an outstanding credit rating, this may be the hack for you. Many card providers offer a zero-interest credit to those who qualify. By using this card to pay down debt you have other in other places, you can improve your credit score even more as you save money on interest charges. The only downside with this option is that once the promotional period has ended, your interest rate will jump up to a normal credit card rate.

We hope you will find these financial hacks useful. But if, despite your best efforts, you find yourself derailed by unexpected expenses, consider a timely, manageable payday loan from Pay2Day. We can offer you a quick and easy financial solution.