Responses

Pay Yourself First a phrase commonly used in Personal financing and retirement planning, it means to take a percentage of your paycheck and put it into your investments before spending any money. It's an effective way to make sure users continue to save every month. 

  Using this method teens and young Canadians today can start saving their money towards a financial goals they have in the future such as buying a house, car or vacations. How it would work for example is if I took 20% out of my 100$ pay, for cleaning, and put it into my savings account and investments I would, after 12 months, have 240$ worth of savings and depending on what I get for interest returns depends on how much money I make off of investing. If every Canadian were to apply this concept they would be making money off of their money while saving it and also not have to worry about losing their money by spending it as soon as they earn it. Another example of paying yourself first is a friend of mine he saves 50% of his pay check now which he can use later in the future if he wants to buy something like a car but, on the other hand his brother only saves 5% of his pay which doesn't make a huge difference in his savings account. Also when you compare how each brother saves you can see the first brother will have a mini lottery by the time he is older while his brother will have a smaller amount of cash left in his bank account so the first brother has more options of what he wants to do with his money and what he want to buy while his brother has less options and can fall into debt if he is not careful.

  Budgeting is an estimate of a person or company's revenue and expenses of a chosen period of time. The use of budgeting is a very small economic concept that has multiple variations for example a surplus budget means profits are predicted, or a balanced budget means that revenues are expected to equal expenses, and a deficit budget means that expenses will exceed revenues. Canadians can budget their money by taking their paycheck and putting certain percentages of it towards different accounts such as 10% goes to savings, 15% towards investments, 20% towards utility expenses, 30% towards rent, and then dividing the rest of their paycheck between other expenses and then putting the rest into a speeding account. the concept is similar to pay yourself first but in this case people or companies are organizing what is happening with their money in the future so they have a set financial plan.

 If I was to use this concept with my paycheck of 100$ I would have 25% going into my savings account, 25% towards my investments, 5% towards donations, 5% towards my spending account and 40% towards my phone bill. This can be represented by a pie chart:

If Canadians, like myself were to apply this small concept on top of pay yourself first it would help benefit them financially and in the future.