Evaluation of your financial standing is the most important step in your personal money management. Make the necessary adjustments to meet your needs and reach your goals.
Here are some helpful tips on creating a successful budget:
1. Have at least two bank accounts.
a. Personal chequing – used for all household regular monthly expenses.
b. Savings – to meet goals, and acts as a safety cushion for emergencies.
2. Make sure everything you spend is listed in your expenditure budget; including any small items such as coffee, gum, etc.
3. Leave your instant teller card at home. The temptation to withdraw money may not be as great if you have to physically go into the bank each time.
4. Use your “piggy bank” to help you save.
Although this is not a planning tool, putting away your change on a daily basis can help you save for small ticket items.
5. Look for ways to reduce your expenses. There are dozens of handy tips to help you cut down on your expenses.
6. Minimize the number and usage of credit cards.
Material courtesy of Credit Canada Debt Solutions, a non-profit charitable organization.