A revealing study
According to a Trans Union study , the average consumer in Canada will be in debt of $ 28,853 at the end of 2014, excluding their mortgage. These days, having debt is a common condition. However, the higher the amount of your debt, the more rigorous your budget planning will have to be, because you will have to allocate a considerable sum to it. Otherwise, budgeting is a very effective method of staying away from debt! Today we offer you 5 steps that will help you achieve your financial goals. However, if you feel that you have lost control of your finances, come see an insolvency counselor free of charge .
Know your sources of income
The first way to be in control of your finances is to know your sources of income on a monthly basis. In addition to your salary, write down any money you earn, such as bonuses, dividends, tax refunds, allowances, etc.
Make an exhaustive list of your expenses
In 3 categories: fixed, flexible and discretionary expenses. A fixed expense must be paid every month such as a mortgage for example. The flexible spending are the ones you need, but you can control groceries, for example. The discretionary expenses are those that are not mandatory, like eating out.
Take stock of your financial picture.
If your total expenses are less than your income, you’re on the right track. We advise you to allocate your surplus to savings. If your expenses are greater than your income, you should redefine your priorities and minimize your discretionary and flexible spending, if possible. It will then be possible to save to pay your fixed expenses on time and avoid late payments.
Stabilize your situation.
Learn to spend wisely and within your means. This is the best way to keep your budget under control and create a surplus. Living within your means is very essential learning! It is always possible to improve your habits .
Consult a specialist
If it is impossible for you to earn more income than your expenses. When the minimum amounts due are impossible to repay, it is necessary to consult an insolvency expert at Groupe Leblanc Syndic to definitively curb your indebtedness and the harassment of creditors.
By following this method, you are putting the odds in your favor. In addition, you will get a real picture of your financial situation and concrete avenues to achieve your financial goals and dreams. If, however, you don’t hold up anymore, bankruptcy or the consumer proposal could be an effective solution for you.
Are you using a budget to manage your finances? Do you believe in the usefulness of the budget grid? You can answer these questions by leaving us a comment below and we’ll be happy to chat with you.