5 Ways To Get Your Finances on Track
It’s far too easy to get overextended on your finances, and most people don’t realize that they’re in trouble until it’s almost too late. When you’re already stretching your finances to the limit, any unexpected bump can send you down the road to bankruptcy. Here are 5 ways on how to get your finances on track:
1. Figure out exactly what you owe.
It can be scary to sit down and look at the big picture, but you need to know the exact number. Once you know exactly what you owe, you’ll be able to make a plan.
2. Look at your total take-home pay for a single month.
This is the most important number, because you have to create a plan where you’ve got more coming in than what you’re spending.
3. Create a detailed budget.
Figure out what you have to spend for the essentials – shelter, utilities, food, and transportation. Don’t count your credit cards or any other expenses here – you need to set your number for necessary expenses so you know what’s left over each month.
4. Take the money that’s left over and start applying it to your debts.
Pay the minimum amount due on every debt except one, and push as much as you can afford towards that balance. Once you’ve paid off that debt, move on to the next. If you make a solid, realistic plan for paying off your debts, it’s much easier to stick to your budget and be responsible with your money.
5. Once you’ve paid off most of your debt, start saving.
Build up your savings in case an unexpected event comes up – you don’t want to have to start all over!
Most importantly – stick to your budget even after you’ve paid off your credit cards. If you stick to your budget and plan ahead for big purchases, you’ll find that it’s easy to stay on top of your finances and avoid debt altogether.
If you’re looking for a credit counsellor in Toronto, get a quick assessment with us today or call us at 416.900.2324. We will help you develop a plan, reduce your interest costs and get out of debt over time.