7 Great Tips On Creating And Maintaining A Budget

7 Great Tips On Creating And Maintaining A Budget

A budget can help you keep track of your spending, prepare you for unexpected expenses and help you find ways to save money. Here are some great tips on creating and maintaining a budget:

  1. Set Realistic Goals. Goals for your money will help you make smart spending choices.

  2. Identify your Income and Expenses. You probably know how much you earn each month – but do you also know where it all goes. Find out by tracking what you’re spending.

  3. Separate Needs and Wants. Ask yourself: Do I want this or do I need it? Set clear priorities for yourself and the decisions become easier to make.

  4. Design Your Budget. Make sure that you are not spending more than you make. Balance your budget to accommodate everything you need to pay for.

  5. Put Your Plan Into Action. Match your spending to when you receive your income. Decide ahead of time what you’ll use each pay cheque: allocating your money for your necessities (house, food, and utilities), placing your money for debt payments, unexpected expenses, savings, etc. This will protect you from going into debt further.

  6. Seasonal Expenses. Things will “just come up” such as school expenses, new shoes or an annual membership. Set money aside to pay for these expenses so you can afford them without going into debt.

  7. Look Ahead. Getting on track with a budget will take time. You’ve lived all this time without a spending plan, so give yourself time to adjust. Don’t be afraid to ask for help if things aren’t falling into place.

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.