Following a solid budget plan will keep you from needing to consider bankruptcy or a consumer proposal.
The easiest way to prevent financial problems.
Money worries? Financial stress? Sleepless nights? Maybe arguments at home? Our LIT (Licensed Insolvency Trustee) wrote this article on the easiest way to prevent financial problems:
Here are some tips on the easiest way to prevent financial problems.
- Make a list. Sit down and write out your financial stress points. Dealing with all your financial transactions may be overwhelming. Focus on two or three financial problems you can manage now.
- Track your spending. There are two good ways to do this.
- If you have online banking you will be able to break down your spending and then identify a few things you can do to cut back. Periodically check to make sure you’re on target. Download your bank’s app to your smartphone so you can check your finances easily and often.
- Get an app at the App Store or Google Play. Do a search for “Spending Tracker”. Some of the apps are free. When you make an expenditure enter the information on your app. It takes only a few seconds. The app will summarize your spending by week, month and year.
- Set a reasonable goal. Based on the savings you identified in Tip #2, set a monthly savings or debt payment goal for yourself that you can reasonably live with.
- Pay yourself first. Each payday have a fixed amount go into your savings account.
- You may, on occasion slip up. Having a special dinner for your spouse’s birthday is OK. When you do go over your budget, commit to setting aside a little extra the next time you get paid.
- Get your friends and family to help. Explain your financial goals to family and friends. Ask them for ideas on how to save. They will give you encouragement and support.