These Tips for Managing Your Money are Presented by a Licensed Insolvency Trustee
These Tips for Managing Your Money should help you keep your finances under control.
Tip #1 – Track your spending:
Most of us don’t have a clue of how much we are spending. It’s drudgery writing down everything you spend money on. Then you forget to take a pen or pencil with you. The next thing you know you have missed making a note of so many items that you just say that it’s not worth doing.
The solution is simple. There’s an app for that. Go to the App Store or Google Play and do a search for “Spending Tracker”. You can download a free app. It’s easy to use. When you spend for something just open up the app and note what you purchased and how much you spent. It takes only a few seconds to enter each purchase.
Tip #2 – Make realistic financial goals:
Setting clear and realistic goals, following them, and tracking your own progress is the key to success in pursuing all of your personal financial goals.
Set a specific, measurable and realistic goal. Don’t say: “I want to be rich.” Instead say: “I want to save $4,000.00 in two years by putting $167.00 a month into my savings account.”
Tip #3 – Pay your bills on time:
Paying your bills on time is the best way to maintain and then improve your credit rating.
The following habits will assist you:
- Open your bills as soon as you receive them;
- Write down all your monthly, quarterly and yearly payment dates;
- Set up automatic payments if possible;
- Have an emergency fund.
Tip # 4 – Control your credit card use:
Don’t use more than 30% of your card’s limit. This will illustrate that you are responsible and will improve your credit score.
Set up a plan to pay off your high-interest credit card debt, and still save a certain amount for your emergency fund and investments.
Tip #5 – Keep your finances organized:
You cannot make good financial decisions (spending, saving, and investing) if you don’t know your actual income, expenses, and investments. That is why you should have a monthly budget. The app we described in Tip #1 will summarize your income and expenses by week and month. Make sure you also keep your bills and documents in a safe place.
If you have any questions about this or other aspects of bankruptcy or consumer proposals you can set up a FREE + CONFIDENTIAL consultation with our licensed insolvency trustees You can also call Bankruptcy Canada directly at 1-877-879-4770 and a Government Licensed Insolvency Trustee will perform an evaluation and contact you.