How Truthful Are You About Your Finances  - Bankruptcy Canada

According to studies, only around 49% of Canadians feel that they are always truthful about their financial situation.

45% tend to tell white lies, and 6% admit that they always lie.

Many withhold the truth because they want to protect their loved ones, according to 36%.

This was all revealed in a poll performed by Ipsos-Reid on behalf of BDO Canada. 

When people aren’t truthful about their financial situation, what are they withholding information relating to?

Usually, it’s their income, savings, and debt levels.

Some Canadians even admit to lying to make themselves look better. 

Top reasons for lying about finances include:

 

  • To protect loved ones from worry.
  • Feeling like a failure.
  • Family expectations.
  • Keeping up appearances.
  • Culture/learned behaviours.
  • Denial.
  • Lack of financial literacy.

 

Although many Canadian’s admit that they are not truthful regarding their finances, they do admit that there are things that could be done to encourage them to speak out about the financial troubles that they are having.

This includes:

 

  • Not feeling like they are being judged.
  • Not feeling ashamed/uncomfortable.
  • Somebody else opening up about financial difficulty first.
  • If they knew the relationship with the person would not be put in jeopardy by admitting their troubles. 
  • If they knew how to talk about finances (many people have been taught that it’s impolite to talk about finances or simply do not know how to broach the subject).

 

With this in mind, how truthful do you think you are about your finances?

If you resonate with some of the information above, then it might be worth looking into things that could help you to open up. 

How To Open Up About Your Finances 

Ensure You Trust The Person You’re Going To Speak To

If you decide to open up to somebody, they should be somebody you trust not to judge you or overreact.

If you share a bank account with your partner or your financial decisions could impact them, then you should tell them.

However, it might be better to do this with the help of a third party if you’re worried about their reaction.

Telling a parent, sibling, or friend first might be the first course of action if you need to tell somebody that your decisions will not affect in a negative way. 

Pick A Good Time 

It’s probably not a good time to open up about your finances when you’ve been drinking, or the other person has been drinking.

It’s not a good time to do it in the middle of a big fight, either.

Picking a relaxed, neutral time should make it a little easier. 

Schedule Regular Money Meetings 

Once you have admitted what has been going on with your finances, you can schedule regular money meetings – this is especially important to do with your partner if you share an account with them or are planning a future.

These meetings will allow you to go through your budget and make sure it’s still working for you, as well as go through credit card statements and other statements to make sure you’re keeping up with payments.

You can also plan for anything you might have coming up in the future, such as a trip or a birthday.

Staying ahead of everything you have coming up will make taking back control of your finances so much easier, and you’ll be able to allocate a suitable amount of money to your debts. 

Come Up With A Budget

A budget is so important.

It means you’ll have peace of mind as you’ll know exactly how much you need to put towards your debts to get them paid off within a certain timeframe, and that you have enough money for things like food, fuel, and other essentials.

Ultimately, your budget should be realistic.

If you can’t stick to it in the long term or afford a small treat here and there, you’re going to end up in debt again. 

Educate Yourself As Much As Possible

There are so many resources out there that you can use to educate yourself.

Listening to podcasts, reading books, and watching YouTube videos can help you to become more financially literate.

It’ll also help you to examine how you got into debt in the first place.

Was it a series of unfortunate events and you simply had no savings, or were you trying to live a lifestyle that you couldn’t afford?

Being honest with yourself will help you to stay out of debt in the future. 

Look After Your Well Being  

As you’re being truthful and paying off what you owe, make sure you look after your well being.

Find ways to treat yourself that doesn’t require a ton of money.

Take a long bath, pamper yourself with things you already have in the house, and cook yourself a nice meal at home rather than eating out.

Meditate, exercise, get plenty of sleep, and do everything you can to keep your mind healthy.

Taking care of yourself will help you to keep any stress around the subject at bay. 

Ask For Help

Asking for help can be tough, but it’s often the best and most effective step to making a change.

If you don’t feel like you can do it alone, ask for help.

It’s totally within your power to make a change if only you’ll ask for and accept the help you really need.

See if a friend will keep you accountable, and look into professional advice. 

Get In Touch With Bankruptcy Canada Today 

Bankruptcy Canada can offer professional advice for those struggling to come clean about their financial issues.

There’s a solution for every situation, and we can help you to explore your options.

If you want to make sure you end up with a solution that you’re comfortable with, give us a call today and we can help. 

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