When is Budgeting Not Advisable?
In its purest form, budgeting involves making sure you’ve got enough income to cover your regular monthly expenses.
Some Canadians can’t (or won’t) budget to manage their finances.
As a result, those people end up not knowing who to pay and when.
Something else that’s concerning is they often fall behind on their debt repayments.
Take a look at these top five reasons for not budgeting in Canada if you feel you aren’t managing your money correctly:
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1. Budgeting is too difficult
Arguably, the top reason many Canadians fail to manage their finances properly is that they find the concept hard.
At a low level, it’s easy to assume that budgeting merely entails writing out a list of monthly payments you have to make.
The problem is, some people may have irregular payments they must make.
And some outgoings may vary each month dependant on other factors.
One example is the monthly grocery shopping bill.
2. Budgeting is time-consuming
For some people, planning their monthly budget is comparable to having needles stuck in their eyes!
They may assume that it will take a long time to calculate what they have to pay and when, and to whom they must make their repayments.
Those individuals might also think that their time is better served to do other things.
They believe that budgeting is a waste of their time, and they’ll end up getting frustrated, trying to figure everything out.
3. Budgeting is only for the computer-literate
The reality of budgeting is that some people feel it’s best left to those that know their way around a computer and a copy of Microsoft Excel.
Let’s face it: spreadsheets make it easy to calculate things, but they can be incredibly complicated for novice computer users.
4. Someone else takes care of the bills
If you’re married or living with your significant other, some couples feel that only one person should take care of the bills.
With that in mind, the other party has no idea what bills get paid or when, because the onus isn’t on them to sort payments out each month.
5. A low income makes budgeting pointless
The sad truth is some Canadians find there’s no point in making a budget because they owe more than they earn each month.
They conclude that there’s never enough money to pay for everything, so they randomly pay their creditors.
How to budget and take control of your finances?
If you aren’t budgeting because of one or more of those reasons, it’s time to take stock of your financial situation.
The first step is to read this handy guide by the Canadian Government on making a budget.
Are your outgoings higher than your income?
If so, it’s worth exploring how options such as a consumer proposal can restructure your debt.
Contact us today to discuss your financial situation and see how we can help you find a realistic solution that best meets your needs.
You can reach us on (877) 879-4770 – we’re here to take your call 24/7.
Information on Consumer Proposals
Consumer Proposals in Canada – An Alternative to Bankruptcy
What is a Consumer Proposal?
How to Amend a Consumer Proposal
What are the Benefits of a Consumer Proposal?
What are the Steps in a Proposal?
Consumer Proposal Eligibility
What Debts Are Erased in a Consumer Proposal?
Is There Life After a Proposal?
Canadian Bankruptcies
How to File for Bankruptcy
What is Bankruptcy?
Bankruptcy FAQs
How Does Bankruptcy Work?
What is the Cost of Bankruptcy in Canada?
How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?
