Tag: Budget Tips

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Consumer Obsession Leads Us to Over-spending

The desire to “keep up with the Jones’s” has become more than a social status issue for many people.  Also, it is very easy to get caught up in this during the holiday season. It has become a catalyst for overspending that has consumers running to banks and other lenders looking for ways to finance their purchases. This issue also has countless consumers loaded up with credit card debt so steep it may take them a lifetime to get out of it.

Give your financial literacy a good double-check, and if you are not already practicing the following financial practices, now is a great time to start today:

  • Pay bills on time and balance your check book each month. You can’t know how much you can afford to spend if you don’t know how much you currently have to spend.
  • Stop buying on impulse. If you want something, rather than charging it on your credit card and paying interest, save for the next few month and buy it when you have the money.
  • Always pay more than your minimum balance on credit cards: Get rid of them as soon as possible. You will save money on interest and have more to save for the future.
  • Vow to maintain only “good” debt. This is the type of debt that will increase your net worth: A mortgage on an affordable home, a car loan, or college debt. These will either increase your creditworthiness or make you more employable so you are able to earn more and keep debt to a minimum.
  • Always include some savings in your budget. Many short-sighted people are unable to see their needs after retirement and don’t save. This results in financial difficulty during their declining years.
  • Find out what you don’t know about finances—and learn it. Despite the flood of information on financial management, people don’t take the time to learn.

Finally, in order to put a stop to this financial madness keep in mind the media pull for spending and don’t be drawn into the hype. By being savvy shoppers and savers, the overspending and debt can stop.

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Is money causing stress in your life?

Is your relationship with money causing stress in your life? If so, then it may be time for some financial therapy. Winnipeg-based psychologist and life coach Dr. Moira Somers specializes in financial psychology, an emerging field that explores people’s relationship with money (and why they may treat it the way that they do).

Dr. Somers maintains that our behaviour towards money may stem from our childhood experiences including exposure to money management beliefs and culture. These beliefs in turn causes many disordered behaviour in our adult lives such as chronic debt, overspending, under-earning and using money as a means (whether consciously or not) to exercise power, control or to fill a void.

You can read more about Dr. Moira Somers in the Winnipeg Free Press article by Carolin Vesely, or visit her website at http://www.moneymindandmeaning.com/.

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Getting Your Financial Life in Order

Just as spring is often the time that we clean-out and reorganize our homes, it is a good time to bring some order to our financial lives as well. We’ve put together a few tips to help you do just that.

1. Balance your checkbook. For some people, this may be a ‘duh’ statement, but for others it is actually a big step. If you have not been balancing your checkbook with your monthly bank statement each month, now is the time to start. Knowing that the balance in your checkbook is accurate can relieve a lot of stress and save you plenty of money in overdraft fees. If you’re having trouble getting it balanced, take it into your bank and ask them for help. They can help you get to a good clean starting place for the spring.

2. Write out a monthly budget. It doesn’t have to be overly detailed, just start by listing out all your monthly bills and the average amounts due each month. Then add in budget amounts for groceries, fuel for your vehicles and other expenditures you make that do not come to you in bill form, like entertainment, giving and clothing. Schedule when each bill will be paid on a calendar, based on its due date and when your income comes in.

3. Make an appointment for credit counseling. There are experts available to help you sort through your finances and give you the advice you need. Pick up the phone and make an appointment with one of our credit counselors.

4. Open a savings account. Even if you don’t have much to put into it, open a savings account and begin the process. Determine an amount to deposit into it each week or each month. Perhaps you’ll want to set aside a few dollars from each pay check, or maybe you’ll do the ‘save my change’ game and deposit your extra change each week. No matter how small it is, begin the process of building a savings account for yourself.

These are just four simple steps to help get your financial life in order and heading in the right direction. Spring is as good a time as any to start fresh.

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Time to Rein in Spending

April showers bring May flowers is the old saying. The spring rains wash away the dingy gray of winter and usher in the beautiful bright colors of tulips and daffodils. In much the same way, ‘reining’ in spending can release some wonderful feelings of exuberance and new life as well.

When we over spend and are behind on paying our bills, the stress mounts ,and each new month becomes one to dread, instead of to enjoy. By saying no to our old spending habits in several small ways, we can become free to relax and enjoy life again. Here are a few tips to help you get started.

Make a shopping list and stick to it. If you didn’t write it on the list, you can’t buy it, that’s the rule with this one. That means you need to be very thorough when making out your list. It may take you a while the first few times, but you’ll get used to. You’ll be surprised how much it will help you just to have that sheet of paper that tells you what you can buy and can’t buy when you enter a store.

Don’t carry your credit card with you. If you have credit cards, leave them at home. If you don’t have them with you, you are less likely to spend money that you don’t have. Only put the credit card in your purse or wallet when you know that you will need it for a specific purpose.

Gifts. If you are a generous gift giver but your finances are out of control, this may be an area you need to rein in. Set yourself a budget for birthday and holiday gifts. Let your family know that they shouldn’t expect the same extravagance in gifts that they have received before. They’ll understand and you’ll find your bills much easier to pay.

Decrease your dining expenses. You don’t necessarily need to quit going out to dinner entirely, but you can begin to cut back. Start bringing your own lunch to work, instead of going out for lunch every day. Choose your dining establishments for their dollar value and not just their ambiance. Look for the specials and coupons in your local paper for area restaurants.

These are just four easy tips to begin reining in your spending before it gets totally out of hand. Every little bit that you can trim off, is money in your pocket.

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Spring is Here … Time for a Financial Tune-up

The warm weather is finally here. Your thoughts turn to spring cleaning and outdoor living. So have you given any thought to tidying up your finances along with your patio?


Here are a few ideas for putting a spring in your finances:


– Double Up on Payments- If you’re like a lot of people, the holiday season has you off to an already sluggish start financially. Why not consider using that tax return to make an extra car or house payment? It’s an ideal opportunity to give yourself some breathing room early on in your fiscal year.


– Shop for Deals – Take a look at what you’re paying each month for phone/internet/TV services, insurance, etc. Contact providers about getting a better deal. Are you watching all of those channels in your cable package? Have you used all of those features/minutes in your wireless plan? Check for better rates on home and car insurance.


– Cash in on Spring Cleaning – You’ve probably got money laying around the house that you didn’t even know about. Books, clothing, tools, and assorted goods are just taking up space. Instead of paying to store it all, make some extra room in your garage and your budget with a yard sale.


– Check Your Credit Score – Make sure all of your accounts are up to date with all three major reporting agencies, and look for any erroneous entries.


An honest assessment of your finances along with a little creativity can go a long way toward a fresh financial start this spring.

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How to politely say “No Thank You”

Are you finding yourself on the right track of saving money?  Do you find that it is sometimes derailed by the good intentions of family and friends with their invitations for dining out, at home selling parties and fundraising events?

Here is an article that we found online that provides 7 Ways to Politely Say No.
1.      That won’t work for me but I could do this instead.
2.      I’m on a strict budget right now.
3.      Sorry, I can’t make it to that event.
4.      It’s tough finding people to pay for these things, isn’t it?
5.      I already ate but I could come just to hang out with you.
6.      Why do you want me to spend on this item?
7.      I would prefer not to.

Click here to read the article in its entirety – 7 Ways to Say No by Kathryn Vercillo.

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Canadians Act on their 2011 Resolutions Early

TD Canada Trust has just released the results of their Holiday Survey.

Here is a glimpse of the resolutions Canadians are doing today.

  • Spend less and avoid buying things I don’t need (53%)
  • Look for better deals (38%)
  • Build up savings to cover at least two months of living expenses (30%)
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Debt Management Tips

The best debt management tip is to not have debt at all, but to be realistic, that is never the case. Whether it’s your mortgage, credit card bills, and monthly expenses, it is hard to avoid debt. So what is important? Here are a few debt management tips to consider.

1.     See where your money is going and how much is coming in.

2.     Be aware of monthly expenses. Keeping track of credit card purchases, utility bills, your mortgage and so on.

3.     Pay off major credit card debit first like bills with appliances, home improvement renovations, and furniture. Before you sign up for another credit card, it is important to see what your options are before you borrow and read the fine print.

4.     Be sure to have a plan. Plan out how much money will go to each expense and payment.

Debt may be hard to avoid, but it can be easy to manage.