Budgets, Debt Management and Financial Planning for Women

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  • Do We Lead an Extravagant Lifestyle?
  • Budgeting for UK 2015 – The Real Numbers Are In!
  • Our 5 Top Budget Busters
  • What Will Our Wonderful Trip Cost?
  • What Would You Do If You Won The Lottery?
  • Advice From Exceptional People
  • What Happens If Mortgage Rates Go Up?
  • An Extra $120 Per Month? I’ll Take It!
  • Money Stress – What to Do When You Lose Your Job
  • Wardrobe Budget Blues
  • Back to School Budget Series – Part 3: 4, 5 & 6

    How do you budget for the school year? What do things cost? Some expenses may be familiar and others might be totally new. The main categories are:

    • Living (Housing & Food)
    • Tuition & Books
    • Transportation
    • Entertainment
    • Other

    Within each of these categories is a list of expenses many of which we all pay, some of which are unique to you. The key is to include all of them in your budget. If you’re not sure how much to include, do a little research to ensure your estimate is as realistic as possible. Read more »

    Back to School Budget Series – Part 2: 123’s

    Not everyone is ‘good’ at math but all of us should be able to do our 1,2,3’s. The post secondary school year or a trade, technical or diploma program face similar challenges in that the money flows in and outs in an abnormal pattern. This makes it difficult to budget. The traditional monthly budget doesn’t necessarily work. Here’s an alternative:

    1. Calculate the money in for the ‘school year’ including any savings, loans or part/full time work.
    2. Calculate any large payments such as tuition, residence, books or fees.
    3. Calculate monthly living expenses including any seasonal travel costs such as flights or car insurance.
    4. Does the money in cover the expenses? Read more »

    Back to School Budget Series – Part 1

    To me, the Labour Day weekend will always signal the wrap up of summer, the start of a new school year, the IPE and Armstrong Rodeo. Major events! This week our 5 year old began her school career…Kindergarten. Gradual entry (2 weeks no less before the first full day) is very, very gradual but it got me thinking about whether or not we need a Back to School Budget. Read more »

    How to Make Your Debt Disappear

    September will forever mean back to school but this year September means the start of school for our 5 year old. Entry into Kindergarten is very, very exciting.

    Despite the challenges of transitioning from full time child care to the school year calendar and a new before/after school care, the difference between the 2 monthly payments is substantial. This will mean more money in our bank account. A healthy dollop!

    Our mortgage is by far our largest debt and the payoff date is so far in the future it is depressing to think about. That being said, by increasing our monthly payment by $600 per month, we will pay off the mortgage approximately 4 years sooner. The extra $600 goes directly against the principle and by repaying the mortgage sooner, we will pay $65,000 less over the life of the mortgage.

    Most loans and mortgage payments can be increased and set at a higher amount, this is a great way (and simple too) to make your debt disappear.

    Add a Plan to Your Budget

    If you finished the ‘Building a Budget in 3 Simple Steps’, you’re ready to take it to the next level! A budget is the best place to start but don’t leave your plan behind. Adding a plan to your budget is straightforward.Planning is the fun part because most of us know what we want and when we’d like to have it.

    Assuming that your budget includes your needs, a financial plan adds a layer of sophistication to your day to day budget and is how you will be sure to meet your longer term goals. Here are the basic steps:

    1. Write down your goals, what they will cost and when you’d like to realize them (a car, debt repayment, first home purchase).
    2. Prioritize them.
    3. Break them down further into monthly amounts – for example if you are saving $2,400 for a trip and want to go in 1 year, $2,400/12 is $200 per month.
    4. Determine which goals you can afford to include in your budget now and set up auto transfers to a separate account.
    5. Decide how and when you will incorporate the goals you can’t put in your budget right now, so that they will not get forgotten.

    Two more important points:

    1. Include any other appropriate household members in the discussion and agree to the plan.
    2. Monitor progress on a bimonthly or quarterly basis and communicate often with your ‘team’.

    Build a Budget in 3 Simple Steps – Step #3

    Finally, Step #3.

    • Use your budget

    A budget is only valuable if you use it. It is a guideline to ensure that your monthly income covers your monthly expenses. The simplest way to use your budget is to monitor your actual income and expenses against your planned/budgeted income and expenses. At the beginning, it may be worthwhile to do this monthly to make sure your budget is reasonable however as you find your groove, every 3, 4 or 6 months may be okay.

    You may decide to tweak and adjust your budget or you may have to make changes out of necessity. It is always easier to adjust your expenses as opposed to increasing monthly income so keeping your fixed monthly expenses low allows you more flexibility. Ideally it also includes amounts set aside for your goals such as savings (for big purchases, retirement etc.) and debt repayment (repaying debts faster than required).

    A budget is a useful tool. Keep it simple and you’ll find it’s easy to use.

    Build a Budget in 3 Simple Steps – Step #2

    Step #2 entails a little bit of math. Now that you’ve gathered and reviewed the information, it’s time to do something with it.

    • Your budget will have 2 sections. One for income and one listing expenses (It’s generally easiest to work with monthly numbers). Make sure that all monthly expenses are included. Subtract the expenses from the income. Is the number negative or positive?

    The objective is to have a positive number once expenses are subtracted from income – this means that your budget is balanced. If the number is negative you have 2 choices a) Increase income or b) Decrease expenses. A combination of increasing income and reducing expenses may be the answer.

    Now you have a budget. The next post will cover Step # 3.

    Build a Budget in 3 Simple Steps – Step#1

    Does everyone dread having a budget? Most of us do. Creating and managing a personalized budget can be done in 3 steps.

    The first step is probably the most difficult and takes the most time but it is the foundation of a solid budget.

    • Gather your financial information including pay stubs, tax returns, bills, bank account statements and credit card bills.

    What to do with all the numbers? Organize the information into income and expenses and review it. Note the recurring main expense categories (rent, food, gas/transportation, utility bills, clothing, gifts and whatever else) and assess the average monthly amount you spend on each item.

    The next post will cover Step #2.

    Keep Food Costs On Budget!

    A recent trip to the Okanagan brought back memories and satisfied the taste buds. Memories of trips to the garden for vegetables or fruit for the dinner table. Many items could be plucked, washed and eaten while a few like peas and corn took a tiny bit more effort.

    I have very clear recollection of many evenings spent shelling peas or cramming cucumbers into pickle jars. Effort put in ‘during the season’ meant readily available food during the winter. The cost for this food foraging is very low as long as you have access to the soil and are prepared to put in the effort.

    An alternative is to buy these items in bulk in season, put in a little work and enjoy the rewards during the fall and winter. Peas (not yet shelled) were bought for $2 per pound and cherries for $1.49 per pound. Corn is abundant in the lower mainland too! A little effort as well as time and gas to get to the farm are required!

    In both cases, you know where your food comes from and you are able to handle it when it is freshest. Bon Appetit!

    Smart Shopping on a Budget

    It’s common sense that you pay extra for convenience but sometimes buying quality doesn’t cost more. A few shopping experiences over the last week has given rise to some gems.

    Here are some smart shopping tips:

    • High-end salon promotion: Buy $100 of products (I bought bulk shampoo & conditioner – lasts the year) and receive a $50 gift card for services (= next hair cut).
    • Buying at your local butcher: Excellent quality and half the price of the larger grocery store.
    • Farmer’s market or farms: It’s fruit season and some local farms sell in bulk. Blueberries freeze easily and may cost less than 1/3 bought in season.
    • Season end clearances: Especially kids clothes! Clothing for next summer can be purchased at deep discount. Just don’t forget you bought it!

    Here’s to smart shopping.




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