This is not a ‘favourite thing’ however most of us face these choices on a regular basis. They may involve large amounts of money (vehicle – new vs. used, buy vs. rent) or small amounts of money (daily coffee – buy vs. home brewed, vacation). Either way, making smart and informed decisions gets you what you want and keeps you out of money trouble.

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Just like a business, effectively managing your inventory at home can mean time and money. If you do it well, you will spend less money and have more time.

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It sounds like a simple question but many of us aren’t always certain what the relationship is between cash flow, assets, liabilities and net worth.

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CEO of the House you ask? Realizing I hold this title is a bit of a shock. It shouldn’t be….I’ve done the job since I moved out on my own. What’s made the difference is that I’ve got people to manage. Not staff but more people. 3 to be exact. We joke about the title and a friend mentioned their title for the role is CDO (Chief Domestic Officer) – as opposed to Chief Executive Officer. I prefer CEO because it is a job requiring a comprehensive skill set.

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This is a common question. In a nutshell, more frequent payments make less of an impact than making extra or larger payments … Here’s why:

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Maybe you’ve been paying the rent or your cable bill without wondering whether you’re paying the same, more or less than others? Perhaps you want to move out on your own and would like to know what it will cost.

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This may sound like an oxymoron but it is actually an art. Most of us have some idea of what things cost and what we are prepared for them. There is also the question of whether you are receiving good value for what you spend.

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Eating out is so much fun but we all know that it’s cheaper to eat at home….right? It depends how you shop. Food is yummy and it’s easy to splurge on some fantastic items. Preparation time is another factor and time is limited which makes prepared foods attractive.

Here are 10 tips to keep in mind when your fridge is empty and you’re going shopping.

1. Make a list. I try to set the menu for the week and make the list from that. I also keep a running list of things I need.
2. Choose a time when you’re not too tired or hungry.
3. Sign up for the grocery store customer card so that you’re eligible for the sale prices.
4. Take a quick look to see if items you use regularly are on sale – buy a couple.
5. Stick to your list (except for #4)!
6. Shop the outside edges of the store (most prepared foods and indulgence items are found on the interior shelving).
7. Choose some healthy, quick prep meals and put them in your pantry for when you’re too tired to shop or cook (tuna, canned beans, soup, rice, pasta).
8. Consider purchasing your fruit and vegetables at a Fruit & Veg store as opposed to a larger grocery store.
9. Consider buying drugstore and household items at a larger drugstore.
10. Use extra portions for lunches or put in them in the freezer for quick meal solutions.

Like many other things, grocery shopping and making meals is made easy and costs less with a little planning. Prep for multiple meals at one time, buy only what you need to minimize waste and make enough for leftovers…Happy foraging!

I spent a good part of Thanksgiving weekend tidying up and organizing a home. To give you an idea of the size of job there are 2 pieces of information. 1) 2/3 of the floor in the home was not visible and 2) No recycling or anything else had been removed for about 10 years. You may wonder what this has to do with personal money management. A lot!

There were many boxes filled with bits of paper. Many of the papers were important and many still in their envelopes. The owner of the home was having trouble finding things when he wanted them. Particularly, important papers. This was the source of increasing anxiety.

Are you organized? At the end of the day, the information wasn’t difficult to sort and it wasn’t difficult to set up a filing system. In order for it to work, it needed to be simple and have clear guidelines with respect to what to keep and where to put it. In a nutshell, here are the guidelines:

1. Sort all papers as soon as they are received, discarding unwanted items (shred those with personal information and recycle others).
2. Group categories such as Banking & Credit Cards, Investments, Insurance/Property Taxes, HealthCare and Income Tax.
3. Create a ‘current’ file for receipts (file them by month) and utility bills (discard/shred once the next month’s arrives).
4. Create a ‘current’ file for the year’s income tax information.
5. Decide what credit cards you will maintain and which you will close.
6. Decide what charitable organizations you will support and how much (annually) and tell the others what you decide.

It’s was an overwhelming job but by tackling it 1 box at a time, it was manageable. It was amazing to see over 10 boxes of paper be filed and organized into 4 boxes.

The bottom line is that the state of chaos was the source of much anxiety for the person. Unable to find things and feeling guilty that he wasn’t ‘on top of’ their papers was leaving the person feeling self-conscious and inadequate. It wasn’t hard work to change and hopefully it will give the person piece of mind that their financial documentation is in good order.

The other huge benefit was seeing a clear picture of the individual’s financial situation and capabilities. Because of the lack of organization, bills were lost and not paid and charitable organizations had been sending multiple requests for funding each year. Surprisingly the finances were quite simple in terms of number of credit cards, bank accounts and investments. Keeping it simple yet having the right system to serve the individual’s needs is the highest priority.

Although most of the work on a budget completed at the beginning, it’s important to use your budget on a regular basis! That doesn’t mean looking at it everyday but it does mean taking a little time to do the following:

1. Check your actual income & expenses to your budgeted income & expenses every 2 or 3 months.
2. Take note of any categories that are ‘over’ budget (you’ve spent more than you allocated).
3. Understand why it happened and ask yourself whether you can correct it. If not, then it’s a good idea to adjust your budget allocation to the realistic amount (this may mean making choices about what you spend in another area – your budget still has to balance).
4. Make sure your budget balances or will balance. This means that your income is greater than or equals your expenses. If your expenses are higher than your income, you will go into debt and have to repay it at some point.
5. Know what you will do with any pay raises or ‘found’ money. Have a plan.
6. Reward yourself for meeting your goals.

Now you have Budgeting Basics!