Do these 2 topics make you uncomfortable? If the answer is yes, do you typically procrastinate? Why do the alarm bells go off in February? If all the media attention hasn’t brought it to your attention, the following might: You will receive most of your income tax slips in February The deadline to contribute to […]

How do you define living on a tight budget? I think most of us would agree that the phrase implies that it is a challenge to make ends meet each month. Delving a little further, I think it means having just enough or not quite enough money coming in to cover the basics. Necessities such […]

Step 11 The last one! You have a plan and you’ve put the wheels in motion. Don’t forget to set a reminder for yourself to review your progress. This will take a small amount of your time but I think it’s worthwhile. Check the balances of your assets and debts and compare them to what […]

Step 10 What’s a plan without action? Convert your plan into action so that you achieve your goals. For example, if your objective is to repay your student loan more quickly then decide how much you can afford to pay extra each month and either: a) Increase the monthly payment with the lender to the […]

Step 9 Develop your budget! Refer back to your net income and item by item subtract your expenses beginning with your needs, followed by your goals and discretionary spending making sure that your expenses and goal savings do not add up to more than your income. Use your average expenses from past experience but whatever […]

Step 8 Take another look at your goals as well as the cost and timeline associated with each one. For example, if you’d like to replace your car in 2 years and know that you will be able to sell your current vehicle for $10,000 and expect the new one to cost $25,000 (including taxes […]

Step 7 The difference between your assets and debts is called net worth. This is an easy number to calculate and a good one to know. If your net worth is positive then it means that you have financial resources and resources mean options. If your net worth is negative (more debts than assets) then […]

Step 6 Now’s a good time to take a look at assets, debts and liabilities. List your assets including things like cars, retirement savings (RSP’s) and savings, estimating the value that someone else would pay you for it. What could you sell it for? List any money you owe and what payments you must make […]

Step 5 This may take slightly longer than 5 minutes but hopefully not too much longer. Write down your expenses starting with ‘must pay’ expenses or needs such as housing, food, utilities, transportation. Follow this with your discretionary expenses and note down what you typically spend on items such as entertainment or clothing. Some expenses […]

Step 4 – Money In January 8th and you’re already at Step 4! You’ll have a plan before you know it. Regular (or average) monthly net income (net = after tax & deductions) Other resources or irregular income such as bonuses, tax refunds or extra income Put the regular income on the sheet under income […]