November is Financial Literacy Month in Canada.
Follow MoneyProblems.ca all this month as we talk about budgeting your way out of your money problems – no matter what they are.
Did you know?
- 50% of Canadians admit to worrying about money1,
- Canadians admit to a gap between what they wish they could save and what they actually save2,
- roughly 45% of Canadians do not have an emergency fund3,
- 35% of Canadians feel their debt levels are too high4,
- only 23% of those who had set a goal to reduce their debt felt that they were successful in meeting their goal.4
What this tells us is that Canadians want to reduce their debt, increase their savings and balance their budgets. But many are struggling to keep those goals. Sometimes the reasons are out of your control – job loss, income reduction, marital breakdown. All of these can increase your debt and derail your savings plan. But sometimes, easy access to credit and overspending may be the culprit.
Take Action – Set Yourself Up For Success
No matter what your money problems you can set yourself up for success. The best place to start is to develop, implement and maintain a budget that is focused on addressing your specific money troubles.
Before you do however, keep in mind these three fundamental principles:
- Be completely honest with yourself. If overspending is a problem, find out what motivates you to spend. Do you use shopping or going out on the town to deal with stress? Emotional spending is a significant reason many spend more than they can afford.
- Make a plan and stick with it. Do you forget to pay your bills on time. Even if you are only a day late, this will increase your interest costs, reducing the amount of money left over for savings or debt reduction. Budgeting is your guide to what you should be doing with your money.
- Be willing to make changes. The key to meeting your budget and achieving our financial goals is to make small lasting changes. If you always stop for a morning coffee and bagel on your way to work, you are likely to continue to do so because it’s routine. You don’t stop to think how much you could save by making even small lifestyle changes.
Free Budgeting E-book and Worksheets
To help you on your journey, MoneyProblems.ca has created a special free e-book in support of Financial Literacy Month called Budgeting Your Way Out Of Money Problems. In this guide, we take an in-depth look at the budgeting process. We’ve provided step by step instructions on how to define your money problem, review your spending and set a budget that will allow you to achieve your goals. Yes, you can control your spending, pay down debt and increase your savings for the future. You just need to take action.
Download our free budgeting e-book and accompanying excel budget template, then follow our blog posts, weekly polls and surveys all this month to learn more about budgeting for financial success.
1 – survey conducted by the Canadian Institute of Chartered Accountants
2 – survey conducted by Harris / Decima
3 – survey conducted by Harris Decima / Hoyes, Michalos & Associates
4 – survey conducted by Price Waterhouse Coopers