There are many causes of money problems, including job loss, marriage break up, or medical problems. These are the types of events that happen unexpectedly or that you cannot control. But sometimes money problems are caused by simply spending too much money. Regardless of the cause, there is one common starting point for dealing with your money problems: making a budget.
Budgeting is perhaps the most boring word in the English language, but to get started solving your money problems, you need a plan, and a plan starts with a budget.
A budget is simply a list of what comes in every month, and what goes out. You can read more about it, and even download a budget template, at our page about household budgeting. To make a budget, write down everything you spend for the next two weeks (a month is even better), and then add it up to see where you spend your money. Then, see if there are any areas where you can cut your expenses, or increase your income, to free up enough cash to repay your debts.
By making a budget you may be able to deal with your money problems on your own. If not, it’s time to consider other debt relief options, such as credit counselling, a consumer proposal for Canadians.