If you are having money problems, the logical starting point is to try to work them out yourself, with personal budgeting.
Unlike the other four strategies in our 5 strategy plan for dealing with your money problems (see the list on the left), the “Work it Out Yourself with Personal Budgeting” strategy does not involve outside help, so you have control over the process.
Although this strategy involves more than one step, as you will see Household budgeting is the key, the most important element in the approach.
To deal with your problems yourself, you need to do the following:
- Set your financial goals.
- Do a “Debt Assessment“: what have you got, and what do you owe?
- Create a proper budget. Our Household Budgeting page can help you complete this task.
- Use your budget and the information we provided in the Tips on Budgeting section to determine if you can increase your income or reduce your expenses each month.
- Pay yourself first.
- Cushion yourself.
In simple terms, dealing with your money problems yourself means cutting your expenses, or increasing your income, so that you can use the extra cash each month to pay off your debts.
But what if household budgeting doesn’t work?
What if you can’t work it out yourself? You still have debt solutions including:
- debt consolidation;
- credit counselling;
- consumer proposals; and
If you need help working out a debt repayment plan, contact an advisor today.