We've got all the tips and tricks to help you become a budgeting expert.
Budgeting can be tough, especially if it's something you're new to. We're here to help!
By implementing a few easy techniques (and making a few small sacrifices), you'll find that your financial goals are not that far out of reach. We won't lie to you...budgeting isn't the most thrilling of topics. But that's why acronyms were invented!
B - Beware of overspending
Before the budgeting process can begin, you may need to take a good, hard look at your current spending habits. Thinking about how you can cut down on unnecessary spending (like online shopping, your morning coffee run, or expensive lunch outings), understanding the root of the problem, and vowing to make a change is an important first step.
U - Understand the basics
If you're a beginner at budgeting, the 50/30/20 method is a good place to start out:
- 50% of your after-tax income should be spent on basic needs (food, housing, transportation, and bills)
- 30% should be spent on your 'wants' (clothing, eating out, entertainment)
- 20% should be transferred into savings (to go towards a larger expense such as a vehicle or house purchase, travel, or retirement)
TIP: Consider opening a tax-free savings account to maximize your savings!
D - Do it together
For better or for worse, right? If you're in a committed relationship, budgeting should be a two-way street, and you both need to be on the same page about your money and spending. Even if you're single, it isn't a bad idea to have someone you trust, like a family member or friend, help hold you accountable in your spending.
G - Get help
Asking for help isn't a sign of weakness, but a sign of strength! A considerable part of budgeting is saving, and that's right up our alley! Whether you take advantage of a TFSA, our current term specials, or our wealth management team, help is just a phone call (or text!) away. Get in touch today.
E - Excel is your friend
A quick internet search on budgeting will lead you to a multitude of excel sheet templates. For the most part, these templates are user friendly and will help you visually see your income, spending habits, and savings all in one convenient place.
T - Timing is key
Falling behind on creating a monthly budget will only lead to inconsistencies in your spending. It's important to create your budget (and completely understand it) BEFORE the month ends. This is an extremely important habit to get into and one we can't stress enough.
Budgeting is important, but can be intimidating to people who are new to it. If you want to start budgeting but don't know where to start, do not hesitate to reach out to your local branch for assistance in getting started!