The Importance of Making a Budget

November is Financial Literacy Month, and the number one money management tip for everyone, is to have a budget! According to the Financial Consumer Agency of Canada, when people have a budget, 93 per cent actually stick to it. Those are pretty great odds, and imagine how much more money you’d have in your bank account if you weren’t spending it frivolously.

Debt levels continue to rise in Canada, so while times are tough for some, the stress for budgeting is even more important. Use this month as an excuse to get your money back on track.

A budget helps you see more clearly how much money you receive, and how much you spend and save. It helps you set spending limits and live within your means. It helps you find ways to get rid of your debts, reduce costs and have more money for things that are really important to you. [FCAC]

If you’re unsure how to start with a budget, here’s some basic tips for success:

1. Keep track of your money habits right now: how much income do you bring in? Where does your money go to (and be honest with yourself)?
2. Create a budget: there’s a great free budget worksheet online on the Government of Canada website.
3. Stick to your budget: it will be hard at first, but discipline yourself. You’re the only one who suffers if your budget fails.
4. Evaluate your budget: a great budget will mean that your income and expenses are leaving you with enough to achieve your financial goals, if something is way off, it’s time to reevaluate.

If you still need some help, here’s a step-by-step guide to budgeting (including a budget calculator) via the FCAC website.

If you have questions about budgeting for homeownership, please feel free to contact me!

Tags : budget calgary, budgeting, budgeting calgary, debt calgary, financial literacy, financial literacy month, money calgary, money management