Budgeting - Stick with it

• Are you being Specific? (are you considering ALL expenses, like saving for a vacation, gifts)
• Is it Measurable? (are you tracking your expenses)
• Is it Achievable? (do you enough money coming in to cover your expenses)
• Is it Realistic? (are your expenses taking you beyond your means)
• Is it Timely? (are you budgeting with a goal in mind - saving for a new car?)

No matter if you keep receipts, track expenses, use computer programs or spreadsheets to help you track expenses, remember to try and budget for rainy day expenses - a new muffler, vets bills. The easy thing is to remember the regular items such as rent, hydro, groceries, but we forget to budget for the $20 we might need to buy the brother or sister a birthday gift.

When thinking about your grocery budget, don't forget the extra trips to the corner store halfway through the week to top up with milk and bread... and don't forget the extra $5 you spend on a lottery ticket while you're there!

If you draw up a budget and there is simply more going out than there is coming in, you have to look into other options.

• Recognize The Danger Signals - You may have a debt problem, or are going to have one, if:
• you continually go over your spending limit or you use your credit cards as a necessity rather than a convenience;
• you are always borrowing money to make it from one payday to the next;
• your wages have been garnisheed to pay for outstanding debts;
• you pay only interest or service charges monthly and do not reduce your total debt over many months;
• creditors pressure you for payment, threaten to sue or repossess your car, furniture or television, or hire a collection agency to recover the money for them; or
• utility companies cut off service because your bills have gone unpaid.

Once you have started working on your personal budget planning, you will realize that there are only two ways to increase your cash flow each month.
Method #1: Increase your income Method #2: Reduce your expenses
There are many ways to increase your income; consider some of the following suggestions:
1. Work more overtime
2. Get a second job
3. Start a home-based business
4. Take in a boarder or room-mate
5. Try to find a better paying job
Remember to always consider the consequences when you try to increase your income. More overtime may mean less family time which, in the long-run, may not help you at all.
For most people, reducing expenses is a more immediate way to increase cash flow and improve their budgeting than increasing income. How can you do it? Start by looking at every item on your personal budget that you spend money on each month. Can any of those items be reduced?

Consumer proposal
Under the Bankruptcy and Insolvency Act you may make a proposal to your creditors to reduce the amount of your debts, extend the time you have to pay off the debt, or provide some combination of both.

Personal bankruptcy
If none of the above methods solves your debt problem, you may choose to consider filing personal bankruptcy. Filing bankruptcy should be a last alternative if you cannot meet your financial responsibilities through affordable payments over a specific period of time.

If having looked at your budget you feel like you need to discuss it further, please contact me by email or by phone at 519 622 3773 for a free consulation. I'll review your budget and options with you and see if a consumer proposal or personal bankruptcy would help you to be able to budget each month.