Do I really need to make a budget for the holiday season?

Sometimes, it's because they don't know how to start or maybe we would rather spend our time with the kids or sitting by the tv rather than punching numbers into a calculator.

The key to motivating yourself to do anything is to look at the potential benefits of doing so. Making a budget really is one of the most important activities you could do and its usually something we all start to think of more around this time of the year.

A budget is basically a list of your income and your expenses. It is a way for you to ensure that you know where all of your money is going and to help you save enough to meet your financial goals. A budget is the foundation of any financial plan. Your plan could involve long term plans such as saving for your childs education or something more short term, such as how do I get through the holidays?

There are a number of good things that can come out of making your budget. First of all, if you involve your partner and family members, it will bring up important conversations about values, priorities and everyone will feel a sense of responsibility toward the family's finances. When you look over your budget, you will be able to determine whether you are spending more than you make. If this is the case, you need to figure out areas where you can cut-back in order to avoid getting into serious financial trouble. At this time of year, one way to avoid the temptation of going over your budget would be to make a determined effort to leave the credit cards at home when going on a shopping trip.

The people who I see in the Cambridge office are unable to service their debts because they do not have enough money left over after covering other expenses. I use their budget to determine whether they are a candidate for a consumer proposal or personal bankruptcy and which of these would be best to get them out of financial trouble.

It is sometimes the case that people simply lack the budgeting skills necessary to stay on top of their finances. When you file bankruptcy, you are required to take part in two credit counselling sessions where you will learn the necessary skills to fix your budget so that hopefully, you will not get into financial trouble again. If you have realized that you are spending more than you make and cannot service your debts, call me at 519-622-3773 or send me an e-mail. Together, we can look over your financial situation and find a way for you to get a fresh start free from debt.