We all go through hard times. If you’re currently experiencing financial troubles it’s important to remember that you’re not alone. The trick is to find an effective solution to your current issue and to develop good spending habits (and ultimately, get out of bad ones forever).
The first step is to recognize that you need help. Consult a non-profit credit counselling agency for debt consolidation counselling in Toronto so that you can assess your situation with an expert. The right non-profit agency will offer an initial free consultation and will help you identify critical debt warning signs, such as consistent difficulty paying bills, persistent phone calls from debt collectors, and if you’ve been arguing more than usual with your partner about money.
Go with an organization that has been accredited by Credit Counselling Canada, has been around for a long time, and has certified professional Credit Counsellors, so you know you’ll receive the most up-to-date, helpful, and sincere advice.
When you take that courageous first step and contact a professional Credit Counsellor, it’s likely that they’ll ask you about budgeting. Before your appointment, it’s helpful to have an idea of your monthly expenses. Consider how you could craft a working budget within your means.
It’s a daunting task, but these tips will help you to look at one within a realistic and attainable framework.
Create Realistic Goals
Ask yourself a couple of questions. Where do you see your finances in five years, one year, or six months? How much are you able to realistically set aside in savings per month? Come up with a few answers that make sense to how much you earn.
Identify Income and Expenses
Track what you’re spending! Start a simple spreadsheet with everything that you spend money on during the day. Even things as little as a cup of coffee — record them because those little items add up. See if you’re putting more out than what’s coming in. It might be an eye-opening experience.
Ask Yourself: Do I Need This?
Before you spend money on anything, ask yourself if it’s truly something that you need in your life. We’re all entitled to treat ourselves here and there, but when your goal is to get out of debt, for the most part, it’s really important to limit unnecessary spending.
Design the Budget
There is a little more thought involved with this step. You’ll need to ensure that you’re not spending more than what’s coming in. To do this properly, you’ll have to speak to your certified Credit Counsellor to obtain professional financial coaching. In the meantime, you can create an estimated budget of how much your monthly bills, rent or mortgage, and grocery bills are.
Put the Plan into Action and Plan Ahead
Now it’s time to “put your money where your mouth is,” so to speak. Once the budget is completed, print it out and put it up somewhere in your house so that it’s visible. Really try to stick with it, especially your daily spending goals, and see how you can cut back now and into the near future.
Creating a budget is the first step to getting out of debt for good. The trick is to stick with the plan. Consult your Credit Counsellor today for more information!