- In 2011, the Vanier Institute of the Family released data claiming the debt-to-income ratio is a record 150% noted at yourmoney.ca.
- You don’t have a budget- If you are wondering why you can’t get that new toy or why you can’t sleep at night it’s because you don’t have a budget. Designing a family or personal budget will keep your spending and saving on track.
- You don’t save your receipts– It’s so important to keep all your receipts so you enter this data into your budget binder spreadsheet. If you lose a receipt it’s difficult to track the money you spent.
- You don’t tweak the budget when needed– On a regular basis I recommend you go over your budget to see if there are areas that need improving. An example would be your Phone Bill is increasing by $4.00 a month. You need to make these adjustments in the budget for it to balance.
- You don’t use coupons– I believe every household should use coupons. When I see coupons I see $$$$$ and who just walks by $$$ and says bleh, who cares. Even wealthy people use coupons, just look at the Kardashians.
- You don’t Haggle; It’s so important to haggle with your utility companies, credit card companies etc. When it’s time to renew ask for discounts and promotions. Call credit card companies and ask them for a lower interest rate. Never say never unless you try. Save yourself a buck or 10.
- You’re not organized- It’s imperative to keep all the information you gather in a labelled file folder for easy access. The neater you are the likelihood you will continue working hard on your budget. K.I.S.S– Keep It Simple Stupid!
- You use your Gross Earnings – The biggest mistake and I’m sure many will agree is designing your budget using your gross income.
- For example, would you try to buy an item for $100 cash when you really have $80 in your pocket? Probably not because you’d look like a fool at the cash register. Your take home pay from your employer is your NET earnings. You want to use this number when plugging numbers into your Canadian Budget Binder Sheet.
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