Debt | The Saturday Weekly Review

How Poor Money Management Can Affect Your Lifestyle : The Saturday Weekend Review #291

money management skills

POOR MONEY MANAGEMENT CAN LEAD TO ALL KINDS OF FINANCIAL PROBLEMS

Poor money management doesn’t just happen overnight especially the type that affects financial security.

Not only do you need to be aware of the money you are spending today but how it will affect you when you retire.

If you haven’t had a glimpse into the life of a retired senior or visited long-term living you should make your rounds.

I bet your opinion of how you earn, spend and save your money will change dramatically. 

Please don’t tell me you hope you will die before you retire or that you’ll never live to a certain age or get ill.

This mindset is the silliest I’ve ever heard of and if you have no family to help look after you then you better listen up.

Have you ever wondered why you can’t get ahead with your money and what got you there in the first place?

I’ve learned over the years as a financial expert in the areas of frugal living, budgets and debt that consumers don’t just stumble into financial trouble.

How Can I Learn To Manage My Money Better?

Dear Mr CBB,

Over the past two years since graduating University and scoring a great job in Toronto, I’ve been spending my money wildly.

I know that is part of the problem but I struggle to understand when I get to live the life I want to live.

Going to University for 5 years was tough for me and although I had it paid for by my parents I still struggle.

I honestly don’t know how some people can do it having to pay back school loans.

My rent is $2000 a month and I live with my fiance who also has a good job and pays $2000.

In total, our rent is $4000 a month plus one parking space for $500 a month as we get one free with the rental.

Our monthly utility bills and other costs range in the $1000 mark along with groceries $400.

Eating out costs are off the charts with $1000 a month each.

Let’s not even talk about clothing as we both love fashion and shopping.

Together we have 2 parking spaces one for each of our cars and full gym, indoor pool, laundry facilities and recreation room on the main level of our building.

We do not budget but estimate what we spend based on our bank account expenses but would like to start.

Many of our friends think we are rich and we are if you don’t count having little to no savings and debt.

Both of us struggle with poor money management skills and aren’t sure where to begin.

The idea is that we eventually move out of this place and buy a house together outside of Toronto.

Both of us can work from home although on occasion we need to go into our offices to meet with staff.

It’s clear we have a spending problem that we need to address and we have the income to work with.

What tips could you give to us so we can start focusing on managing money instead of our social life?

Thanks,

Andy and Craig

Toronto, Ontario

Ask For Help When You Struggle Financially

Thanks for your excellent email, Andy and Craig.

I will do my best to help you both but if you want to email me for more information you can certainly do that.

Money Management Is An Umbrella Term

What does money management mean?

This is a question that everyone should learn the answer to when they are in high school since it will affect us for our entire lives.

Money management is a tiered system that occurs after you receive a paycheck that involves:

  • Saving
  • Budgeting
  • Investing
  • Spending

Causes For Poor Money Management

Chances are there are more than just one reason as to why your poor money management skills have stumbled off track.

The good news is that you don’t have to continue living for your next paycheque as long as you make important changes to the way you spend money.

I know it sounds easy enough to say as rent and costs of owning a home are on the rise however this is where you need to kick it into high gear.

No more waiting around for someone to rescue you from the turmoil because of poor money management.

Anyone that I’ve ever assisted with their budget has come out ahead because they wanted to put debt behind them.

There are sacrifices you have to make to save money and one of them is to stop spending it.

Kraft Dinner Is Just Too Expensive

While shopping at Costco I overheard 2 university girls that live together judging by their conversation say how expensive it was to buy Kraft Dinner but how good it tasted.

They put a case in their shopping cart and off they went.

When we get to the point that Kraft Dinner becomes a high-cost grocery item we know we are in trouble.

Something has to be done or realized so that we can prepare ourselves for what’s next to come.

What if those University girls don’t find well-paying jobs after they graduate?

They may be eating Kraft Dinner often or have to scrounge around for even cheaper foods to prepare meals with.

Will they be healthy? It depends on what they buy but often convenience wins the award.

Should those university girls purchase the Kraft Dinner?

Well, that’s up to them as I don’t know their financial situation.

What I can advise is that if you find that a product is too expensive for your budget then step back.

Analyze the costs of you what you need to buy whether it be new clothes, furniture or even groceries.

Figure out what you need the most and if it costs more than you had planned then skim on other areas.

I do caution everyone that you get what you pay for but with food, it’s easier to compromise.

For example, if you want to buy a 100% leather couch but can only afford a pleather couch or fake leather hold off until you can save up the cash.

Going Without To Get Ahead

There’s no reason you have to rush out and buy something that you can live without.

Trust me, we’ve had no couch for two years now and we’ve gotten away with it.

I know you might laugh that we don’t have a couch but it’s not because we haven’t saved up the money it’s for renovation reasons.

It took us some time to build our emergency savings account after paying off our mortgage and then our reno fund.

As homeowners, we’ve come to understand that if you want or need something done around the house you have to pay to do it right.

That means getting high-quality projects and the right tradespeople in to do the job.

This is an area where you don’t want to skimp because once it falls apart then you have to do it all over again.

It’s like buying an expensive pair of boots because they are made of real leather instead of the cheap ones.

You’ll find the leather boots if well taken care of can last for years where the cheap one’s maybe a year.

Poor Money Management Examples

Everyone who is in debt or can’t make it to the end of the month without going broke knows they are in a financial pickle.

Not all of these people are making poor money decisions either.

The struggle to pay all of the bills while working a full-time job in a dual-income family or a single earner can be overwhelming.

Depending on what city you live in the cost of living can far outweigh what your net income is.

There are reasons why people choose to rent a room instead of an apartment or renting an apartment instead of buying a house.

However, some people simply make poor money management decisions that force them to fall flat on their face.

Examples of poor money management may include:

  • Spending on stuff you don’t need
  • Buying to impress others
  • Borrowing money
  • Not paying your bills in full
  • Overdraft, Interest and Late Fees
  • Taking out credit that you can’t afford
  • Not budgeting
  • Failing to ask for help
  • Low Credit Score

How To Handle Poor Money Management

Just like I say to my son anytime he can’t figure out something on his own, ask for help.

There are so many resources online and in the community for people who are struggling with poor money management.

If you want to start budgeting or finding out where your weak areas are with your finances find free local resources.

Talk to your bank or financial advisor if you have one and see if they can offer you help.

My advice is to do the opposite of what is causing your poor money management skills in the first place.

Let’s a have a look at them once again and perhaps see the positive side to each situation.

Spending on stuff you don’t need

Start with a spending plan and every time you go out to ensure that you bring that plan with you.

This can be anything from a grocery list to a shopping list for other products you need.

Buying To Impress Others

Just stop this.

I know of a situation where a family member spent more on a gift for an aunt than she did for her sister.

It wasn’t because she was being cheap with her sister it was because she wanted to impress the rich side of the family.

Stop Shopping and Eating Out

You knew this was coming.

If clothes and eating out are your big expenses then begin to cook more meals at home and think thrift and vintage.

There are so many secondhand shops around Canada that I’m sure you can look just as fashion-minded by dressing for success on a budget.

Borrowing Money

If you find you are borrowing money to get ahead you know you are going through financial difficulty.

Try your hardest to not ask your family for help unless you have a payment plan set up with them.

It’s hard when you burn bridges with family and friends when you can’t pay them back.

Not Paying Bills In Full

Only paying the minimum payment on credit cards is a huge no-no in the financial world.

If you use a credit card to charge items you pay that in full when the time comes due.

Could you imagine the amount of money you are paying in interest especially when you went to all that trouble to find a bargain?

What a waste that is of your hard-earned money

Overdraft, Interest and Late Fees

Having overdraft protection is great but not fun when you are charged $5.00 every time you use it.

Paying interest just plain sucks.

Late fees are the worst.

All of the above are huge money wasters so avoid them at all costs.

This begins with a financial organization and a plan to pay your bills in full.

Taking out credit that you can’t afford

Stop applying for credit cards and loans if you cannot afford to live in the income you receive.

The last thing you need to do is find yourself in a bankruptcy situation.

I know finding yourself on the streets homeless is a worst-case scenario but eventually, your debt will catch up with you and you’ll end up there eventually.

Starting to do something about it now is the best recourse you’ll have even if you have to give up some of life’s luxuries.

Not Budgeting

This is a huge mistake in my books and is a must for everyone.

Please don’t tell me that budgets don’t work because I know they do.

You can and should be using a budget whether you are paying your bills on time or not.

Without a budget, you won’t know where your money is going from the corner store to the gas station.

You can start by downloading our free budget spreadsheet or paper budget.

Low Credit Score

Having a low credit score can impact your potential employment opportunities, lending opportunities when you want to buy a home or even a car.

Increasing your credit score starts by working on all of the above and little by little when you impress the creditors you’ve already upset you’ll see your score increase.

Focus On YOU and Forget Everyone Else

I’ve always been a firm believer in networking and engaging in conversation to boost your career opportunities.

Many people myself included have moved up the career ladder due to volunteering and networking.

What I don’t dive into is spending money to impress these people just to get ahead.

Whether it be your friends you are going out with for dinner and drinks the money all adds up.

How about you cook the meal at your house and invite them over for dinner?

Perhaps a pot-luck type meal for your co-workers might encourage others to spend less too.

Whatever you choose to do to change your poor money management ways make sure it fits your new lifestyle and goals.

Discussion: What other tips do you have for these two men looking to improve the way they manage their money so they can buy a home together?

Drop your comments below and I’ll be sure to answer you back.

Mr CBB

CBB Posts You May Have Missed

easy granola recipe

Below is a recap of the blog posts I’ve published over the past two weeks so you can catch up on your reading.

Mr CBB’s Motivational Corner

motivational quote

I’ve been in many situations where I’ve felt people judge me since I don’t have a big house, fancy expensive car or travel often enough.

Trust me when I say I do not have anything to do with these people and often wonder why anyone would care so much.

“You don’t go on holidays?” um, not every year but we do small road trips.  “But that’s not a holiday” well, for us it is.

“Why would you buy a small house when you could have purchased a bigger home for less?”

Because that’s all we wanted to spend even though we could have gotten far more from the bank for a mortgage.

“Look at that homeless guy on the streets he’s such a bum, “get a job, you lazy idiot”.

“She’s strung out on Fentanyl for sure. I don’t know why these people can’t get it together. They knew before they took the drugs what it would do to them.”

“Why is she using the handicapped space, she doesn’t look sick?”

“This person is taking forever to pay for the groceries, ugh.”

This was told right to my face by the person behind me in the grocery line.

Perhaps this person has an invisible disability or mental illness you can’t see. One minute won’t make or break your day.

The above are quotes I wrote in my daytimer (Yes, I’m old-school no phone) after I heard them so I can share them with you.

I have plenty more and these are not always from people I’m with.

I’m nosey or perhaps have good hearing and listen to people when they talk, especially when I’m alone.

Frugal Recipe Find

chicken dumpling casserole

I woke up this morning and I was freezing and could hardly keep my eyes open until I had a big cup of black coffee.

Then I started making my rounds through Pinterest and like most of us my stomach started growling.

I was hungry and feeling cold as the weather in Ontario keeps dipping into freezing temperatures.

Ever since I started CBB I’ve been a huge fan of casseroles. Many of my Facebook readers now I will joke about making a Casa-Roll-Eh.

Casseroles are delicious and easy one meal deals for the oven that creates less mess and hassle for the busy home cook.

Brandy over at The Country Cook shares one of her favourite comfort casseroles Chicken and Dumplings that caught my attention.

My mum back home in the UK often would make chicken stew with fresh homemade dumplings plunked on the top.

Memories of food always last a lifetime especially if they are made by someone you love.

This chicken and dumplings casserole can easily be made keto too which is perfect for Mrs CBB and me.

For the dumplings simply make almond flour dumplings in place of regular dumplings.

I’d eliminate the cream of chicken soup and just add heavy cream, cream cheese and other spices.

  • Basil
  • Rosemary
  • Thyme
  • Bay leaf
  • Oregano

I’ll change up this recipe for next Sunday’s frugal recipe blog post for all of you and make it Keto.

So, watch out for that recipe.

Home and Blog Update

Blog Update

Hey everyone!

Boy did we have some hiccups on the blog last week as our host was down for 52 minutes due to a system update problem.

I was not upset at all as they jumped on the situation right away for CBB and had me up and running fast.

Honestly, I can’t complain because in over 4 years I’ve been down for a minute at a time.

Bis Scoots has been the best hosting company for blogging and I will always support them.

Other than that I also had my front page of the blog taken down by my designer as I had issues with that too.

It has since been replaced and she has updated the cover so new subscribers can easily access the blog.

We will be updating The Ultimate Grocery Guide shortly to make it easier to read as well the Free Download Tools.

If you haven’t subscribed to CBB yet please head on over to the home page and subscribe.

That’s all the juicy info on the blog from the past two weeks.

Chat to you all soon.

Mr.CBB

Home Update

I’ve finally finished clearing up the outdoors for winter this past week and brought my truck into Krown to get it sprayed.

I don’t put winter tires on my truck just yet but may look into it in the future.

I did get some pretty decent tires on the truck when I bought that work well in the snow.

A huge shoutout to myself for finishing the bathroom! I’d show you a photo but only if really want to see it.

Let me know in the comments below.

I was donating for a poppy the other day to support Remembrance Day and a lady told me to put an earring backing on the pin.

This prevents the poppy from falling off like it almost always does.

I thought it was a brilliant idea that I should share with all of you.

After Remembrance Day the Christmas season begins at the CBB house and that’s a whole other big job for me.

Thanks for checking in this week CBB readers!

P.S- I got new glasses. 🙂 I’ve never worn glasses before.

Mr.CBB

Saturday Search Term Giggles

Every week I get tens of thousands of people who visit Canadian Budget Binder because they searched online and found my blog.

Yes, I can see your search terms and sometimes they are funny.

  • My wife spends our money even if I don’t agree– Get a new wife. Joking, but seriously you need to talk.
  • I stole $20 of meat from Safeway– At least you’re admitting it.
  • What does weekend mean in a relationship– It means WE or spending time together. Honestly, it means whatever you both want it to mean.
  • How to retire on a shoestring – Haha, I don’t know about you but I’d rather not retire on a shoestring.
  • What’s the best excuse for you not to do jury duty in Canada?– You’re dead.

If you see the acronym (SIC) next to a word that means I’ve copied the text exactly as it was typed in Google and it has spelling errors

That’s all for this week my friends, see you again in 2 weeks for the next Saturday Weekend Review!

Mr.CBB

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