All About Budgets

8 Financial Tools To Get Ready For The New Year

 

financial Tools

Get Organized With These 7 Financial Tools Before The New Year

If your New Year’s resolve to conquer debt now is the time to get ready by collecting all of your financial tools for Jan 1.

To overcome and take control of your money and debts you need a budget but you’ll learn more about that below.

I know some of you might despise using a budget I hope I can change your mind like it changed our lives.

For those of you who budget in your heads, I urge you to forget that method of budgeting and get real with numbers and facts. 

There was a time when Mrs. CBB and I did the same thing with no budget and can look back and know that was a terrible mistake.

One weekend in December 2009 we asked each other what our New Years’ resolution would be.

I was shocked to hear that she wanted to understand more about our finances to pay off debt quickly and buy a home. 

Humble Budgeting Tools And Beginnings

basic budget spreadsheet

To get a start in Canada or you’re a permanent resident as I am you take what you can get even accommodations.

I was fortunate that Mrs. CBB already had a place to live and the landlord allowed me to stay for an extra $100 a month. 

At the time we were living in a basement dungeon with kids upstairs in their teens.

You can imagine the success we went through and missing items from our bedroom because there was no door just a shutter.

What I ended up doing was taking a trip to the restore and purchased a door and lock and installed it. 

We almost felt violated knowing the kids and our landlord could come in and look around without notice

Honestly, there was nothing to worry about because it’s not hard to keep a bedroom clean. 

This is where the budget idea started but it didn’t become a reality until we just moved out.

We had enough of the arguments upstairs and just got to the point we knew we needed out. 

House Hunting and Financial Tools To Help You

Quietly we started looking at houses using only one of our incomes to play it safe.

Our budget was between 200K to 275k and after house hunting, we finally found the home we are in now.

We paid $265k for our home which was an awesome deal in 2009 when house prices plummeted. 

Today our house would sell for over $700k just as it is which is why I’m renovating it to increase the value.

Moving To Canada Was Like learning to crawl again

I had to study the coins and bills in Canada because I didn’t even understand them. 

So, for all we went through moving me to Canada with my dog, learning about Canada, education, credits from my degree was overwhelming.

Eventually, I went to the local college and signed up for a program that I earned top marks in and a new career path. 

I started at $15 an hour and now earn almost 5 times that amount because I had confidence in my skills and I wanted a higher income.

With all of that going on we continued to create a basic budget on paper and kept it in a 3-ring binder.

I can tell you that was the start of our financial journey did not stay the same.

Finance Tools Have Evolved

We’ve evolved from a very basic budget to a spreadsheet that I created and couldn’t be happier.

I created two excel budget versions for my subscribers. 

However, I urge you to try the different types of options for budgeting to see what fits right in your life. 

You can also try many popular Budget Apps such as You Need A Budget (YMAB), Mint.com, and KOHO.

  1. A budget spreadsheet where the users can change things around
  2. The user must use the budget as is which most people do as it’s quite detailed. 

Then in 2012 Canadian Budget Binder was born and we’ve since learned so much about budgeting. 

This is why I urge anyone who uses a budget to not give up even if you have more debt than the income coming in. 

I wanted this post to be basic for newbies to budgeting so you could get your financial tools ready if you’re serious about budgeting. 

Your Financial Tools In A Binder Or File Binder

budget folders

A budget is your financial bible and you get the options to slash budget categories and plan your journey. 

So today I wanted to talk about the ways our budgeting journey has evolved. 

The budget we have for free on the blog not only helped us save money, pay off debt but it allowed us to save and buy a house.

Using the same budget in 5 years we had become mortgage-free which was a financial victory for us.

I want to share with you 8 financial tools that we use when it comes to budgeting in the CBB house. 

Quiet Home Office Space 

 

home office space

The quiet home office space where you can organize your financial tools is imperative.

If you don’t have an office that’s fine just find a quiet place in your house where your computer, laptop, or other devices are needed. 

I have a home office in the basement where I do all of my work because when our son is home he always wants my attention.

When work is over then we play and besides trying to focus with people talking is annoying.

Your office should embrace a positive environment to keep you motivated. 

Overdraft Protection Is Part Of Financial Tools To Have

It costs you nothing unless you need to use it however it is always great in the event something happens.

That’s what we found out however you don’t want to use an overdraft for buying Christmas presents, furniture, etc. 

If you use it make sure it’s for an emergency if you have nothing saved and that you can pay it back promptly. 

Overdraft protection helps cover occasional shortfalls in your chequing account, up to your approved overdraft limit even if you have insufficient funds in the account. It helps you manage your finances by allowing you to complete a transaction. – TD Canada Trust

Do you need overdraft protection?

A while back we had overdraft protection until we added each other’s names to our bank account.

We did this if one of us passes away that the bank accounts wouldn’t be frozen

During that time we didn’t move enough money to our chequing account for our bills and found out there was no overdraft. 

When we added our names to each other’s bank account the overdraft was not discussed. 

There are several benefits to having overdraft protection:

  • Helps cover unexpected cash shortfalls by providing automatic protection against declined transactions.
  • Prevents Non-Sufficient Funds (NSF) charges from occurring. – TD Canada Trust.

Budgeting Rules and Goals

This may sound odd to some couples but we have budgeting rules and goals that we created for ourselves.

Here’s an example;

Budget Spreadsheet or Basic Budget

Like I’ve mentioned you need to find a budget or budget app that fits your needs. 

You can stop and start another budget until you find one that resonates with your goals. 

Not everyone is efficient with excel so perhaps look for a printable budget or budget app. 

Have this ready for the new year.

For subscribers, you can find my Free Finance Tools Here.

Calculator

financial organization

Don’t try and budget in your head because mistakes can happen and mess up your monthly budget.

Mrs. CBB and I use a calculator or we use the calculator on our smartphones. 

Either way is fine as long as you keep a calculator handy.

As well if you’re using a tabled, desktop computer or laptop they all will have calculators.

Pens, Pencils, and Pens

budget file folder

Stock your quiet office space or room with pens, pencils, and erasers which always come in handy.

I’d also consider having a backup USB for all of your important documents as well as a photocopier.

You find photocopiers at Walmart for dirt cheap and I bet there will some after Christmas Deals on Boxing Day.

NoteBook

Budget Binder

 

We have one notebook in which we scribble numbers and make notes about our budget.

There’s a point where you must evaluate your budget to see if it’s working for you.

Perhaps you want to move to a different budget or switch up the budget to personalize it better. 

Motivation 

Motivational quote

After all of the years of blogging at Canadian Budget Binder what I tried to do the most is to motivate people to create a budget. 

I even went as far as doing quite a bit of work to design excel budget spreadsheets to further motivate people. 

If you have positive people in your life and believe in yourself through the good times and bad you’ll succeed. 

Related; How Mr.CBB Got Our Budget Back On Track

Overall Comments

There certainly other financial tools you could add to my list but these I feel are the bare essentials for someone new to budgeting. 

You will only get out what you put in and remember why you started the journey in the first place.

Create a goals list at the start of the year and revisit it to see how well you are keeping up with your dreams to be debt-free.

Discussion: When did you start using a budget and why?

Leave me your comments below and I’ll respond to them all. 

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One Comment

  1. I started budgeting in detail about 7 years ago.
    Prior, it was always by the seat of our pants, always paying the bills…but sometimes I used a credit card to carry the big bills month to month.
    Then came a month where we needed a bunch of repairs to our vehicles…and things came into
    sharp focus.
    We weren’t getting ahead, weren’t prepared for our future.
    I took the bull by the horns, and went through everything in detail..,.
    We cut, retooled our thoughts, made tough choices that made ME unpopular; however, it was worth the pain, sweat and tears.
    Today we have paid down 82% of our debt, with a determination to finish by Feb 2021.
    We pay cash for vehicles, have done house renovations with cash, pay for Christmas etc with savings, never run a credit card balance no longer than week to week.
    I’ve logged over 16,500 transactions in my favourite budgeting software that allows me to budget, put in recurring expenses, track all my accounts…and I can export it to Excel too.
    It’s addictive, for sure.
    I’ve “not spent” $55,000 by using coupons, cash back apps, shopping sales cycles, using rewards cards.
    All for my investment of about 5 hours a week. Which is better pay than a part time job! I can do it without leaving the house, I’m my own boss.
    I see pennies, quarters and dollars flying away when I miss something…literally.
    I’ve trained myself to consider how many hours I work (after taxes) to buy things.
    Face your fears, your demons, put it down and commit. I find in some relationships there’s a driver and a passenger instead of equals, and that’s okay.
    Just take it in hand.

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