Dad Knows Best Five Tips On Budgeting Worth Passing Down

Despite my efforts to prove otherwise throughout my youth, Dad often knows best. Whether it’s how to throw a baseball or how to hook up the surround sound, Dads are often a source of information. If you sit down with your Dad, he may have a lot of valuable ideas and pieces of advice on how to budget too. Here’s a list of tips you might hear from Dad:Don’t spend what you don’t have – Seems simple enough, though not as easy to accomplish. With the introduction of credit cards, it’s easy to charge your spending and worry about paying the balance later. Rule of thumb – don’t charge anything on your credit card for which you have not already set aside a payment for. Cash only – You don’t have to live on a cash only basis forever, but it’s a great idea to try for a while. By living only on cash, you will have the opportunity to connect with the amount you’re spending on everyday items, which will especially hit home on extravagant purchases. Save, save, save – A small percentage of every paycheque should be set aside for emergencies. Life is full of surprises and some of them cost money. Emergencies can include any number of things: roof leak, car repair, layoff or injury. While you’re setting up an emergency account with your bank, why not start other accounts. Online banking makes it so much easier. Maybe you want to set up a “Trip to Italy” fund and put money in each month for your five year goal of seeing an Italian soccer game. Or maybe you want to start an account dedicated to repairs and maintenance. Having banking ‘buckets’ will not only help you prioritize your savings, it will also be a continual encouragement as you see your financial priorities really starting to add up over time from your efforts. Budget – Create your budget. Follow your budget. Review your budget. Then go back and start over. A budget is an ever changing task. We never spend exactly what we think we’re going to spend. Sometimes it’s more, sometimes less. What is important, is reviewing what you’ve spent and determining if you’d like to make changes. It’s important to remember no one is judging where you spend your money. That part’s up to you. As long as you’re happy with the results, you’re doing it right. Do whatever it takes – If you’re new to the financing world or haven’t saved your emergency fund, you might need to make some other decisions. You may need to take on a part time job. Even working a few hours once a week will result in more cash flow coming in, that will allow you to pay off debt or save for that amazing trip you want to take. Maybe you’re working in an area where there are a lot of people throwing away pop bottles. Ask around to see if anyone minds if you take them in and keep the cash. The effort required is minimal but it’s a quick few bucks in your pocket. Get creative and go for it. If at the end of the day, you find that you’re in financial trouble and you need some help sorting out what your options are, it might be time to seek the advice of a professional. A Licensed Insolvency Trustee will be able to explain all of your options so you can make an informed decision as to which route is right for your personal situation.MNP offers a free consultation and can provide some peace of mind as you work towards a fresh start and a strong financial future. Sandra Landry is a Licenced Insolvency Trustees within our Edmonton location. To learn more about how MNP Debt can help you, contact any of our local offices at: Edmonton (Downtown) 10235 101St N.W., Suite 1300, Edmonton, AB, T5J 3G1 T: 780.455.1155 F: 780.409.5415 Edmonton (North) 13620 97 Street NW, Rosslyn Inn & Suites, Edmonton, AB, T5E 4E2 T: 780.455.1155 F: 780.409.5415 North East Edmonton 12904 - 54 Street, Edmonton, AB, T5A 0A4 T: 780.455.1155 F: 780.409.5415 Edmonton (South) 9426 51 Avenue NW, Suite 201, Edmonton, AB, T6E 5A6 T: 780.455.1155 F: 780.409.5415 Edmonton (West) 200, Quikcard Centre 17010 - 103 Ave, Edmonton, AB, T5S 1K7 T: 780.455.1155 F: 780.409.5415 ​ ​​​​