Special tip – we have a budget spreadsheet for you! Email us to info@bluepearlmortgage.ca to get yours!

For many of us financial adjustment and budgeting is often one of our New Year’s resolutions.  After the busy, financially stressful holiday season we are all too frequently left wondering where all of our money went.  As the New Year arrives we are given the opportunity to adjust our spending and get back on the right track.  Beginning a budget can be much simpler than we imagine.  Follow these few steps and within a short span of time you’ll be able to see an incredible difference.

Here are the main points to getting your new year of budgeting on track

1. Track your spending habits – In the past most of us kept check books that were updated every time we spent money. Most of us don’t keep up this tradition but in order to budget properly it is a habit we need to return to.  The initial step to budgeting is to start to notice your spending trends.  How much are you spending on your necessary monthly bills and how much is going to extras like coffee and lunch.  Realizing just how much you’re spending unnecessarily can be a big eye opener.
2. Automatically deduct savings – Many of us wish we had a larger savings account but end up feeling like we don’t have any extra money to contribute more. If you set up an automatic deduction, even if it is only a small amount, it will add up over time.  The benefit of having the money automatically deducted is that you’ll never miss it.
3. Prioritize – After you’ve been tracking your spending for a few months you can go back over it and prioritize. This means taking a deep look at where all of your money goes each month.  Besides your required monthly spending on housing, utilities, vehicle costs, etc., there are usually other items you would like to prioritize as well such as taking a yearly family vacation, or buying an expensive item you’ve had your eye on.  Once you go over your spending habits you can decide what you can cut out to make room for the things that matter more to you.  Would you rather go on the family vacation or have a coffee every morning from your favorite coffee shop?  This is where you decide what you really care about.
4. Consider paying with cash – Credit and debit cards are the way we spend now but going back to spending cash instead of pulling out a card can make the transaction feel more real. Instead of sliding a piece of plastic you’re having to hand over hard earned cash.  Somehow that feels more painful than spending money you never actually hold.
5. Ridding yourself of debt – This can be a difficult one if you’ve racked up quite a bit of debt over the years but paying as much as you can each month will pay off big in the end. The sooner you take care of your debt the sooner you’ll be free to spend your money on better things.
6. Don’t spend what you don’t have – This happens to a lot of us. We go shopping and find an item of clothing or a household appliance that we just can’t live without.  We can’t afford it but we love it and so we buy it anyway.  This type of spending has to be curbed.  It is absolutely necessary to live within your means in order to have a working budget.  It can be hard to turn our backs on items we enjoy but it’s essential to getting bigger and better things down the road.

Now that you know the main points to getting your budgeting back on track, all that is left is to get started!

Would you like a basic budgeting template? We have a spreadsheet that works as a starting point if you would like one! Please email us at info@bluepearlmortgage.ca  and we will send you yours today!

Or, do you have debt that you need to consolidate? We specialize in debt consolidation and can help get you back on track financially. Call us anytime at (604) 510-1367 We are here to help!