- Plan. Assess your needs for the future, major purchases and periodic expenses.
- Set Financial Goals. Determine your short, mid- and long range, wealth-building goals.
- know your financial situations. Determine your monthly living expenses, peridoic expenses and monthly debt payments
- Develop A Realistic Budget. Follow it closely and evaluate it regularly comparing actual expenses with planned expenses.
- Don't Allow Expenses to Exceed Income. Pay down your credit cards, pay more than the minimun amount, and don't charge more on the card than you are repaying to your creditors.
- Save. For periodic future expenses, try: 1)saving 10% to 15% of your net income; 2) Accumulating 3 to 6 months salary in an emergency fund; 3) Putting money in a RRSP or saying for your child's education (RESP)
- Pay bills on time. to maintain a good credit rating, contact your creditors if you are unable to pay when bills come due. The Ontario Association of Credit Counseling Services can like debtors to professional advice if they are overwhelmed with their situation.
- Distinguish Between Needs and Wants. Take care of needs first.
- Use Credit Wisely. Know the total you can comfortable affod and keep payments within 15% to 20% of your net income.
- Keep a Record of Daily Expenditures. Detail how you spend money on a daily basis, so you can adjust your budget as needed.
By: Wayne F. Wilton
Certified General Accountant
109 Griffin Street North, Smithville, ON, L0R 2A0, 905-957-1211