8 Tips for Managing Your Expenses with a Budget
January 13, 2023
It has never been easier to manage your income and expenses! There are resources and tools all over the internet that, with some data provided by you, show you the picture of your cash flow situation at the end of the month.
Here are some tips and tools to help you in creating and managing your budget:
- Be honest. If you spend more on food or entertainment than you care to admit, and don’t accurately record this in your budgeting, you may end up spending more than you intend to.
- Don’t forget about irregular expenses. Things like birthday gifts or traveling may not necessarily be a part of your expenses every month, but they will be through the year. Plan for it and it won’t seem like a burden when the time comes.
- Also don’t forget about irregular income. However, if you can’t count on it to arrive by a certain date, perhaps don’t include it in your plans to cover immediate bills that are time-sensitive.
- Include rainy-day savings. Car repairs, home repairs, & medical expenses don’t wait for you to be able to cover the expense easily. Building a safety net (outside of your regular chequing account) will offer peace-of-mind when these situations come up.
- Keep your goals in mind. Whether short or long-term financial goals, set up a savings vehicle to include them in your budget. Things like retirement, saving for a home, or your child’s education should be considered.
- Both needs and wants are important. Your budget doesn’t end with the monthly bills, we spend money on more than that! Sports & recreation, concert tickets, and spa days don’t need to be excluded, but can be planned for.
- Use a budgeting tool. There are many resources available through fund companies we utilize as well as the federal government to bring together the many pieces of your budget puzzle:
- Government of Canada’s Budget Planner: https://itools-ioutils.fcac-acfc.gc.ca/BP-PB/budget-planner
- Dynamic Funds’ Home Budget Calculator: https://dynamic.ca/en/tools/calculators-and-planners/calculators-and-planners/home-budget.html
- RBC’s Create a Budget Calculator: https://online.royalbank.com/cgi-bin/tools/budget-calculator/calculator.cgi
- Review your budget regularly. Things change. Inflation happens. So do raises and job changes. Reviewing your expenses and income on a regular basis will show you where your original plan may have had some holes, or potentially where you can be splurging a little more.
It’s never too late to start taking control of your cash flow. Start with the last month; how much did you spend on groceries? List out your regular bills like rent/mortgage, cell phone, internet, etc. From there you can categorize your spending; many banking apps can do this for you. Keep it simple!
The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances. This Blog was written, designed, and produced by Natalie LeBlanc & David Moore, PFP, STI for the benefit of David Moore, PFP, STI who is an Investment Fund Advisor registered with Investia and does not necessarily reflect the opinion of Investia Financial Services Inc. The information contained in this article comes from sources we believe are reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any securities. Mutual Funds, approved exempt market products and/or exchange-traded funds are offered through Investia Financial Services Inc.
