A New Year, A Fresh Start – Part II – Budgeting and Debt in Sarnia

by Joel Sandwith on January 9, 2012

Last week I suggested that  you to start tracking your expenses, hopefully you’ve had a chance to start.

The reason this is step one is simple – most people have a distorted view of how they spend money.  It’s not uncommon for people to underestimate groceries by up to $100 per week for a family of four!

The next step is to identify changes you can make.  Large changes are great, but often can’t done quickly, or at all.  Small changes however are vital and easier.  Look at your spending the last two weeks – any surprises?  Anything you can live without?  Start there.  Cut out small expenses that add up over time.  It’s a cliche to say that a small change over time adds up to big savings, but it’s true.  If you spent $2 less per day on small stuff, like an extra coffee for example, over the course of a year you’ve saved $700.  If you do that for 30 years, you’ve paid for a car.  At $2 per day.

Now start examining what you thought you thought.  Which means:  are you sure you like the decisions you make?  For example, is there a chance that you buy a brand of dish detergent that is more expensive, but not actually better than the cheaper stuff?  Do you have features on your phone or stations on your cable package that you don’t actually need?  Do you make an effort to reduce the cost of heating and lighting your home?  Are you combining as many errands as possible to cut down on driving and therefore saving gas $$$?  All of these are small, taken individually, but added up can make a substantial difference in your cash flow.

Next week:  setting a ‘budget’.

For now, if your debts are simply too big to manage, call us at 1-866-747-0660 or locally at 519-344-1058 for a free evaluation of all of your options to deal with that debt.

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