TOP TEN RULES FOR SUCCESSFUL MONEY MANAGEMENT

1. PLAN FOR THE FUTURE - major purchases and periodic expenses.

2. SET FINANCIAL GOALS - including short, mid and long range financial goals.

3. KNOW YOUR FINANCIAL SITUATION - by determining your monthly living expenses, periodic expenses and monthly debt payments.

4. DEVELOP A REALISTIC BUDGET - and follow your budget as closely as possible. Evaluate your budget. Compare actual expenses with planned expenses.

5. DON'T ALLOW EXPENSES TO EXCEED INCOME - and try to avoid paying only the minimum on your charge cards. Don’t charge more every month than you are repaying to your creditors.

6. SAVING IS GOOD - especially for periodic expenses, such as home maintenance. Save 10 to 15 percent of your net income and try to accumulate three to six months salary in an emergency fund. Put money away for retirement, by opening a Registered Retirement Savings Plan (RRSP) and take advantage of current income tax rules that allow for other tax-deductible savings.

7. PAY YOUR BILLS ON TIME - and maintain a good credit rating. If you are unable to pay your bills as agreed, contact your creditors and explain your situation. Contact Credit Canada for professional advice.

8. DISTINGUISH THE DIFFERENCE FROM NEEDS AND WANTS - and take care of your needs first. Money should be spent for wants only after needs have been met.

9. USE CREDIT WISELY - and use it for safety, convenience and planned purchases. Determine the total you can comfortably afford to purchase on credit. Credit payments should not exceed 15 to 20 percent of your net income and it is important to not borrow from one creditor to pay another.

10. KEEP A RECORD OF DAILY EXPENDITURES - by using a “Monthly Budget Tracker” daily expenses budgeting booklet to assist you in identifying how you spend your money and where any adjustments need to be made.

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