Here in Brantford, whenever I meet with someone in debt, I always ask a simple question: what comes in, and what goes out each month? I will ask you that household budgeting question to determine if your debts are manageable on your current income, perhaps though a consumer proposal.
Some people can tell me exactly where their money goes, but most people can’t give me specifics. They know the big numbers (like rent), but they don’t know the rest of their expenses. Why? Because most people don’t have a household budget. Budgets are hard to prepare, and take time to keep up with every week.
So here’s what I tell people here in Brantford: don’t budget! Problem solved.
Now just because I don’t believe in budgeting doesn’t mean I don’t believe in managing your money. I do. Money management is very important. You need to manage your money to pay off debt, pay your monthly bills, and to save for the future.
So how can you manage your money without budgeting? Here’s my solution:
Pay your bills as often as you get paid.
That’s it. If you get paid weekly, pay your bills weekly. Instead of paying your phone bill for $100 once per month, send them $25 every week, on payday, with internet banking.
For full details you can read my report on The Secret to Making a Budget, or you can watch these two short videos that explain everything:
The Secret to Budgeting, Part 1:
The Secret to Budgeting, Part 2:
If you have so much debt that budgeting won’t help, give my office a call in Brantford at 519-770-4440, or e-mail me, and we’ll discuss all of your debt management options.
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