1. Make a plan
Set reminders about when to pay bills to avoid risking late payment and high interest fees, ideally in order of which will rack up the most interest the longer you wait – usually your credit cards. Our Vancouver Licensed Insolvency Trustees can help.
2. Budget your net worth, not income
Your salary and extra sources of income, less the money you need to pay bills is a more realistic perception of your actual take-home. After all, you can only save what you have. Debt solutions in Vancouver are available as needed.
3. Set financial goals
To stay on track, it will help to map out what you want to achieve. Make small goals, splitting them up if necessary to simplify them and avoid getting discouraged. You will benefit by planning out where your money will go in a realistic timeline.
4. Treat yourself well
Generally, people who follow a good health and fitness regime will extend this practice to their finances. Adopting a positive attitude and friends with similar good habits can also help you improve the financial aspect of your life.
5. Avoid any debt
If you already owe money, focus on paying it down immediately. The more debt lingers, the more it will grow. Paying off even small amounts at a time adds up. However, if you feel as though your debt is becoming uncontrollable, consult a Vancouver insolvency Trustee.
6. Do not co-sign
It can be hard to say no to friends or family members who ask for help, but co-signing a loan puts you in a vulnerable position. Essentially, they are responsible for your credit score, which will be negatively impacted if they miss any payments. Instead, suggest they meet with a bankruptcy trustee in Vancouver.
7. Investigate before getting a loan
Avoiding private loans for your education is a good idea because governmental sources afford greater flexibility to pay them off. You should also try to negotiate mortgage payments so they are less than 28% of the income you make each month.
8. Shop smart
Simply spending less to save money makes sense, but poor quality items can end up costing more in the long run. Shabby events or vacations, likewise, feel unsatisfying. An item you wear 100 times, or an experience you thoroughly enjoy, is a better investment.
9. Retire smart
Most people dream about retiring, but not everyone plans accordingly. Saving money is an integral part of the process – without it, the reality of not working is worrisome. Avoiding any prior withdrawals from your RRSP can be vital.
10. Keep track of your credit
Spending well below your limit each month, paying bills on time and not accumulating debt on your cards should give you a good credit score. Either way, it is necessary to be aware of your standing and how you appear to potential lenders. Debt solutions are available in Vancouver if you discover any problems.
11. Get more insurance
Your employer likely provides a basic life insurance policy, but adding more is helpful if something should happen to you. Home, content or even renters insurance also protect against natural disasters, robberies and other incidents.
12. Separate chequing and savings
Keeping money allotted for spending and saving in different accounts will help distinguish between the two. This is even more effective if they are at different institutions, making the money harder to transfer.
At Crowe MacKay & Company, we have over 60 years of experience and offer free initial consultations. If you have any questions regarding the information above, contact our office today and start your debt relief journey.
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This article has been published for general information. You should always contact your trusted advisor for specific guidance pertaining to your individual needs. This publication is not a substitute for obtaining personalized advice.