Sandra Sykora, Trustee
This week past both the Federal and Ontario provincial governments released their respective budgets for the coming year. My overall impression is it is all a bit of “nip and tuck” in the budgets – nothing drastic. Both are looking to reduce spending and save money to reduce the deficits. The Ontario budget is projecting a deficit of $15.3 billion. I deal with numbers and financial information all day but to be fair I am not sure I can really comprehend how much money, other then, it is a lot. It reminds of the commercial on TV with the two men discussing how much they need for retirement over the garden fence. Of course one has no plan so no idea and refers to his amount as a “gazillion dollars”!
I cannot imagine running my household without a budget or a plan as it would only lead to worrying. Not knowing would be the most stressful. So when people come to see me in our Toronto downtown offices not only is a good budget in order but then there is the plan. You really cannot have one without the other.
Both Ted Michalos and Doug Hoyes talk about the need for budgeting and how to do this. Doug has a video on this and Ted also has written on it.
However the jist of it all is that you need to know how you spend your money. So if you do not know how you spend your money then you need to watch your spending over a period of a couple of weeks or for a month. Keep a log and write down everything you spend your money on in that period. I believe Doug advocates budgeting based upon pay period. So if you are paid every week then what funds do you need for that week in order to cover your expenses. No matter how you do it you, once you know how much you make and what you spend it on you can change habits and plan for the future.
Sometimes once people do a budget and write down their income and expenses they soon see in black and white where the problem is and how it is they have no money left over at the end of month. There are ways to deal with debt and this shortfall on your budget. We would be glad to meet with you and assist you with the process and come up with a plan on how to deal with your debts. Bankruptcy is only one option. There is also a consumer proposal option whereby you repay a portion of your debt and this process is a legally binding contract if the majority of your creditors vote yes.
If you find yourself unable to meet your debt replayment obligations for any reason, keep in mind there is no charge for you to come in and meet with one of our professional team members who will be able to talk with you about your own financial situation. We’re here to help you understand your options and come up with a plan that works for you in order for you to get the fresh start that you’re looking for. Give us a call at 310-PLAN or email us to set up a meeting today.