According to Statistics Canada, more than 70 per cent of Canadians have debt. That is no small number! In light of this revelation, we’re taking a look at tips to help get out of debt and minimize your chances of incurring more debt in a two part series.
Tip #1: Keep tabs on your spending.
How are you going to know where your money is going if you don’t keep an eye on your transactions? Take a look at your fixed and variable spending to see where you can make changes. Whether that means cutting out or cutting back, you’ll have a much better idea once you begin tracking your expenses.
Tip #2: Make a budget.
Once you start tracking your spending, fixed and variable, you’ll be able to create a budget. Budget is one of the simplest and most effective ways to manage your money and dig out of debt. It’s also a great strategy to staying out of debt! Don’t spend more than you make and don’t forget to give yourself an allowance.
Tip #3: Cut back on your tech time.
Of course, how much you cut back depends entirely on your usage. However, many people are paying for cable and internet plans that might be more than they need. How much TV do you watch? Do you need 800 channels? Do you still use a landline or is your cellular phone the star of your communication? If you aren’t maximizing your cable and internet plans, cut back.
Tip #4: Downsize.
Downsizing may or may not mean moving to a smaller home. It could also mean, getting rid of that second car or getting rid of your car altogether. Getting rid of a car could save you thousands in gas, insurance, car maintenance fees and parking fees, for example.
Stay tuned for Part 2!
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