There are recurrent questions I see all the time on different personal finance blog site, how should I allocate my expenses in percentage of my income? Where should I allocate my expenses? What are the usual categories I should allocate my budget to?

In a blog post publish in 2014 on the Budget Express site (In French), Dominique Lamy presented a list of the most considerable budgeted expenses in relation to your revenue. In 2016, those percentages have not changed (see the chart below).

The percentage can vary from one budget to another. There are factors that can influence those variations like your age group, where you live, your revenue, the style of life you are looking for, etc.

Continue reading “Percentage to allow for each expenses category” →

Before deploying any personal finance or budget software program, you need to prepare.
There is nothing more frustrating than being in front of your computer and not really knowing what to do. And improvising won’t get you anywhere.
The best thing to do is to prepare in advance. Here are 10 actions you need to perform to be ready and do your budget in less than 20 minutes.

1 – List the Bank Accounts You Use in Your Daily Lives

• What is the balance of those accounts
• Do I use a debit card
• Do I transfer money from one account to another
• Do these accounts generate interests, etc.

2 – Identify Your Credit Cards

• What are the credit cards balance
• Have I set prepayment on those cards
• When do I pay those cards
• What are your credit limits
• What is my interest rate, etc.

 3 – Identify Your Sources of Revenues

• List all your revenue sources
  1. Fixed revenues : paycheque
  2. Variable sources : bonuses, expense reimbursements, rentals, dividends, garage sales, taxes, etc.
• What is the frequency of those revenues: weekly, every two weeks, twice a month, etc.
• In which account are those revenues deposited?
• Consider all possible changes that can occur, like wage increases, overtime work, etc.

Continue reading “Actions You Need to Perform Before Deploying Your Personal Finance Software Program for The First Time” →

1. 1. You Need to Know What Your Expenses Are

The most important reason for making a budget is to identify exactly where your money goes. Knowing how much you spend on groceries, clothes and even insurance can help you understand why there never is as much money at the end of the month as you thought you should have.

When you know how much you spend on each item, figuring out where money is wasted and keeping spending under control are a lot simpler.

2. Plan for Short-term Needs

We all should have long-term objectives (see point #3). But before you plan for those, you must take care of subsistence expenses, like housing, food and transportation. That’s why short-term planning is so important : you need to plan for everyday projects that makes life better for you and your family, such as repairs on the house or sending kids to a better school.

3. Plan Your Long-term Projects

We all have dreams: a trip abroad, a better car, early retirement. This is the fun part of making a budget. It’s essential to identify projects and budget to achieve those goals. To do so, placing your money at the right place and letting it work for you is essential (see point #4). Continue reading “7 reasons why you need to make a budget” →

For this first time round, I want to harken back to something extremely important: savings. There’s a rule in personal financial planning that says we should systematically save about 10% of our net income right away, yes, yes, you’ve read correctly, now, today!).  Continue reading “Savings: The 10% Rule, Re-invented!” →

To attain financial ease, you’ve got to use the right ingredients and follow the right steps, like in a cooking recipe. There are several ways to achieve this, but a common base applies to all financial success: planning, skill, patience and a little luck. One thing’s for sure, the road is often long, so it’s best to start right away.

Be Prepared

Ensuring one’s financial security is not the result of chance and doesn’t happen by itself. Some people rely on the government for a smooth-sailing retirement. With the economic health of our ministries (or lack of), you ought to forget this notion. In fact, in the same way that companies develop their famous 5-year plans, why not apply the same plan to our personal finances? Recording our financial objectives must be written down in a plan. This formalizes everything and ensures reaching our goals. Success rarely happens by accident… so have a plan! Continue reading “Financial Success – Within Your Reach?” →

Canadian households have continued to increase their debt level during the third quarter of 2011, bringing it to 151% of disposable income, which could make it, eventually, the “Sword of Damocles” hanging over the financial security of consumers for years to come.

“Abnormally low interest rates have allowed the ability to manage these high levels of debt relatively well, until now. But the Governor of the Bank of Canada, Mark Carney, has warned Canadians that they should exercise caution with their credit applications, as interest rates are going to reach ‘normal’ levels, sooner or later”, as stated by Michael Gregory last December, senior economist of BMO Capital Markets. Continue reading “Being in debt: Awareness, Warning Signs and Getting Out” →

Jean had never experienced money problems and was enjoying life. When an accident happened to him, he quickly found out that the disability insurance does not allow him to maintain the same lifestyle. He needed a financial cushion and a good budget!

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Man, 36 years old, parts finishing trainer, owns his house where he lives with his life partner and their 2 children (9 and 10 years old), has no investment other than RRSP, considers his debt ratio as average. Continue reading “Having an accident made me realize I needed a budget!” →

My intention today is not to make you cut out the morning coffee you bought at your favourite retailer, nor to point out that a dollar spent is a dollar less in your pocket. Everyone is aware that saving up can sometimes require making sacrifices. Whether it’s getting rid of a second car, bringing lunch to work on Fridays or opting for items on sale in stores, saving is a well-known theme to the majority of folks.

It’s in this frame of mind that this post will be useful to you: by presenting five strategies to start or consolidate your savings plan. Continue reading “Five Strategies to Start Your Savings Plan” →

“(…) BudgetExpress is one of the main reasons why we could realize our dream of owning a house so early in our lives. “

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Woman, 31 years old, educational technology consultant, mother of a baby, lives with her life Partner since 4 years, co-owner of a house, has an old car, contributes a minimum each year to her RRSP, thinks her debt rate is low (not considering the mortgage!).

I am this BudgetExpress user! I will be writing on this blog about other BudgetExpress enthusiasts and tell you how they make the most out of it.

Continue reading “My own house: a dream come true!” →