Do you feel bombarded by rising prices and interest rates? If so, you are not alone. Is your budget suffering? Here are some actions or solutions that will allow you to breathe again.
1) Reduce expenses
Reducing expenses is the very first thing to do, but how do you know what can be cut as expenses. Budget Express’ analyzes allow you to compare your actual expenses with what was planned. This will allow you to identify unnecessary expenses. Hunt for discounts by visiting establishments offering better prices and buy within your means.
2) Close tracking
Get into the habit of checking your financial transactions at least once a week. This has 2 advantages, firstly you will be able to adjust the situation quickly and secondly, you will also be able to spot transactions made by one or more fraudsters quickly.
3) Plan for a surplus
Allow additional amounts for each of your variable expenses. Basically, if you have a budget of $175 for groceries, allow an extra 10-15% to put aside in a savings account for future increases.
4) Pay more on your mortgage
If you are one of those with a variable mortgage rate, adjust your payments upwards (+ 1%). This way, during the next increase, your budget will not have to be adjusted, only the interest-capital portions will be impacted.
5) Drastic solutions
If your room for maneuver was already zero before the last rate hikes, you must react immediately. Are your debts suffocating you? Consider selling your property, increasing your mortgage amortization, refinancing to pay all of your debts, or consider the possibility of a consumer proposal or even bankruptcy.
Before making a drastic decision, analyzing your budget and modifying your expenses, closely monitor all your financial operations. Budget Express in the tool allowing you to regain control of your finances before it is too late.
Katie Lefebvre
Partner of your financial success