Let’s address your financial stress!
Finances? Budgeting? Expenses? Savings?
Do any of these words make you anxious or stressed? Dealing with our finances can be a stressful experience for many of us, and often it can feel overwhelming when looking at all the pieces and trying to figure out where to start.
We’ve put together a simple system below that includes links to resources and some simple and practical ways to approach budgeting and finances.
First things first! You don’t have to do it all at once, that can be stressful and overwhelming. Try taking it one thing at a time, don’t try to overhaul your whole life at once. Taking control of your finances can help you achieve your life goals and can help alleviate a lot of stress in your life.
Phase One: Planning & Research
1) Figure out where you’re starting (do a financial audit – it sounds scary but it’s basically a list).
Make 5 Lists: Income, Bills, Debt, Savings, and Expenses. Listings things this way can show you what money is coming in (Income), what absolutely needs to be paid each month (Bills), what savings or debt you currently have (Debt & Savings), and where your money is being spent (Expenses). Knowing where your money is going and if you expenses are exceeding your income is an important place to start.
2) Organize your expenses into categories. Doing this can help you see how much money you are spending in certain areas and you can start examining where you might be able to cut some expenses and save.
3) Think about the future! Is there something you want to save up for? Is there a financial situation you would like to be in within the next 5 years? What could you do now to achieve that?
Say you’re looking to purchase a new computer for school. You need to know how much it’s going to cost, when you’re going to need to make the purchase, how could the total amount be broken down into smaller amounts that are easier to save?
Phase 2: Budgets & Savings
4) Create your budget with a system that works for you! There are a ton of different ways to create and use a budget, the best budget system is the one that you will actually use. Here are a few different tools or practices you can utilize:
– Google Doc Template
– Apps: Mint, You Need A Budget
– AC Financial Aid Budget Template
– paper and pen
– Excel spreadsheet
– cash and envelopes/jars
5) Set up an emergency fund and savings accounts. Check out what your bank has to offer, there are lots of ways that your bank is there to support you. Schedule a meeting with a financial advisor or just scroll through their website. Try taking advantage of auto withdrawal systems at your bank, for example: some banks can set it up so every time you have a transaction, a certain amount of money is moved from one account to a savings account. Even if it’s $0.25 it will add up. You can also set up weekly or monthly withdrawals to savings, automating these can help you achieve your savings goals without even thinking about it.
Phase 3: Saving Money
6) Savings Tips!
– Check out the wide range of coupons that are regularly updated
– Sign up for Loyalty or Reward Programs (PC Optimum, Starbucks, Triangle, Petro Canada).
– Switch to buying used or thrifting for your next clothing or household purchases – Check out places like St. Vincent de Paul, Value Village, Kijiji, and ReStore.
