Messing up your budget

Every financial adviser recommends a budget as one of the preliminary steps to financial planning. But a budget is only a guideline. It is only as good as the information that is put in to it. If you´re not honest or if you simply make a mistake about your expenses, the budget isn´t going to work. It is also only as effective as the determination to follow it. If you don´t put in the effort, a budget is worthless.

(Credit:yourmoney.ca)

The Signs

You may need help managing your money and debts if you say yes to some of the items on the list below. There are some definite warning signs, which may indicate that you need assistance with debt management. These warning signs can include some or all of these:

1. difficulty paying bills on time
2. receiving collection calls or past due notices
3. living in your overdraft or line of credit
4. losing sleep worrying about debts
5. spending more than your income allows
6. not paying credit cards in full each month
7. impulsive spending due to financial worries
8. hiding spending or debts from a partner
9. allowing bills to stack up because you can’t pay them
10. a decline by your financial institution to consolidate your debts
11. no budget or spending plan in place
12. feelings of hopelessness that you’ll never get out of debt  

 

If getting out of debt is a goal for next year now is the time to plan.  For those of you in the Kelowna BC area I am hosting a one hour information session on Jan 7,2013 at the down town Bean Scene at 7:15 pm or Jan 8 ,2013 at the Bean Scene Landmark at 1:45 pm. All I ask is that you buy coffee or tea from the shop.

If you are too far way to come to this information session please email me and I can get some information to you.

Space is limited so you must registrar at,  thisbabaknowsmoney@gmail.com

Tackling Debt

The first step in tackling any problem is to fully understand it. When it comes to debt, you should know everything about the terms and conditions of the money you owe. Here are some tips and tools to help you understand your debt.

1. Put Your Debt On Paper: The very first step is make a list of the debts you have. The list should include the following information:  the outstanding balance; the interest rate; and the minimum payment.
2. Take Advantage of Personal Finance Software: By now many people already have and use personal finance software like they can help you understand how to pay off that debt.
3. Use Free Online Tools: There are many budget tools on line. These tools can track your debt and are easy to use. And it’s hard to beat free!
4. Use Free Excel Templates: Microsoft offers free Excel templates that can help you track your debt and a budget.
5. Involve Others: It’s important that your spouse or significant other is involved in the process. If you don’t see eye-to-eye on finances, it can make getting out of debt even more difficult than it already is. You both should be on board, particularly as you develop a plan to tackle the debt.
6. If it is too much : There are people out there that can help you, find a personal financial coach; such as, “ This Baba Knows Money.”

Contact me at,  thisbabaknowsmoney@gmail.com

What We Feel

 

 
Most people think that events cause us to have specific feelings.  Very few people understand that events have no inherent meaning and thus cannot cause feelings.  They aren’t aware that we automatically and unconsciously give meaning to meaningless events and it is that meaning that causes most of our feelings. As long as you think something outside of you is the source of a problem, your ability to resolve the problem is diminished.  As soon as you recognize that you are the source of the problem, your ability to resolve the problem is significantly enhanced.
So what has this have to do with money? What got you in this money mess? Children?  Spouse? Peers?  No, it was all the choices that you made based in emotion. You use money to satisfy some emotional need like, getting the kids to stop whining. Spending too much money on a night out so friends would not know you are tight for cash, which would be unthinkable.  Get your head out of the sand so you can start to solve the problem.

Many Changes on the Way

This blog will soon be part of the new web site
The company has changed its name to " The Baba Knows Money"
While I will continue to blog it will be in a new formate.
This new company focuses one on one coaching for those who feel there is more month than money. I help those who seem to have a hole in there pocket get a grip on their spending and get their debt under control. I also do a workshop  called "Is there a Hole in my Pocket?" In both case we explore values, beliefs, and behaviours around money so you can make long term changes. I am available for presentation to groups that may have an interest in money and emotion. This presentation take a light hearted look at the mess many Canadian's find themselves in while providing the listener with many useful tips.
Keep posted for the changes

Christmas 2012

Make this a different Christmas; focus on friends and family. Even if it has been tradition to spend lots of money on gifts, make the gift about the person not the dollar amount. When I lived in Edmonton, my neighbour and his brother-in-law would compete to be the most inventive in how they wrapped each other’s present. It was not what was inside, but the process of getting it open.  They planned it for months before, and talked about it for months after - making them smile at the memory.
Sometimes, I think many people feel trapped by their habits. When we become comfortable with a certain action, we can feel that it’s so ingrained in us as a human being, that it’s impossible to change it.  Luckily, we are free-thinking human beings, and we can take charge of our actions. We are the deciders of our fate; if we want a life a filled with financial, personal and professional success, we can take steps towards that.
Actions for Christmas 2012

·        Spend less money

·        Spend more time with people who are important to you

·        Do some simple, inexpensive activities

·        Set a spending limit and stick to it

·        Start saving now ( you may want to start in January 2013 for next year)

Debt Consolidation

Debt Consolidation

Debt consolidation……does it work?  I would equate debt consolidation to taking the weight loss pill, or that strange diet where all you eat is cabbage.  You know those crazy approaches all of us have tried at some time - did they work?  Most likely they did not.  One of the systems that works is eating right and exercising.   You can keep this up for a lifetime, and thus keep the weight off.

It is the same for debt.  If it goes away in one stroke of a pen, we have not learned the new behaviours or attitudes required to maintain a lifestyle of no debt.  We will gain it all back in the long run.

If you’re freaking out right now wondering how you are going to continue to pay the bills and the debt, it is time to make some changes to your spending patterns.  Look at some of the previous blogs for some tips.  If the wolf is at the door, you may need to consolidate.  Remember, for long term success; work with someone to change your spending patterns.

If you want some assistance to make the changes required, contact Susan at smkbusinessservies@live.ca