A new school year can often feel like the start of a brand new calendar year. Perhaps a time when many people resolve or set goals to improve their financial situations. I thought I would compile a list of some of the personal finance books that I think could help inspire you along with your goals! Let me know if there are any books you could recommend and I'll add them to the list for others to enjoy!
Debt-Free Forever - I just had to put the book written by one of our favourite Canadian financial writers at the top! Debt-Free Forever by Gail Vaz-Oxlade "will help readers take responsibility for, and control of, their money. Gail's rules are simple: you can't spend money you don't have, you must save something, and if you're in debt, you must get the albatross off your back. But Gail knows following the rules can be tough. That's why Debt-Free Forever gives you a road map to getting out of the red in 36 months or less."
Money Making Mom - I love pretty much anything Crystal Paine of MoneySavingMom.com does. And this book is no exception. "The nuts and bolts of how to make more money from home are revealed in clear steps that can be immediately and easily put into practice. But more than just a how-to book for earning extra income, Money-Making Mom is a challenge to dream big and create a pathway for life. Paine offers examples and insights about what "finding your purpose" can look like in family, career, and service to others."
The Total Money Makeover - Dave Ramsay has become very popular, especially in the US, with his strategies that have enabled countless families to change their financial situations. Dave has written The Total Money Makeover in "7 organized, easy-to-follow steps that will lead you out of debt and into a Total Money Makeover. Plus, you’ll read over 50 real-life stories from people just like you who have followed these principles and are now winning with their money. It is a plan designed for everyone, regardless of income or age."
Your Money: The Missing Manual - Written by Get Rich Slowly blogger JD Roth, you'll find his book written in easy to understand language, with concise and clear whys and why nots to all the different aspect of personal finance. You'll get the info you need to make sensible decisions on saving, spending, and investing, learn the best ways to set and achieve financial goals, set up a realistic budget framework and learn how to track expenses and much more!
The Wealthy Barber - "David Chilton offers Canadians a common sense guide to successful financial planning with his charming story about a small-town barber with financial genius. Roy is the wealthy barber who offers Dave, Sue, Tom and Cathy great financial advice by giving them simple -- and realistic -- guidelines to follow." With more than 1.5 million copies sold to date, The Wealthy Barber is the best-selling book ever of any kind in Canada!
Your Money Or Your Life - This is an essential read for those wanting to get out of debt and develop savings, reorder material priorities and live well for less, resolve inner conflicts between values and lifestyle, save the planet while saving money, and much more! In Your Money or Your Life, Vicki Robin shows readers how to gain control of their money and finally begin to make a life, rather than just make a living.
Smart Cookies: Making More Dough - "Inspired by an episode of The Oprah Winfrey Show on personal finance, the Smart Cookies, five dynamic young women who weren't always so savvy about money, formed a "money club," and together developed strategies for turning their financial lives around - without surrendering their sanity or their social lives. In this guide, the Cookies demonstrate how women of all ages can achieve financial security. They share their own stories, offer easy-to-follow steps, and lay out simple plans for meeting any goal, whether it's eliminating debt, making good investments, becoming a smart spender or saving up for a big-ticket purchase."
Smart Couples Finish Rich - David Bach provides couples with easy-to-use tools that cover everything from credit-card management to investment advice to long-term care. From this updated, newly revised Canadian edition, couples will learn how to work together as a team to identify their core values and dreams, and to create a financial plan that will allow them to achieve security, provide for their family's future financial needs, and increase their income.
Have you indulged in some poor spending habits lately? If so, then it's time to get your budget back on track. I find once I'm on the spending train, it's hard to get off! However, I do manage to disembark eventually with a few tips I've used over the years. Take a look below at these 7 surefire ways to get your budget back on track and find your way to financial freedom.
7 Surefire Ways to Get Your Budget Back on Track
1. Go on a spending freeze.
First and foremost, if you're stuck in the vicious spend cycle, you have to just stop. Begin by vowing not to spend any money for 10-14 days. In this time, use what you have on hand and refuse to buy anything new. See how much money this spending freeze can save you. You might be surprised! You might also be surprised to find that you can be content without spending money on "stuff" because you've discovered new ways to occupy yourself.
Following your freeze, track your spending for 10-14 days. If you spend so much as a dime, write it down. At the end of your tracking period, see where your money is going. This visual data will help you see where serious cuts need to be made.
3. Start cutting!
Use the data from your spending tracking to see where cuts need to be made. Get serious about seeing these cuts through. Find ways around these purchases and then stick to it. Some examples may be eliminating eating out, turning cable off, buying less clothing for your kids or giving up monthly magazine purchases.
4. Bring friends on board.
If you need to get your budget back on track, be honest with your friends. Let them know about your goals so they aren’t trying to convince you to spend money when you shouldn’t. This way, you will also have a support system in place.
5. Celebrate small victories.
When you complete your spending freeze or tracking, or make bug cuts, celebrate! Plan a family fun day or go on a cheap date. Or, if you can, put aside $5 into a vacation fund each time you save $50. Knowing there is a reward each time you accomplish something, can be enough to keep you pressing onward.
6. Track your progress.
Each time you make a successful cut or save a dollar or two through your hard work, write it down. Track your savings so you can see how much your hard work is paying off. At the end of the week, check out your total savings and give yourself a well deserved pat on the back.
7. Don’t quit.
Even when you see the savings add up and the budget gets back on track, don’t stop! It will be important that you keep these tips in mind and perform regular check ups on your budget to stay on track.
See how simple it can be to get your budget back on track? With these tips and a bit of hard work you'll soon be seeing a difference in your budget.
Do you have any tips that help you get your spending under control? Please share in the comments!
Sometimes, the thing that makes us go over budget are certain triggers that take away our self control. You know, those things that send you into a spending frenzy or make you overpay for an item when it's just not worth it. There is one way to stop them and that is to do your best to avoid these triggers altogether!
Take a look at the list below to see if you relate to any of the spending triggers and learn how to stop impulse spending:
Stress
One main trigger is stress, being aggravated, feeling down, or on edge. Seeking out shopping as an outlet while you are on edge or upset is completely normal. BUT it’s not healthy and really leads to a lot of impulse buys. Try to find a new outlet for your emotions, something like yoga, walking, doing puzzles, a long hot bath, or even playing with your kids. It might take awhile to retrain yourself, but if you keep at it, you can nip that bad habit in the bud.
Boredom
Just like with stress, many of us use shopping to fill the void of boredom. We aimlessly browse the aisles or online to kill time and it ends up leading us into many purchases we might not otherwise make. If you are shopping simply out of boredom find another way to relieve the boredom - read a book, take a walk, have some friends over or clean out a closet and donate a bag full of items - what a great way to reverse the spending!
Addiction
Plain and simple, shopping can be an addiction. Those sparkly shoes fly into the cart, that butter soft purse goes right on top, and heck, toss in that new set of towels. Everything you like is getting tossed into that cart...and it feels great! Shopping can be a real high for some but unfortunately, like all highs, the euphoria is short lived. Especially once you realize the balance of your credit card or bank account. If this sounds like you, look for healthier alternatives, like sports and exercise, to get that same rush of excitement, or this trigger can ruin your life.
Celebration
Maybe it's not some "bad" emotion or stress that is causing you to spend impulsively, but something fabulous that happened. Maybe it was that raise you finally got at work, or you finished a semester at university with top marks. While rewarding yourself for big things can be important and a great motivator, it's important to keep your rewards in check. Instead of a big spending binge, try taking yourself to the movies or grab an ice cream cone. Small rewards can feel just as great as big ones.
Sales
Just because it’s on sale doesn’t mean it is necessarily a good buy. Do you really need it? Will it get used? Is it worth the sale price? The lure of a sale can make us buy things we wouldn't normally buy just because it looks like a deal. Look carefully at your motive behind the impulse to grab it. If the item is something you would normally buy, you can still take a little time to comparison shop and make sure you are getting the best deal.
Kids
Sometimes it is impossible to get to the store without kids but if you can, I suggest you do your shopping without them in tow. Grocery stores and every other kind of store is intentionally designed to turn them into materialistic begging little children. Candy...right at the checkout with other items like trading cards, as seen on TV items, and little toys that call out to our kids, and they listen! But even as you stroll the aisles it could be a special box of cereal, a treat, just one lunch pack, one convenience food, etc.. and we add way more to our cart than we would if we were alone following our carefully crafted list because we love those little children of ours!
Convenience
Too tired to cook? Just pull up the Domino's app and pizza dinner will be at your doorstep in minutes. Convenient yes but does it lead to needless overspending? I think so. As convenient as they may be, when you have Domino's, Amazon and other similar stores apps on your cell phone or tablet it makes it too easy to make impulse buys. Consider deleting all your shopping apps and maybe taking the extra step to get on the computer or phone will cut back your spending. In both instances there's a disconnect between us and our purchases and it makes it so much easier to part with our hard earned money.
A great way to pinpoint your spending trigger is to stop every time you want to make a purchase and try to figure out why. Do you really need it? Are you just bored? Are you only buying it because it's on sale? Keep track in a notebook, you might be surprised at what triggers you to spend.
What triggers your impulse spending? How do you try to deal with those triggers?
Credit card debt is something that millions of Canadians struggle with. It’s like a vicious cycle that never stops, unless you can get rid of the credit cards. However, it’s no secret that emergencies happen and sometimes those credit cards can be a lifesaver. Check out these tips for avoiding credit card debt this year.
Use the Cash Envelope System
If you have never used the cash envelope system, it’s definitely worth trying! Basically, you create a budget and use the cash envelopes as a way to hold the money for your various budget categories. For example, in your budget, you might have allotted $50 for eating out for the month. That $50 would go in your eating out envelope and once it’s gone, it's gone.
Set Up That Emergency Fund
It’s absolutely nearly impossible to stay out of debt if you’re not able to pay things off when they arise. Start setting up your emergency fund now, so you can stay out of trouble later. It's recommended that you have at least three months of living expenses saved up, but you can do what you feel is best for your situation.
Cut Up the Credit Cards
Of course one of the most common sense ways to avoid credit card debt is to cut up the credit cards. Instead of relying on credit cards, you can build up a savings. Having your emergency fund in place will help you avoid using a credit card when emergencies arise.
Avoid Big Purchases
Many people use their credit card to purchase bigger items that they cannot normally afford. Friends, this is called living above your means. You probably don’t need a new television or a bigger bed if you cannot pay cash for it. Sometimes avoiding these big purchases can help you be thankful for what you already have. Instead of using a credit card, start saving cash for your next purchase.
Don’t Put Someone Else on Your Credit Card
For some reason there is an option that allows you to put someone else on your credit card. This will rack up your credit card amount fast. The only one who should have access to your credit card is you. If your credit card gets lost or stolen, this can mean big trouble for your finances. If you’re trying to avoid credit card debt, it’s probably best to not put someone else's name on your credit card.
Know the Details of Your Credit Card
There are some credit cards out there that come with a hefty price tag. They lure you in with their lovely interest rates and then pounce on you whenever the promotional interest rate is up. Always read the fine print to your credit card.
Do you have some credit card debt to work off this year? How are you going to accomplish that? What are your tips for staying credit card debt free?
How to create a simple budget plan for debt repayment
A budget plan can easily help you to overcome past debt issues and pay down debt so you can become financially free. There are many ways to accomplish this, but a simple and straight forward budget plan will help make it even easier to manage. These tips for how to create a simple budget plan specifically for debt repayment will help you to get out of debt easier and faster than ever before.
Take a serious look at all expenses.
The best and most simple budget plans begin when you get serious about what you have coming in and going out each month. It's time to get serious and focus not only on your expenses but also on what you can do to increase your income.
If you see that you are living outside your means no matter how you arrange your budget, it's time to start downsizing or making major changes. Unfortunately, this can mean a second job for some people. For others it may mean cutting out a gym membership, special events, eating out or even selling the second family car. Whatever you do, you need to look at each and every expense and evaluate the necessity and ability to change it to improve your budget plan for debt repayment.
Make savings a major priority.
A savings account cannot be an option. It has to be a must-have and a priority on your list. For most people, the lack of savings is what has resulted in higher debt. If there was more money in savings, many expenses would not have occurred and would have easily been provided for. A savings account should be set up to create an emergency fund and backup plan should anything happen where you have unexpected expenses.
You can easily set this up by having funds direct depositedout of your paycheck. If you feel there is no room in your budget for savings, look to some of the things mentioned above to eliminate some expenses to create a savings budget. Even if you can only save $25 a week or even a month, this is a great beginning to a savings account that can help save the day when something unexpected occurs.
Set aside 5% toward debt repayment to begin and move upwards.
It seems like a small amount, but if you make $3000 per month that is still $150. That amount can easily be set aside to pay off debt once you've assessed your necessary expenses. Over the course of one year, you can pay off $1800 in debt. That is a significant amount for many families.
As you are able, you can increase that monthly percentage in 5% increments. A 15% - 20% debt repayment plan can make a huge difference in no time toward your family being debt free.
Building a functional but simple budget plan is easy. You truly only need to know what your income and expenses are, then work those numbers until you are able to also make room for savings and debt repayment. The difficult part comes in ridding yourself of unnecessary expenses. Because really, that's not fun, but I'm positive you will feel so happy once you get your debt payments rolling and knocked off!
There are tons of tips for how to live frugally to pay off debt out there. But today, I have gathered some of what I feel are the best ways for you to focus your income to get rid of debt and create financial freedom. Some simple changes in how you view money can truly make all the difference in the world.
Create a functional household budget.
A functional household budget is actually looking at your true reliable monthly income and true reliable monthly expenses. Fluctuating pay from part-time jobs that aren't consistent, selling something online or occasional side jobs are not consistent and shouldn't be included in your household budget. Focus on what is your primary income, then create a list of all your regularly occurring expenses. This list should include things like housing, utilities, transportation, health, savings, groceries and similar items.
A functional budget shows you what you have coming in and going out each month. If you have less coming in than going out, it's time to look closely at the differences. Is the difference because your income is too low, or is it because you're making poor spending choices? It's often a combination of both poor spending habits and an income issue. If you cannot easily change your income status, it's time to look at what your expenses actually are and streamline as much as possible. That means eliminating things that are not necessities until you are in the clear and able to meet your needs.
Understand wants versus needs.
This is one of the biggest things to understand when you want to know how to live frugally to pay off debt. It boils down to what is coming in as income and going out as expenses. Typically the expenses that are unnecessary are what have to go. What is necessary to some is not to others. For my online business I have to have Internet at home to do my work efficiently. Others can do with using their cellular phone carrier for using the Internet. What is a necessity to me is a want for them. Take the time to look in detail at each item on your expense sheet and determine what can be removed as a want until you are better able to afford it.
Things to consider that are typically wants and not needs:
Newer vehicle
Larger home or living space
Pampering like: manicures, pedicures, professional hair styling, massages or spa treatments
Eating out
Entertainment like: new video games, movie theater tickets, or amusement parks
Make savings a priority.
Ultimately if you want to live frugally to pay off debt, you need to also consider saving money in the process. For most families, debt racks up because of a lack of savings to pay for expenses that occur unexpectedly. A savings account is not just for vacations and future purchases, but for unexpected expenses. Job loss, poor health, vehicle repairs or even a new roof on your home can all happen out of nowhere and quickly incur debt if you do not have a savings fund in place.
Once you realize what you have coming in and going out each month, you can begin to focus on how and where to save money. Using coupons, eliminating expenses and cutting corners can all be done better once you understand what your true financial needs are.
- Dave Ramsay has become very popular, especially in the US, with his strategies that have enabled countless families to change their financial situations. Dave has written The Total Money Makeover in "7 organized, easy-to-follow steps that will lead you out of debt and into a Total Money Makeover. Plus, you’ll read over 50 real-life stories from people just like you who have followed these principles and are now winning with their money. It is a plan designed for everyone, regardless of income or age."
- Written by Get Rich Slowly blogger JD Roth, you'll find his book written in easy to understand language, with concise and clear whys and why nots to all the different aspect of personal finance. You'll get the info you need to make sensible decisions on saving, spending, and investing, learn the best ways to set and achieve financial goals, set up a realistic budget framework and learn how to track expenses and much more!
- This is an essential read for those wanting to get out of debt and develop savings, reorder material priorities and live well for less, resolve inner conflicts between values and lifestyle, save the planet while saving money, and much more! In Your Money or Your Life, Vicki Robin shows readers how to gain control of their money and finally begin to make a life, rather than just make a living.
