“A report released Thursday by TransUnion shows that the average Canadian’s non-mortgage debt reached $26,221 in the second quarter of 2012, up $192 from the previous quarter. The $26,221 amount is the highest per person debt level since the credit bureau started tracking the data in 2004.” The borrowing binge: Consumer debt hits eight-year high by Roma Luciw, released Aug 22/12 Globe Advisor.
|The reports went on to say that parents are struggling to purchase the items required to get children off to school and many more are struggling with the transition of children to post secondary education. A great challenge as well is the growth of debt among retirees with Fix Incomes. It simply is not enough to cover the lifestyles we have grown accustom to.|
|Off and on for many years, I held a seminar called “The Donut Investment”. I have met many who never seem to have any money but always were able to have the “Toys”. In wondering about this I did some brief calculations and decided that if we set aside just one weeks of Tim Hortons or Starbucks a month, and invested that money over 15 years we would have an additional $23,000 in our investment portfolios. Now that for sure is Small Stuff. However, as time goes on I think we need to begin sweating the Big Stuff. Savings is no longer an option. It has to become a very intergral part of our lives. It’s not uncommon to find people going to a great deal of effort in order to save a small amount of money. But, what if that same effort were applied to saving a larger amount of money, rather than pinching pennies?
By Sweating the Big Stuff I mean everything is on the table.
We need to consider how we spend our money. A recent expense we have acquired is our cell and communication costs. Take serious look at your cell, internet and cable costs. This is a necessity, but are all the packages we add to these plans a necessity?
What about the challenge of paying for higher fuel costs in your home. New windows or a higher efficiency furnace may cost a bundle now, but the costs savings in fuel in the future worthy of your consideration.
Take a look at your home and auto insurance policies – are they adequate for your needs. Take a look at your polcies. You will find room to improve your monthly payments.
For us gals, take look at that closet – ouch – are there things we bought on impulse and never have them on our body – what about a consignment store, or give them away to someone who will actually enjoy and wear them.
There is never a time when you are too late, or you should have started earlier. The best time of course, would have been 20 years ago, the next best time is today.
If we have high interest debt we cannot save. All the money you could be saving you are paying out in interest. If you take care of this issue, you can free up $$$ to save.
Why is saving money a challenge – the reasons are endless and quite varied. Understanding the basics of Personal Finance is important – the budget although boring is an important tool. Learn how credit and debit, as well as Investing work, and the role they play in your financial health, and even your mental health. If you are missing this component you are spending your retirement now .
Prepare to begin this new season with the right plan to get ahead and begin to Pay Yourself First. Contact me at www.Diannbutt.com I will be waiting for you.