Rules for Money Management

Q.1. What steps can I take to keep control of my money?

Developing a realistic and working budget helps you to keep control of your money by knowing your expenses and how your money flows. Your costs in Canada may vary significantly from your costs in your country of origin. By keeping a record of daily expenditures you can monitor and control how you spend your money.

Q.2. How is financial planning different from budgeting?

A budget helps you keep track of your money right now and examine your cash flow. Financial planning is longer term with a focus on building for the future. Having a well developed budget helps you to set aside funds that will allow you to achieve your financial planning goals.

Q.3. Why should I avoid payday loan services?

These services are usually used by those who do not have bank accounts. The fees charged by these services are considerably higher than other financial institutions. By borrowing money in advance of your next pay cheque you will incur an interest charge which means you will have less money available with your next pay cheque. The cost of a pay day loan can be quite expensive.

Q.4. What are some ways I can keep costs down?

There are a number of little things that you can do. Always comparison shop and ensure that the purchase is necessary. Look at ways of reducing costs at home. Examine your transportation habits to see how you might reduce costs. Remember that when you save you will have more choices. See how little changes can add up.