1. Plan

for the future, major purchases, and irregular expenses.

2. Set financial goals

Set short, mid and long term financial goals.

3. Know your financial situation

Determine your monthly living expenses, irregular expenses and monthly debt payments.

4. Keep a record of daily expenses

  • Be aware of where your money is going.
  • Use a spending diary to assist you in identifying areas where spending adjustments need to made.

5. Develop a realistic budget

  • Follow your budget as closely as possible.
  • Evaluate your spending week to week.
  • Compare actual expenses with planned expenses.
  • Adjust budgets as required.

6. Don't allow expenses to exceed income

  • Avoid paying only the minimum on your credit cards.
  • Don't charge more every month than you are able to repay to your creditors.

7. Save

  • Save for irregular expenses, such as car and home maintenance, gifts, etc.
  • Save 10% of your net income for yourself.
  • Accumulate 3 to 6 months net salary in an emergency fund.
  • Take advantage of current income tax rules which allow for tax-deductible savings for retirement plans.

8. Pay your bills on time

  • Maintain a good credit rating.
  • If you are unable to pay your bills as agreed, contact your creditors and explain your situation, keep them advised.
  • Contact Solutions Credit Counselling for a professional advice.

9. Understand the difference between your needs and your wants

  • Identify what your needs are.
  • Money should be spent for wants only after needs have been met.

10. Use credit wisely

  • Use credit for safety, convenience and planned purchases.
  • Determine the total you can comfortably afford to purchase on credit before you buy.
  • Don't allow your credit payments to exceed 20% of your net income.
  • Do not borrow from one creditor to pay another.