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DIGGING DEEPER: Tips to move out of the paycheque to paycheque cycle

A Regina credit counselor offers money management tips in wake of recent survey showing nearly half of Canadians live paycheck to paycheck. Global News

A Regina credit counselor offers money management tips in wake of recent survey showing nearly half of Canadians live paycheck to paycheque.

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According to the Canadian Payroll Association’s eighth annual research survey 47 per cent of people would find it difficult to fulfill financial obligations if their paycheque was delayed by a single week.

In Saskatchewan 48 percent of people reported living paycheque to paycheque and another 35 percent of Canadians reported feeling overwhelmed by debt.

Taniel Ell with the Credit Counselling Society offers some tips to help manage your finances.

Money management tips

Track your spending: Become aware of what [you’re] spending. Do that by simply writing it down on a piece of paper, using a spread sheet and there are apps that do as well. Once you become more aware of your spending  it’s time to look at where you can make some reductions. Maybe reduce and eliminate the non-essential spending like eating out and things like that. If it’s not the spending maybe it’s the income and it’s time to look at increasing that somehow.
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Be mindful of small costs:

Grabbing a coffee on the way for work or going out for lunches – you don’t think about it because it’s maybe $2 here and $5 there, but over the course of the month I’ve seen people spend $100-$300 on that stuff.

Monitor your credit: People will use it having full intention of paying it off but once high interest rates take effect on those debts, than the minimum payments are just going to interest. So, not only are they making their regular living expenses and household expenses but now they have a debt expense as well that they didn’t quite think of.

Pay yourself first: Essentially you want to put about 10 per cent of your net pay away but sometimes that is a challenge for people so it’s doing what you can. When you get an increase at work tuck that away, [same with] income tax refunds and things like GST cheques. If you can save money on expenses then tuck that away. It’s really important that you pay yourself first and set goals. Sticking to those goals in your budget is going to be key to saving.
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Budget fun money: Live within your means. Track what your spending and don’t spend more than you earn.

Make sure you put money away to have fun because we don’t work to just pay our bills.

 

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