Speaking from experience, I have always told my children to “Manage your money or your money will manage you.” Most of us experience financial challenges at some point in our lives. It is sad to say that the average person in North America is living paycheque to paycheque. If a sea of financial disasters were to hit, they would be thrown overboard with no life jacket in sight. Here are three B’s to keep you afloat when challenges arise:

1)  Budget: Creating a budget gives you a firm understanding of your financial position. The key to budgeting is to have a firm grasp of your expenses. You may not be able to fully control your income, but you can control many of your expenses. Start by listing all your monthly expenses. If you have expenses that occur quarterly or yearly, like your property taxes, it is important to break them into monthly expenses.

For budgeting to be successful you must wholeheartedly stick to it. Many people who take the time to create a budget forget to review it regularly. I suggest you review it every four to six months to see if there are more areas where you can cut back. 

2)  Balance: Make sure your personal balance sheet is always in the black. Overdraft fees can be a pain even if your credit balance is only one dollar. The $5.00 to $30.00 service fee charged to your account for a negative balance could have been avoided. Imagine what you could do with an extra $30.00 a month… remember those compound interest lessons?

I have found that if I am able to keep track of my spending I am able to stretch my paycheque farther. Always keep a close eye on your spending in between paycheques; this is where the majority of overspending tends to take place. I just hate to give away my money to a financial institution with no interest coming back to me. When you allow your bank account to be penalized with avoidable service charges, you are literally throwing your money away. 

3)  Bank For A Rainy Day: When it rains it pours; if it is not a sudden car repair, it is a broken dishwasher or a crashed computer. Most people find themselves going further into debt to pay for emergencies that seem to pop up out of nowhere and hold them for ransom. I learned this the hard way!

For instance, as one of my cars started getting up in age, I started a car fund to cover repairs until I was able to get a better vehicle. It is only a matter of when the next unexpected thing happens like the water tank that burst and flooded my basement a few years ago, so I also started an “OMG Fund” (Oh My God Fund). It takes time and effort to build these funds, but when it rains out of the blue at least your savings will be your financial umbrella.

To achieve financial success, Budget to be aware of your expenses; be Balanced with your monthly expenses and Bank to be prepared for when emergencies happen. If you follow these B’s, your financial life will be Better🙂