If you’re in debt, the stakes are high. You need to take action and get out of debt as soon as possible. But if you are considering buying a lottery ticket or waiting for a windfall from your favorite store’s loyalty program, stop. In this article, we will look at how these quick and easy solutions to financial problems can backfire on Canadians who are trying to get out of debt.

Build a budget

The first step is to create a budget, which can be as simple or as complicated as you want. A basic outline of the steps:

  • Track your spending for a month or so and see where your money goes
  • Make a list of all the things you want to buy in the next year, and prioritize them by how they fit into your life goals—this will help you decide what kind of lifestyle adjustments are necessary
  • If possible, sell unused items on Craigslist/Kijiji/eBay/VarageSale and then use that money towards debt payoff or savings accounts until you’re ready for another splurge purchase (or until an exciting opportunity presents itself).

Check your spending

>*If you’re serious about getting out of debt and building wealth, it’s time to take a hard look at your spending. You can do this by using any one of these tools:

  • A budgeting app or spreadsheet. These are great for tracking all the various things you spend money on—and can help you set goals for reducing spending in particular areas, too.
  • A pen and paper (or even just a few lines on your spreadsheet). If a full-blown budget isn’t really your thing, try keeping track of just your “fixed” expenses like rent/mortgage, utilities and groceries with nothing more than an old-fashioned list. This will help keep things simple without taking away from their effectiveness as an accountability tool!

>When it comes down to it though there’s no right answer here; what matters most is finding something that works for YOU!

Pay down debt

Paying off debt is an important step towards financial freedom. If you’re like most people in Canada, the amount of debt you have is likely significant compared to your income. However, it’s important to remember that there are two types of debt: interest and principle. Interest is the money paid each month on top of what you owe; principle is the original amount borrowed—the part that should be paid off first if possible.

The first step in getting out of debt is understanding how much you’re paying in interest versus paying down your principle balance each month (if at all). For example, let’s say John Smith has $15,000 worth of credit card debt at 25% annual interest rates and makes monthly payments of $200 per month towards his credit cards (which covers both interest and principle). In this case, his monthly payment would only go towards paying down 1% ($200/15000) or 0.6% ($200/$1500) annually.

Don’t rack up new debt

  • Don’t buy anything you can’t afford
  • Don’t borrow money to pay off your debt
  • Don’t use credit cards
  • Don’t use a payday loan
  • Don’t use a cheque cashing service (also called check-cashing or check-cashing outlets)
  • Don’t use a home equity line of credit

The chances are very low that money from the lottery will help you get out of debt. It is more likely to damage your finances.

It’s probably not a good idea to plan on winning the lottery to get out of debt. The chances are very low that money from the lottery will help you get out of debt. It is more likely to damage your finances.

There are many reasons why this is so. First, there’s the fact that lotteries are a tax on people who don’t understand math. Second, they’re a tax on people who think they can beat odds that defy logic. Thirdly, they’re a tax on those who have given up hope and feel like playing the lottery – something psychologists call “desperation.” Lastly, casinos rely heavily upon suckers for their profits – and what better sucker than someone desperate enough to buy lottery tickets?

Conclusion

Keep in mind that winning the lottery is not a surefire way to get out of debt. There are many cases of lottery winners who end up right back where they started when it comes to planning for their future. As we’ve discussed here, there are some ways you can improve your chances of winning big and keeping your finances stable after doing so — but none of them involve getting into more debt!

Payday loans are a source of quick cash that many Canadians use to get through the month. They can be convenient when you need money, but they also come with high interest rates and fees which make it hard to pay off your debt if you take one out. If you’re considering getting involved in a payday loan, here are some things you should know before making that decision:

Make Payment Arrangements With Your Creditors

When you’re faced with a problem, the first thing to do is look at your options. If you don’t have cash to pay your bills, consider working out a payment plan with your creditors.

Get on their good side by paying any interest that is due (but not yet late), and any fees, late fees or collection fees that are due but not yet charged. This could help them see you as reliable enough to extend more lenient terms when it comes time for another loan in the future (or who knows—maybe they’ll forget about this one altogether).

If you still can’t afford a loan payment after all of that, it may be time to contact a payday lender as an absolute last resort.

Use Your Tax Return To Pay Down Your Debt

  • Use your tax return to pay down your debt

The first thing you should do is use your tax return to pay down your debt. As a general rule, we recommend that you do this on the highest interest rate loan first (i.e., the one with the most expensive interest rate). This way, you’re able to save money in interest charges and payments and are able to get out of debt faster!

  • Get a loan from a friend or family member

If using your tax return doesn’t work for some reason, consider getting a loan from friends or family members at an interest rate that isn’t as high as payday loans but still gives them some income for helping you out. We recommend checking with them first before going anywhere else because they may be willing to lend money without charging any fees at all! You can also try asking around through social media if anyone has any extra cash lying around instead of taking out an expensive loan just yet.

  • Use A Credit Card To Pay Down Your Debt

If you can’t get a loan from friends or family members, try using your credit card to pay down your debt. This may be the only option left for some people who don’t want to take out an expensive loan just yet because they don’t have any other way of paying it back before their next payday comes around.

There are a lot of things you can do to keep from getting involved in a payday loan.

If you’re thinking about getting a payday loan, then there are some things you should know about them. First of all, if your friend asks for money and tells you that they will pay it back next week with their paycheck, don’t lend them any cash. This is what most people do by mistake when using payday loans because they think they’ll be able to pay it back after receiving their next paycheck. The problem is that these loans usually have very high interest rates attached to them which means that the amount due will keep growing every month until it becomes unbearable and/or impossible to pay off without taking out another loan or selling something valuable (like your car).

Instead of borrowing money from friends or family members who may not be able to afford giving out cash right now (and who would rather see other people succeed), ask for help from a professional financial advisor at www.ccdr.ca who specializes in helping people with debt problems like yours!

Budgeting During Inflation In Canada

Introduction

There are many reasons why inflation occurs. Food and fuel prices are often considered the biggest culprits, but the average consumer’s spending habits can play a big role as well. Inflation is inevitable and there’s no way to stop it, but that doesn’t mean you have to spend more money than you need to just because prices go up over time. It’s important to be prepared for inflation as best you can so that it doesn’t hurt your budget too much or even worse, put you into debt!

Being prepared

  • Being prepared: The most important thing you can do is to draw up a budget and plan for the future. As inflation creeps in, you want to make sure that your income keeps pace with it and doesn’t lag behind. This means planning ahead so that you can save more money when things are good, but also being flexible enough so that when things go awry (as they inevitably will), there’s still some cash flow left over each month.
  • Saving enough money: If your income is steady, then saving is easy—just set aside what’s left at the end of each month for savings or investments and keep doing it until it becomes habit! However, if your income varies from month-to-month or week-to-week (sometimes even day-to-day), then saving may be more difficult because sometimes there won’t be any money left over after covering expenses like rent/mortgage payments or groceries; this is where having an emergency fund comes in handy!

Look at your mortgage

If you have a fixed-rate mortgage, consider refinancing if rates drop. The longer the term of your mortgage, the better it is to refinance at lower rates. If you’re already in a variable rate, look into getting a fixed or capped rate that matches your current mortgage if rates drop.

Get ahead of things

Inflation is a tricky beast. It can sneak up on you without you even realizing it, and before you know it your budget is in shambles. It’s important to stay on top of inflation so that your financial situation doesn’t fall apart!

  • Look at your budget: If you’ve done a good job of tracking where your money goes each month, then this may be a breeze for you. If not, we recommend using an app like Mint or Quicken to track expenses for at least two months to get a better idea of how much money comes in versus how much goes out. Once that’s complete, create categories where appropriate and try to come up with some creative solutions if there are any red flags (for example: “Eating Out” might be too high).
  • Look at other areas of spending: Are there any areas where we could cut back? Where are our priorities? Is there anything else we could eliminate completely? This step will likely take some time—and possibly some tears—but setting aside personal luxuries means that when inflation hits hard again next year (or sooner), we’ll still have enough saved up for those rainy days.*

Save on food

If you are looking to save on food, there are some easy ways that you can do this. The first option is to buy in bulk. This will allow you to get a lot of the same product at once and then store it for later use. It may also be more cost effective than buying smaller quantities throughout the month or week.

Another good way to save money is by looking for sales and coupons from various stores that sell similar products, particularly grocery stores and supermarkets. You can also look for cheaper alternatives like lower quality items or cheaper brands than what you normally buy as well as cheaper stores and meal options like eating out less often or cooking your meals at home instead of ordering out on nights when possible (which will save even more money).

Buy cheaper brands

There are many ways of lowering your grocery bill without sacrificing quality. Some options are as simple as buying generic brands, while others might require some planning and preparation. Here’s a list of tips to keep in mind when shopping for groceries:

  • Buy store brands instead of name-brand products
  • Buy in bulk when possible (e.g., at Costco)
  • Buy in season or on sale
  • Buy on Amazon (if you have a Prime membership)

Use coupons

Coupons are one of the easiest ways to save money on your groceries, and they’re also a great way to save money on other items you purchase. You can find coupons in newspapers, magazines, online and in stores. Coupons typically allow you to buy an item at a lower cost than normal price; however some coupons may even include free products!

The following are some examples of how you can use coupons:

  • Use them as currency for trading within your community (e.g., swapping clothes with friends).
  • Give them away as gifts for birthdays or holidays.* Don’t throw away expired ones! They still have value!

Cut back on eating out

Eating out is a luxury, so you should cut back on it when times are tough. The best way to do this is to eat at home more often and only eat out less often. If you do decide to go out, try eating at cheaper restaurants or even fast food chains like McDonald’s or Burger King. You’ll save yourself some money and get some good value for your buck.

Buy generic brands

  • Generic brands are usually cheaper
  • Generic brands are usually the same quality as brand names
  • Generic brands are usually available at the same stores as brand names

Take stock of your bills

To start, list all of the monthly bills you pay. These include things like rent or mortgage payments, car insurance and gas costs, grocery bills and utility bills (water/electricity). Next, figure out how much money you spend on each bill per month, per year and even per week/day/hour if possible.

Now that you have a clear picture of how much money is going out every month, we can begin to identify potential areas where we can cut back on spending.

Reconsider utilities

One of the first things you should do as a budgeter is to look at your utility bills. Look for anything that can be done to lower your cost, whether it’s changing providers, using less electricity or water, or switching from heating oil to natural gas. If you find yourself driving long distances every day for work and need to cut back on gas usage, consider taking public transportation instead of driving yourself (or maybe even getting rid of one car altogether).

Inflation is inevitable, but that doesn’t mean you can’t plan ahead.

Inflation is a natural process that occurs when the supply of money grows faster than the demand for it. When this happens, prices rise and the purchasing power of your money decreases.

Inflation does not happen overnight; it takes time for inflation to increase from 0% to 2%. And it’s important to remember that inflation is not just something that affects you and me as consumers in our day-to-day lives, but also affects businesses who need to adjust their prices accordingly in order to stay competitive in the market place.

However—just because we know what causes inflation doesn’t mean we have control over how much it will occur or when! Inflation can be very unpredictable so we all have a role here: stay informed about current economic news so you can plan ahead accordingly!

Conclusion

With inflation being a fact of life, it’s important that you take steps to plan for it. By being prepared and looking at ways in which you can cut back on spending when prices go up, you can avoid getting caught off guard when your grocery bill suddenly goes up or electricity rates increase without warning.

Introduction

As a parent, you want to provide your child with the best of everything. But that can be hard on the budget! I get it: You’re tired and busy, and you don’t really have time to do much other than take care of your little ones. But if you want to save money when you have kids, these tips will help.

Be Honest About Your Finances

You and your partner need to sit down and have a conversation about your finances. Be honest with each other about what you can afford, what you spend, your financial goals and priorities, as well as your current financial situation.

If one of the two of you has more debt than the other or makes more money than the other, that doesn’t mean that person should be responsible for everything—you both have a say in how much debt is taken on or how much money is spent on baby-related expenses.

Make a Baby Budget

You’ll need to determine how much money you can afford to spend on your new baby. First and foremost, write down all of the expenses that you have already incurred for the birth of your child. These might include hospital costs, doctor’s fees, items purchased at Babies R Us (or Target or Walmart), and any other related items that you have already spent money on.

Next, make a list of expected expenses for the coming weeks or months as well as some possible unexpected expenses that may come up during this time period. The latter could include additional tests or treatment from doctors not covered by insurance such as physical therapy sessions if there are developmental delays; prescriptions for medications; additional appointments with specialists like neurologists or speech therapists; toys that aren’t included in your “starter kit”; gifts from relatives & friends who want to shower them with things…

After making these two lists, calculate how much money you still need left over in order to save up enough funds so that whatever happens will not cause financial stress later on down when bills start rolling in faster than ever before! This is where being organized helps immensely because now at least we know what needs doing first: planning out our future finances so they’re no longer just abstract concepts but rather tangible goals which can be accomplished through careful budgeting decisions made every day.”

Create a Savings Plan

To create a savings plan you will need to:

  • Set a savings goal. This is the amount that you want to save in total, over time. It could be as small as $500 or as high as $5 million.
  • Set up a savings plan for how you are going to achieve your goal. Set aside enough money each month so that by the end of it all, your savings account will be full and ready for whatever comes next (whether it’s college tuition payments or retirement).
  • Decide on how long it will take before reaching your goal—anywhere from one year to 40 years!

Take Advantage of Freebies

As you are probably aware, there are a number of freebies available to new parents. If you don’t know where to look, here are some tips:

  • Take advantage of freebies in your area. There are likely several organizations in your community that offer vouchers or discounts for new parents. For example, the March of Dimes has partnered with companies like Babies R Us and Toys R Us to provide exclusive discounts on select products.
  • Take advantage of freebies for families with kids aged zero through six years old. These deals come from corporations such as Waffle House and McDonald’s who want nothing more than for your children—and you—to have a happy meal experience!
  • Look out for other deals on items like clothing or diapers too! Your baby doesn’t need designer clothes but if someone gives them away at no cost then why not take advantage?

Save money when you have kids!

  • Buy clothes second-hand. It’s a great way to save money, and you can find some really cute stuff!
  • Buy at the right time of year. Winter clothes are usually cheaper during autumn, while summer clothing is cheaper in spring.
  • Buy in bulk if it’s something you use frequently (like baby food), but only if you need a lot of it. Buying big tubs of baby food will save you money, but they also take up space that could be used for more important things like more diapers or bottles (or maybe just more room for yourself).

Conclusion

So, now you know some of the best money saving tips for new parents. The key is to get started right away and make a plan that works for your family. If you have any questions about how to save money with kids, feel free to contact us!