On a scale of 1 to 10, what is your level of stress regarding your current financial situation?
(0 being no stress and 10 an unbearable level)
On a scale of 1 to 10, what is your level of financial literacy?
(0 being knowing nothing at all about personal finances and 10 having nothing more to learn)
Regardless of your answers, our advice remains the same: the more you increase and use your knowledge to better manage your budget, the more you will see your financial stress decrease! We believe that a greater level of skills in financial literacy, and particularly your ability to plan and manage your money, is vital to a better quality of life… Why? “Because life is much more than just about money…”
… what comes to mind? Do the following test to find out about your tendencies. A negative attitude means that your budgeting experience won’t last long. However, a positive attitude means that you will be able to enjoy life a lot more… within your means!
If you believe that… (-)
If you tell yourself that… (+)
- “It’s boring…“
- “You have to be good with numbers… “
- “It’s going to limit the things I can do…“
- “I don’t earn enough money…”
- “I’m afraid of knowing where my money is going or of feeling guilty…“
- “I’m afraid it will discourage me even more…“
- “I’ll have to stop going out, treating myself…“
- “It takes too much time…“
- I’ll have to jot down all my expenses almost to the penny…“
- “My spouse won’t get involved…“
- “My spouse and I are already fighting about money…“
- “I don’t have time…“
- “I have already tried it and it doesn’t work…“
- “I’ve never done it and things are going well, we live well…“
- “I don’t want to see my reality; I’m afraid of seeing the actual numbers…“
- A budget can improve my quality of life
- A budget is much more than numbers
- I will spend where it is worth it for me
- A budget helps me to optimize my money
- With a budget, I will accept the consequences of my choices
- I will see the light at the end of the tunnel
- I will treat myself… within my means
- My budget will be simple and easy to manage
- No need to jot down everything in a budget
- A budget can be managed by taking into account each person’s strengths and interests
- A budget can be an opportunity to talk about what is important to each person
- Following a budget is a done once a month
- I will create a budget that works for me
- A budget can improve my quality of life, regardless of my situation
- A budget allows me to face reality before it hits me
|More minuses (-) than plusses (+)?
You are now aware of what prevents you from creating a budget! It is time to start seeing the positive side of things (plus column) and to recognize how a budget can improve your quality of life!
|More plusses (+) than minuses (-)?
You believe in the benefits that a budget can bring to your life! It is time to get familiar with basic tools to help you establish sound budget planning and management!
Identify situations that best apply to your financial situation.
Credit and debts
- I need my credit cards to reach my next cheque
- My debts are increasing rather than dropping
- I have other debts (line of credit, loans, taxes, etc.)
- At the end of each month, I pay the balance of my cards
- I have no debt (loan, line of credit, etc.)
- I am in the process of progressively reducing my debt level
- I am late in paying some of my recurring bills (rent, electricity, heat, telephone, cable, etc.)
- I am cutting down on groceries to pay my bills
- I am facing service interruptions because of delays in paying my bills
- I am up to date in rent, electricity, heat and telephone
- Once my bills are paid, I have enough left for my other basic expenses
- I have no problem in paying my bills
- I live from paycheque to paycheque and the end of the month is difficult
- I am not clear about where my money goes and I can’t see my situation improving
- I have to borrow to make ends meet
- I plan a balanced budget that I keep up to date if my situation changes
- I manage my budget by jotting down my monthly expenses
- I have savings in case of unexpected events
If your financial health is sound, congratulations! If not, the best time to change that is right now!
We live in a society dominated by consumerism that generates new “needs” ever more quickly… and the methods used to sell them to us are increasingly refined! For people to consume all of these goods, access to credit has never been easier! These days, indebtedness can take multiple forms: can you name them all? Try to do so before reading the following list…
How to protect oneself from these forms of indebtedness?
- Use only one credit card
- Always cover basic needs (rent, food, clothes, transportation) before any other expense
- Try to save rather than paying by credit card
Still, the best advice is to make a budget, because you will know what you can afford and as a result, you will be able to better plan and prioritize your expenses. You will become a well-informed consumer!
Forms of indebtedness
- Credit cards
- Lines of credit
- Bank loans
- Car loans
- RRSP loans
- Student loans
- Income taxes
- Finance companies
- Payday loaners
- Overdraft protections
- Arrears (rent, electricity, heat, telephone, cable, etc.)
- Services (mechanic, towing, dentist, lawyer)
- Friends, family, employer
- Financing “Buy now, pay later”