Margaret Johnson

Credit Solutions

A column by Margaret H. Johnson. As featured on MyTelus.com and Shaw: Finance.

Margaret H. Johnson ACE, RQIC, has over 35 years of financial industry experience in both lending and collecting. She is an Accredited Insolvency Counsellor, Registered by Industry Canada.

 

Your Financial Health E-mail
Can you afford to live the life you really want?

Ignorance is not bliss when it comes to your money. If you struggle to make ends meet, have trouble saving money, or feel burdened with unwanted debt. It is time to do something about it.

Lets take a little test: Answer the following questions truthfully –

  1. I balance my bank statement every month
  2. I always pay my bills on time
  3. I am debt free or at least I have a debt free target date
  4. I save some money every month – (and it stays in the savings account)
  5. I have a plan to create my financial future
  6. I know where my money goes –(all my money)
  7. I live within my means – (my budget is balanced)
  8. I don’t worry about money (I think everyone does)
  9. I always carry cash
  10. I share my money
  11. I pay my credit cards in full each month (less than 50% of people do)
  12. I pay all my taxes on time – (personal and business)
  13. I have set financial goals – (in writing and I know what they are)
  14. I have a bookkeeping system that takes me less than 20 minutes a month to complete
So how did you do? - Eighty percent of the people that take this little test the first time score less than six. Fiscal Fitness

Once you know how to improve your financial health you can take one simple action that can put you on the road to fiscal fitness. Most of us never received any basic training in the skill of handling money. We go from being kids or students with no money to having a job and trying to balance our own chequebook. The way we handle our money is for the most part based on how our parents handled their money, and chances are they did not get much training either.

The unsecured national consumer debt load is now at an all time high $210 BILLION this figure does not include mortgages.

Owing money can take a toll on your emotional health. Especially if that debt gets out of control or you get behind with your payments.

Hopelessness

Many of my clients tell me about feelings of anxiety and hopelessness about their ability to improve their financial lives. The most important thing to understand about debt is that you do have the ability to control it. You are the only one that does.

Start by creating a budget – where does your money go? Start tracking your spending.

PDFGet your free personal design budget sheet

The secret to creating financial health is to take charge of the money you have now. If you are in debt, see a credit counsellor and devise a plan to become debt free.

Financial Freedom

  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 Service Inc. for 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.
If you are in debt, restoring your financial health begins with a change in attitude and a clearly thought out plan. Create your plan today.
Dealing with your money should not be stressful it should be fun. Yes, Fun!
Who is in charge you or your debts? Answer You!

Do you have a story that you would like to share about your experience with a debt collector? Email me – This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

If you are experiencing financial difficulties do not wait. Speak to a professional today. 

Margaret H. Johnson ACE. RQIC is president of Solutions Credit Counselling Service Inc. and Women and Money Inc. She can be reached by e-mail at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it  
Or call toll-free in Canada – 1-877-588-9491 
Phone: (604) 588-9491 Fax: (604) 588-9007 

© Solutions Credit Counselling Service Inc.

 
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