Budgeting makes cents

Pennies aren’t around anymore, but the saying ‘a penny saved is a penny earned’ is still relevant. And just like it takes many cents to add up to a dollar, there are lots of little things you need to decide when you begin to budget.

Budgeting is more than saving or paying down debt. It’s about considering your needs, wants, and your personal feelings about to how to achieve those. Whether you’re on your own or have a partner, you’ll need to find a budget strategy that works for everyone.

Let’s talk about Jane and Sam, a married couple working on their budget. Sam wants to pay off debt and has no interest in saving until then. Jane has always been a saver and wants to continue saving money even though they have debts. Both think they are right, and neither will compromise.

After talking to a retirement consultant, Sam and Jane realize they can find a middle ground that is right for them. Acknowledging their preferences is as important as alleviating financial stress. Financial wellness is so much more than dollars and cents and leads to better overall well-being. Folks who take their mental wellness into account when making financial decisions are happier as a result.

Jane and Sam also agree to review their budget plan regularly, to make sure it’s still working for them as life changes.

Here are some of the things you should think about while budgeting:

• what are two to three things you cannot compromise on;
• what are you willing to sacrifice to build future savings;
• what are your big debts; and
• what are your ongoing small expenses?

For help saving for your financial goals, start with our Planning Worksheet! And remember, periodically checking in on your debt will show it slowly going down!

Like Jane and Sam, you can meet with a Retirement Investment Consultant (RIC) and discuss your needs and wants for your financial future. You can contact one of our RICs at 306-787-3170 or email ric@plannera.ca