Oftentimes, people dread the idea of creating a budget; and most put it off until it becomes absolutely necessary.
This is because many individuals are filled with apprehension at the thought of reviewing their bank accounts to track their spending habits; they’re simply afraid of what they’re going to uncover!
Contrary to these trepidatious feelings, this process is something to get excited about. It can actually be regarded as the first positive step you can take towards creating a healthier spending pattern—nurturing a more positive attitude about ‘money’—and building a better financial future.
When Jim and Carol first came to me, they were newly married with out-of-control spending habits that had them living paycheck to paycheck at the age of 30.
The moment we sat down to establish a budget for their lifestyle and long-term goals, I could see that they each had a decent income (just no savings to show for it).
Like their fear of the word ‘budget,’ their financial dreams were also very common; they wanted to pay off their debt, start saving, stop renting, get a mortgage, and establish a household pattern to accommodate one parent working, with the other staying at home to take care of their young children.
One of the most important things I do as an advisor is listen. After hearing more about their hopes and dreams, I was able to formulate a user-friendly budget that met their goals for the future (without negatively impacting their lifestyle, in the present).
The budget we formulated helped them establish organized spending habits for a financially stable life.
Today, Jim and Carol have eliminated over $30,000 in debt and are ready to put a large down payment on their first home.
If you feel like you’re ‘struggling’ with your finances, it’s important for you to know that the first (and biggest) hurdle is a simple attitude adjustment—and it all starts with transforming your fear of the word ‘budget’ to excitement over the prospect of getting started!
Article written by Lisa Ferry, Financial Advisor at Spire Advisors of Assante Capital Management Ltd., Orillia
*The case study mentioned in this article is based on an actual scenario but names and identifying details have been changed to protect the privacy of individuals. The case study is provided for illustrative purposes only to provide an example of our process and methodology. Past performance does not guarantee future results. The results portrayed in this case study are not representative of all of our clients’ experiences. Different types of investments involve varying degrees of risk, and actual results may vary materially than those portrayed herein. Therefore, it should not be assumed that the future results of any specific investment or investment strategy (including the investments and/or investment strategies recommended or undertaken in this article) will be profitable or equal the results portrayed herein. An individual’s experience may vary based on his or her individual circumstances and current/future market conditions, and there can be no assurance that any client will achieve similar results in comparable situations. The information contained herein should not be construed as personalized investment advice. Please contact us for additional information with respect to the strategies and/or investments described herein.
*Assante Capital Management Ltd. is a Member of the Canadian Investor Protection Fund and Investment Industry Regulatory Organization of Canada. This material is provided for general information and is subject to change without notice. Every effort has been made to compile this material from reliable sources however no warranty can be made as to its accuracy or completeness. Before acting on any of the above, please make sure to see a professional advisor for individual financial advice based on your personal circumstances.
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