Budgeting, like dieting, doesn’t work because folks don’t embed it in their lifestyles. It’s a chore a finance person recommends. Can we achieve budgeting’s goals a better way? People save leftovers after spending. Is there another path? Take Warren Buffett’s advice, “Do not save what is left after spending; instead, spend what is left after saving.” The […]
Why are Canadians acquiring so much debt and ignoring lessons from the USA’s sub prime debacle? Cheap, easy money is addictive! Besides, history would suggest that when housing prices fall and interest rates rise many people will have no problem using the victim card and blaming financial institutions, businesses, the one percent … everyone, but themselves. Still, there is hope to avoid the inevitable meltdown.
Do you know your spending profile? If you don’t, probably you haven’t seen funds trickling out. Almost everyone I know who tracked their expenses for at least a month found they could change spending habits and reduce monthly outlays — some by more than 20%.
Consumers continue to fall deeper in debt, while merchants contrive clever schemes to get them spending more. Without a solid offensive plan against merchants, consumers will fall prey to stores’ conniving tricks. Here are three things you can do to defeat merchants…
After surrendering your financial debt burden to the Lord and developing a zero-based budget, you are ready to start living in that budget. Envelope budgeting is your ideal complementary tool to prevent more debt.
People drift gradually in debt by working without a budget and ignoring small expenses. If you decide to change your behaviour that cause several small expenses, you will spend less, and your financial position will improve.
Albeit you cannot predict the result, the immense learning you get during these three budget phases, should convict you to work with a budget: preparation, probabilities, and the execution. The issue is not whether you will get the correct result by working with a budget. It is defining realistic assumptions and goals in advance, and adjusting your behavior as you progress to them.
Like the rest of society, Christians continue to accumulate debt to buy stuff to satisfy various wants. The Bible provides key passages that each of us need to heed. Daily we should recall Luke 12:15 (NIV).
Two of my favourite quotes are from Einstein: “Insanity is doing the same thing over and over again and expecting different results.” And, “We can’t solve problems by using the same kind of thinking we used when we created them.” Canadian and US Governments are bent on proving Einstein wrong! Prolonged low interest rates fueled unprecedented greed by corporate executives and individuals, feeding off each other. Executives gambled with shareholders’ funds knowing there was no downside for them, but phenomenal upside.