Budget Basics Overview – How to Set Up a Budget You Can Live With

David Sklar & Associates – Toronto Consumer Proposal and Bankruptcy Trustees,
Share the Lessons of Successful Budgeting

One of the best tools that anyone can have in their goal to be debt free is a budget.

People involved in the Consumer Proposal and Bankruptcy processes are required to follow a budget. In the case of Bankruptcy, it involves a strict, formal budget that has to be submitted monthly to the Trustee’s office for review. For this series we will be working with a less formal budget, one that is customizable and doable for everyone!

While most people think of being on a budget like being on a diet (an unpleasant experience that seldom works and often leaves a feeling of failure) during the Consumer Proposal and Bankruptcy processes – many of our clients learn how to successfully use a budget. These are valuable lessons that can be used by everyone who wants to manage their debt and build their family’s financial security.

It starts (like most successful ventures) by closely following a few, simple steps:

Step 1 > Clearly identify your starting financial position

Step 2 > Clearly identify your financial goals

Step 3 > Set up a workable budget to get from where you are to where you want to be

Step 4 > Consistently review once a month to monitor progress and make required changes

To help you in the creation of your budget – we have set up instructions and examples for each of the required steps – and we recommend you review each before you begin your budgeting journey.

One of the most financially successful people we know is a lovely senior (she is 75+ years old) who each month sits down and reviews her budget and her financial goals. Over the years her and her husband built up a substantial fortune based on their middle-income jobs, buying and directly managing real estate rentals, making prudent non-risk investments, and most importantly - a dedication to thrift. In addition to raising a wonderful family; they traveled extensively in Europe and North America; and earned a huge network of true friends. Now a widow, the lessons learned in her lifetime have stuck, and this wise woman continues to live in half of a duplex (she rents out the other half which covers all of her living expenses); continues to travel and enjoy life; and continues to save money towards her goals every month.

This is the first of a five part series on setting up a workable budget. The entire series can be found here:

Budget Basics – How to Set Up a Budget You Can Live With - An Overview

Budget Basics – Clearly Identify Your Starting Financial Position - Step 1

Budget Basics – Clearly Identify Your Financial Goals - Step 2

Budget Basics – Setting Up Your Budget - Step 3

Budget Basics – Follow Through or Rinse and Repeat - Step 4