My Budget Doesn't Balance: Where Do I Cut? 

The rising cost of living is putting major pressure on everyone. Some people’s usual expenses now exceed their budget. So, what can you do to get by without accumulating debt? Here are some tips.

1. Review your budget

First, review your budget from top to bottom. Your goal is to itemize expenses and income.

– List all your income on one side (salary, unemployment benefits, allowances, etc.).

– Then list all your expenses by category :

• Essential fixed expenses (food, mortgage or rent, electricity, gas and telephone bills, insurance, childcare costs, etc.)
• Non-essential expenses (going out to restaurants or the movies, entertainment, etc.)

Of course, you must cut non-essential expenses first. However, you can also trim non-fixed essential expenses (food, telecommunications and insurance, etc.).

2. Renegotiate your telecommunications and insurance contracts

It’s often worth calling your Internet, telephone and television providers to negotiate better discounts. The same goes for your insurance (car, home, life, etc.). Lastly, remember that you can cut back your online streaming services such as Netflix, Crave or Amazon Prime.

3. Reduce your grocery bill

A current reason for our rising expenses is the cost of groceries. Fortunately, there are a number of hacks to reduce it.

• Pack a daily lunch for the office so you don’t have eat out.
• Cook in large quantities and reuse leftovers in other recipes.
• Buy frozen rather than fresh fruit and vegetables.
• Check out weekly flyers and specials to compare store prices.
• Base your weekly menu on food specials.
• Use apps that offer cheap unsold food, such as FoodHero, Flashfood or Too Good To Go.
• Choose plant proteins over animal proteins: they’re much cheaper, taste just as good and are better for the planet!

4. Save money on gas

In addition to groceries, fuel is another cause of rising expenses.

• Avoid taking the car whenever possible.
• Never buy gas on the weekend.
• Choose public transportation and biking whenever you can.

5. Go for used rather than ne

• If you must make a purchase, go for used rather than new.
• Bring anything fixable to be repaired.
• Above all, resist compulsive buying. Before every purchase, ask yourself: Do I really need this?

6. Give preference to free activities

Whether for you or your children, do free activities during the week or weekend. With a short search, you’ll find amazing offerings. Museums, libraries, recreational centres and festivals provide free activities year-round. A good walk in the park or in an unfamiliar neighbourhood can also be very enjoyable!

7. Increase your income

• Hold a garage sale (the kids will love it!).
• Offer your services to neighbours who need them: you could cut their lawn or walk their dog.
• Find a side job to supplement your income many businesses and restaurants are desperately short of workers!

Have your debts piled up? Don’t hesitate to contact one of our licensed trustees. They will guide you each step of the way.