11 MONEY MANAGEMENT GUIDELINES
For the future (retirement, children’s education, etc.), major purchases (house, cars, vacations).
- Set Financial Goals
Set short, mid and long term financial goals and how to achieve them. The how is the most important part.
- Know Your Financial Situation
Determine your monthly living expenses, irregular expenses and monthly debt service payments. Make a budget
- Keep A Record Of Daily Expenses
Be aware of where your money is going identifying areas where spending adjustments need to be made.
- Develop a Realistic Budget
Follow your budget as closely as possible.
Evaluate your spending month to month.
Compare actual expenses with planned expenses.
Adjust budgets as required.
- Don't Allow Expenses to Exceed Income
Avoid paying only the minimum on your credit cards.
Don't charge more every month than you are able to repay to your creditors.
Try to keep a cero balance in your credit cards
Save 15% of your net income for yourself.
Accumulate 3 to 6 months net salary for the emergency fund.
Save for irregular expenses, such as car and home maintenance, gifts, Christmas, etc.
Take advantage of current income tax rules which allow for tax-deductible savings for retirement plans (RRSP, TFSA).
- Pay Your Bills On Time
Maintain a good credit rating.
If you are unable to pay your bills as agreed, contact your creditors and explain your situation, keep them advised.
Contact Morataya & Associates for professional advice.
- Understand the Difference between Your Needs and Your Wants
Identify what your needs are.
Money should be spent for wants only after needs and savings have been met. A leather jacket is not a need
- Use Credit Wisely
Use credit for safety, convenience and planned purchases.
Determine the total you can comfortably afford to purchase on credit before you buy.
Don't allow your credit payments to exceed 20% of your net income.
Do not borrow from one creditor to pay another.
- Get Financial protection
Make sure you have enough insurance protection for potential financial losses. You don’t want to find yourself in a financial crisis.
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A friend of mine heard Mario Morataya on the radio say: "regain your peace of mind", so I decided to make an appointment with him and I did the right thing. He gave me the harmony I needed and that I was desperately looking for.