Moneymart

You do not need to be a prodigy in mathematics and economics to create an effective budget. It will take some time, motivation, effort, and monitoring, but once you have created your budget and gained some peace of mind, you will probably find it worthwhile.

Follow these steps to create an effective budget:

aec Use a spreadsheet. It need not be complicated and there are some good examples available online. Try to visit moneymart.ca, budgeting for a free download of their worksheet.

aec Get your documents together. Take time to find pay stubs, bank statements, utility bills, car insurance bills and tenant, and any other paperwork that can help you determine your income and expenses.

aec Enter your income and expenses. Refer to the documentation you've collected and enter your monthly income to your budget.

aec Adjust your spending, if necessary. Total your income and expenses - hopefully, you'll see that your income is higher. If so, decide what to do with your extra income, whether to put more money into savings or pay off a credit card. If your expenses are higher, to decide what expenses you can reduce if not eliminate.

aec If you are always on the side of the inability to control your spending, try to use a prepaid credit card such as that offered by Money Mart. Because it is prepaid, it is automatically included in the spending limit set by how much money is loaded onto the account. It'sa great way to control and reduce your consumption habits.

Review your budget each month

Once you've completed the steps above, you have created your budget. However, your work is not quite finished. Revisit your budget every month to see if you stayed on track or if you need to make other adjustments.

More information about this topic is available online at www.moneymart.ca .