Overview:
When it comes to managing personal or family finances, everyone has very different needs and wants, and there are a million different options online for you to consider. Here are some of my favourites, and hopefully you find one that provides you some support in your budgeting process.
Online Resources:
https://www.oprah.com/money/debt-relief-from-oprahs-debt-diet-action-plan
Templates: It can be useful to create an annual or monthly budget template and then break them down into budgets by paycheques.
First you will want to figure out what you want your pie chart to look like based on your current situation and future goals. Here is an example:
Next, list out your expenses and categorize them to see how they fit into your pie chart.
| Mortgage/Rent Home Repairs Property Taxes House Insurance Water Sewage Hydro Heat | Housing |
| Gas Parking Public Transportation Car Insurance Repairs & Maintenance Car Payments Recreational Vehicles (ATV, boat, RV, etc) Storage Fees | Transportation |
| Emergencies Travel Holidays Retirement Investments Kid’s Educational | Savings |
| Cable & Internet Pet Care & Food Groceries Daycare Clothing Fitness Kid’s Activities Entertainment Subscription Apps/Memberships Cell Phones Gifts Health Supplements (Medical/Vitamins, etc.) House Cleaners Personal Spending Special Occasions | Living |
| Credit Cards Lines of Credit Student Loans Personal Loans | Debt |
Then look at your income streams to understand what you have coming in and when.
| Salary Take-Home (bi-weekly payment #1) | $4,000 |
| Salary Take-Home (bi-weekly payment #2) | $4,000 |
| Government Payments (Child Tax Benefit, CPP, etc.) | $500 |
| Additional Income Source | $500 |
Next, you’ll want to get a clear understanding of your monthly/annual expense amounts and how they fit into your income streams.
| Mortgage Payment (bi-weekly #1) | $1,000 |
| Mortgage Payment (bi-weekly #2) | $1,000 |
| Home Repairs | $100 |
| Property Taxes | $300 |
| Home Insurance | $150 |
| Water | $100 |
| Sewage | $100 |
| Hydro | $200 |
| Heat | $200 |
| Gas | $100 |
| Parking | $100 |
| Public Transportation | $100 |
| Vehicle Insurances | $150 |
| Repairs & Maintenance | $100 |
| Car Payment (bi-weekly #1) | $100 |
| Car Payment (bi-weekly #2) | $100 |
| Recreational Vehicles | $100 |
| Emergency Savings | $300 |
| Holiday Savings | $200 |
| Travel Savings | $100 |
| Retirement Savings | $200 |
| Investments | $100 |
| Kid’s Educational Savings | $200 |
| Personal Spending (all family members) | $400 |
| Entertainment | $300 |
| Cable & Internet | $150 |
| Cell Phones | $250 |
| Groceries | $500 |
| Daycare | $500 |
| Pets | $100 |
| Fitness | $100 |
| Clothing | $100 |
| Apps & Memberships | $100 |
| Gifts | $100 |
| Credit Cards | $200 |
| Line of Credits | $100 |
| Loans | $100 |
You can now start comparing how your expenses line up with your pie chart goals to understand where you need to either adjust your budget or adjust your expectations.
This example shows a monthly income of $9,000, with expenses totalling $8,000 which means you can then either adjust your expense amounts or adjust your pie chart expectations. It’s important to understand which area these expenses fall under so that you can accurately plan to meet your percentage goals in each category which should match your long-term goals.
Once you have completed your review of your income versus expenses and you’ve tied it into your long-term category goals, you can create a monthly budget based on the timing of the income and expense transactions.
Additional Tips:
- Create an annual budget so you understand when and where you have large ticket items to account for. This allows you to spread them out over the year.
- Open secondary bank accounts under your main one and use it for bills, fun money, savings accounts, etc. It’s easier to organize and move money around when it’s all easily accessible.
- Meet with a financial advisor once a year to set your long-term savings goals, retirement plans, etc. and then adjust your pie chart to match your current needs and goals.
