1.877.754.2004 Request A Quote
Google Play Ap Store
Apple AP Store

Dominion Lending Centres

Dominion Lending Centres Forest City Funding
FSCO# 10671

Mortgage Broker Ontario

  • About
    • Benefits of Our Mortgage Services
    • Mission Statement
    • About Us
    • The Owner
    • Testimonials
    • Awards & Recognitions
    • In the Community
  • Services
        • Condominium Corporation Loan
        • Snowbird Financing
        • Mortgage Life Insurance
        • Mortgages
          • Purchasing a Home
          • Refinance / Consolidate
          • Switch / Transfer
          • Home Equity
          • Reverse Mortgage
          • Spousal Buyout
          • Mortgage Renewal
          • Commercial Mortgage
        • Leasing
          • Using a Leasing Professional
          • What we Lease
          • Leasing Vendor Programs
        • Merchant Cash Advance
          • Merchant Advance Program
          • FAQ – Merchant Cash Advance
  • Calculator
  • Rates
  • Apply Online
  • Blog
  • Contact
  • About
    • Benefits of Our Mortgage Services
    • Mission Statement
    • About Us
    • The Owner
    • Testimonials
    • Awards & Recognitions
    • In the Community
  • Services
        • Condominium Corporation Loan
        • Snowbird Financing
        • Mortgage Life Insurance
        • Mortgages
          • Purchasing a Home
          • Refinance / Consolidate
          • Switch / Transfer
          • Home Equity
          • Reverse Mortgage
          • Spousal Buyout
          • Mortgage Renewal
          • Commercial Mortgage
        • Leasing
          • Using a Leasing Professional
          • What we Lease
          • Leasing Vendor Programs
        • Merchant Cash Advance
          • Merchant Advance Program
          • FAQ – Merchant Cash Advance
  • Calculator
  • Rates
  • Apply Online
  • Blog
  • Contact
You are here: Home / Blog / Budgeting for the Year Ahead

Budgeting for the Year Ahead

December 5, 2022 By Stan Savov

How to budget for the year ahead?

 
With the recent inflation and rising prices occurring across the country, it is time to take control of your finances. One of the quickest ways to understand where your money is going and where you can make changes is to create a monthly budget.
 

This will help you get a snapshot of your income compared to your spending, and provides an avenue to review all of your outgoing costs and helps you make changes to increase your monthly cashflow – or just feel less stressed!

Step 1: Calculate Your Income
The very first step to creating any budget is determining your income – knowing exactly how much money you bring in is important to understanding what you have available to spend. Remember to focus on NET INCOME versus gross salary, as budgeting for more than you can afford will lead to overspending.

Step 2: Track Your Spending
Once you have determined your income, you will want to take a look at your spending. Reviewing and categorizing all your monthly bills can help you breakdown exactly where your money goes and make some priorities to mark where changes can be made. To start, first list out your fixed expenses – these are things like car payments, loans, rent or mortgage costs that do not change on a monthly basis. Next, you will want to take a look at your variable expenses – things like groceries, gas, entertainment, etc. and determine your average spend. This is typically the area where people are able to cut back.

Step 3: Set Realistic Goals
Realistic goals are vital for long-lasting financial health. It is important to determine what you cannot live without and where you can cut costs or scale back on spending. Ideally, when it comes to your monthly budget, you want to consider the 50/30/20 rule, which applies the following:

  • 50% of your spending is for NEEDS such as rent or mortgage payments, car payments, utilities and groceries
  • 30% of your income goes to WANTS such as shopping, vacations, streaming services, etc.
  • 20% of your income goes to SAVINGS OR DEBT such as emergency funds, retirement, child’s education and/or credit card payments

Step 4: Make a Plan
Once you have your goals set, you can now make a plan to tackle your financial position and ensure a healthy cashflow each month. For some, setting realistic spending limits for each category works well. For others, taking a look at the importance of their expenses and re-prioritizing can free up funds.

Step 5: Adjust Your Spending
Now that you have determined how much money you bring in per month and what you spend it on, you can take a look at adjusting your spending to ensure you remain on budget. Taking a realistic look at your wants is a great place to cut out frivolous spending beyond a reasonable amount. This is also a great time to review your fixed expenses. Perhaps you can save money by getting a better interest rate on your mortgage or changing the payment schedule for your loan. Be sure to connect with a me before making any changes to your mortgage!

Step 6: Stay on Track
Tracking your budget on a monthly basis is important to catch any changes in your spending habits. As well, it is a good idea to conduct an annual review and take into account any increase in expenses or wages that may require shifts in your overall plan.

The Government of Canada has an online budget planner tool available as well if you need further assistance! You can find it here.

Remember: A healthy budget is key to financial freedom and comfort.

More related readings you might like:

  • How to Calculate Mortgage Trigger Points?
  • Adapting Your Finances to Inflation
  • Housing Market Predictions?
  • Time to Check-In with your Mortgage!
  • Dreaming of Your Very Own Vacation Home
  • 2023 Financial Resolutions
  • Winterizing Your Home

Filed Under: Blog

Free Mortgage Review

Find out how much your home is worth.





    Contact a Mortgage Agent

    Oakville, Mississauga & Burlington: 905.491.6911

    Toronto & GTA:
    416.915.3155

    Hamilton & Vaughan:
    1.877.754.2004

    Naples & Miami:
    Toll Free: 1.877.239.1588
    Direct Line: 239.488.3380

    Fax:
    1.877.772.5337
    239.488.3379

    Toll-Free:
    1.877.754.2004

    Email:
    mortgageadmin@dominionlending.ca

    Request a Call Back

    Let us call you back when it's convenient for you!

      Google Play Ap Store
      Apple AP Store
      Cameron Mackie -Mortgage Broker Licence #M08008827
      Independently owned and operated ©Copyright 2023
      Dominion Lending Centres Forest City Funding - Broker Licence #10671
      Sitemap
      Request a Quote

      No Obligation Quote

        Canadian Buyer's Guide to Florida Real Estate

        Welcome

        In order to receive your free book we require some details from you.

        We do not ask for your phone number, and we will never attempt to contact you by phone, unless you ask us to. We will never sell or share, your information with third parties.

        Please forward our website link to your family and friends. They can download The Book for free as well. However, you agree, in order to receive The Book, to not copy, or forward an electronic copy of the Book, once you have downloaded it, as this will not count towards our official download statistics.

        IF YOU FIND THE INFORMATION CONTAINED IN THE BOOK HELPFUL AND INFORMATIVE, PLEASE CONSIDER USING OUR BROKERAGE SERVICES.

        Thank you and happy reading.

        Due to new anti-spam laws, you must check the I AGREE BOX, that signifies your consent to receiving The Book, and that you consent, to receive our Newsletter. You can unsubscribe from the Newsletter at any time. Please complete the form below to download the book.

          I agree to the terms above

          Certified to provide the best advice to Canadian Snowbirds

          Our brokerage is Certified to provide the best advice to Canadian Snowbirds, we provide guidance on finances, immigration, legal, tax and accounting issues that arise as a Snowbird. Additional to our expert advice, we also have a strong network of professionals to eliminate any stress common to owning property in the U.S.

          Thank you for reaching out to us, we will be in contact very soon. Have a great day!