How To Get Your Kids To Start Saving
Though there may not be riots in the streets of Canada and the government is telling us we’re doing much better than the other countries of the world, this doesn’t mean that Canada is in great shape. Canada’s national debt is mounting with time, and reports suggest that $100,000 of debt is owed by the Canadian households in the year 2011. There has been a staggering increase in the debt level by 79% since 1991. We’re turning to professional debt help companies to get help in managing our debt burden.
A few personal finance experts have suggested a few ‘Do It Yourself’ steps that can ensure total debt freedom within a reasonable amount of time. Check out some of the tips below that can help you regain control of your debt levels.
1. Stop using the plastics: As the interest rates on the credit cards are outrageously high, it always advised that one must say a big ‘NO’ to credit cards. Using 3 credit cards at a time may be useful but you must make sure to handle your cards properly so that you do not unnecessarily accrue penalty fees and late fees. Instead of using your multiple credit cards, you can use cash so that you stop purchasing things as soon as you run out. Using your cards may mean digging yourself further in debt.
2. Craft a frugal budget: The surging level of national debt in Canada is mainly due to the increasingly large number of people who avoid following a budget. Budget is the best financial tool that can assure total financial freedom, if followed. Craft a budget that will eliminate all kinds of unnecessary expenses that you can do without. Distinguish between wants and needs while making the budget so that you don’t end up buying the unwanted things first instead of the necessities. Evaluate the budget at the end of the month so that you can make required changes when necessary.
3. Save at least 10% of what you make in a month: According to most industry experts, there is no substitute to saving money. If you want to secure financial freedom as soon as possible, you must save money. Saving 10% of whatever you make in a month is a prerequisite for obtaining a debt free life. Get acquainted with the banking services and open a savings account. Tie the savings account to your checking account so that the money is automatically transferred to your savings account.
Guest post by: Neil Williams, a financial consultant and writer. Follow him on Twitter for regular updates.
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