With the uncertainty that we are currently facing, a lot of people are wondering if they should defer some of their monthly payments. The very best way to figure that out is to know exactly where your money will be coming from in the next few months and where it will be going. 
 
How can you achieve this? 
 
The answer is simple: make a budget.  Knowing exactly where every dollar will be going BEFORE the month begins will put you in control of every dollar that you will earn or spend and will also alleviate some of the financial stress you might be experiencing.

We have found that a good way to start is by looking at the last 6 months of expenses to figure out what the next 6 months might look like.
 
Step 1: Write down your expected total income for the next 6 months
Do it for each and every month. This includes your after-tax income from all sources of income (employment income, EI benefits, spousal support, investment income, etc.)
 
Step 2: List all your expenses for the last 6 months and categorize them
Most banks offer online tools to quickly download your bank statements into an Excel spreadsheet. Let us know if you need help with this!
 
Step 3: Transfer your total monthly spendings into this year’s budget spreadsheet
Make any required adjustments to your income and expenses going forward. We are happy to email you our cash flow/budget templates if it helps.  Just email us at philip@philiphollett.com to get your copy.

Step 4: Split your expenses between FIXED or VARIABLE
This will make it easier for you to know which expenses are a must and which ones might need to be adjusted.
 
Step 5: Subtract expenses from income
If you have a surplus, you’re in good shape and need to put the extra money under SAVINGS to achieve a ZERO balance. If you’re short, you need to decide where you can make some changes in your variable expenses. If you still can’t get to ZERO, you might want to consider making arrangements with your creditors to defer some of your monthly payments.
 
TIPS:
-           If there are things you will need to spend money on less routinely, you should set money aside for those monthly instead of trying to figure out how you’re going to come up with a lump sum within a single month.
 
-           Whenever you need to accumulate money for a specific buy, it might be easier to have a separate savings account for that money. When it comes time to use the money, you transfer it back to your regular account to pay the bill.
 
If you think you won’t be able to make your monthly payments over the next 6 months, it is important that you take immediate action.  Contact your bank or service providers before you miss a payment.

We're here to help, don't hesitate to reach out to us.