There are many ways of managing money; however, the first way is to understand how to handle money.
To manage finances effectively takes time and an effort that someone might not seek until money trouble begins.
From experience over the last ten years, I’ve found people who are struggling who have pushed budgeting down to the bottom of the list.
When the money and credit run out, that’s when everything gets put on the table.
For some, it’s too late, and for others, there is time to get you on the track to debt freedom.
Today, I‘m discussing only a sliver of the financial pie about handling money to earn the success you want.
It’s no fast fix; however, if we can do it, so can you.
The money management process will take you for a ride, and it may be bumpy, but it WILL be worth it.
Let the system of budgeting and handling your money work in your favour, so you own it and not someone else.
Processes Used To Handle Money Once It’s Gone
- Run out of money in the bank
- Little to No emergency savings
- Begin to sell anything around the house
- Take on a part-time job if the person is allowed or able to do so.
- Call a friend or family memeber for money help
- Tap into any investments such as an RRSP or TFSA
- Apply for a credit card
- Find more credit cards to apply for
- Max out the credit cards
- Seek balance transfers for credit cards to lower interest rates
- Pay back minimum balance on credit cards forever without a budget plan
- Creditor sends someone to serve you a letter of non-payment and what the next steps will be.
- Phone calls from third-party collection agencies trying to get money that you owe
- Needs money management skills help
I’m sure all of us can find something else to slide into the list above because it’s not easy becoming debt-free.
Learning how to handle money is a process you must follow to understand how your actions control debt.
Need Help Learning How To Handle Money
I don’t typically offer advice about managing money simply because it’s not my field of expertise from a University or College standpoint.
In other words, I don’t have a degree on my wall, but I have plenty of experience to back me up.
Some people may call me a finance expert just because we’re debt-free, and I’ll accept that.
I can share our experiences with similar situations and guide the readers of Canadian Budget Binder.
One of the most challenging tasks for someone to do is to take charge of a monthly budget, especially if they are against them.
The only sorrow you will have about your money is when you face bankruptcy or debt consolidation.
I’m guessing that’s when it hits you hard, and the creditors start to put the heat on you.
Handle Money Without A Windfall Approach
We don’t have to file for income tax because the government handles it.
When I moved here, I learned about income tax returns, especially how to file an income tax return.
We paid a professional nearly $90 each to complete our income tax return for years.
Looking back, it was so expensive however we didn’t qualify for the free tax clinics in our area.
It took me some time to learn how to handle money in Canada because it’s similar yet different from the U.K.
After researching income tax returns online at Canada.ca reading popular websites, I started by purchasing Turbo Tax Standard.
From there, I would follow the steps to complete our income tax returns, and we were happy.
Then I found a way to file our income tax return by using the free software provided by Revenue Canada.
NETFILE and EFILE Certified tax software (electronic filing) is where I’ve been filing our returns ever since.
Typically you’ll find that the cut-off date for personal income tax returns is by the end of April.
However, come income tax time, it amazes me how so many people know what they are getting back, if anything at all.
Those getting cash can’t wait to file, and others who owe money don’t file or wait until the cut-off date.
I see a difference between the two, but can you?
Finding the time and learning how to handle money is not on the radar but spending income tax return money on “Stuff” was not a problem.
When tax season comes around, people are either depressed or happy because they know they are getting some money back.
- Education about how to handle money (boring)
- Getting money to spend (happy)
Handle Money By Seeking Assistance
If you’re that person who struggles to handle money, there are plenty of ways you can find help.
Money, in simple terms, is easy to learn how to use, but the user is in control of how to handle money.
No one will tell you what you can do with your money because it revolves around your situation.
Seeking help from professional services about handling money is a great start.
This means you are ready to regain control that you let money have over you.
Where can you look for someone to teach you how to handle money?
That’s a good question, and I want to offer you some tips, so you don’t feel overwhelmed with the process.
Just know that every city and town comes with different money management services for those seeking help.
You may even need to take a short trip into the city to talk with someone to get you on track financially.
First and foremost, I suggest reading my 10 Step Budgeting Mini-Series to give you a basic understanding of budgets.
With-in the 10 Step mini-series, you will learn about receipts, budgets, types of budgets.
As a subscriber to CBB, you can also print out all of my financial printable pages for your budget binder for free.
It’s crucial that you stay organized and set aside time every day or even weekly, then close up your budget at month-end.
- A Financial Counsellor will work with you to combine your debts so you have one payment by talking to anyone you owe money to. Credit Canada offers a free debt assessment for their services.
First, know that you’re not alone.
The average Canadian has over $22,000 in non-mortgage debt. The good news is our certified Credit Counsellors know how to help.
At no cost, they can:
- Review your debt and budget.
- Tell you how we can stop collection calls, eliminate interest, and reduce monthly payments.
- Pull your credit report and credit score.
- Offer money management tips, budgeting advice, and show you how to save money.
- Provide you with your best debt relief options.
It’s completely confidential, non-judgmental, and 100% free!
P.S. This is NOT an affiliate link, but a free debt assessment, and I’ve heard good things about it.
Money Management Firms
- Money Management Firms are where your debt is getting way out of control, and may cost you money or perhaps they offer a free consultation. It never hurts to try.
- Banking Institutions want you to save money so they can house it for you. Call the service desk and ask to book an appointment with someone who can help you handle money so you can save.
Online Budget Websites
- Online Budget Websites such as Canadian Budget Binder or another well-known successful finance blog.
- One that I enjoy for investing is my Canadian Investing Nerd buddy who is crazy for building his retirement dividend portfolio. Mark at My Own Advisor is an inspiration for those who want ot invest on their own.
- Stay away from blogs who are starting their journey to pay off debt if your goal is to become debt-free.
Free Budgeting Advice
- Free Budgeting Advice, courses and tools from various community online or in-person meetings.
- Perhaps ask in a Facebook groups where you live, financial institutions (banks, credit unions) that could provide you with information.
- Financial Advisor who works with your investments should offer you budgeting tips or answer any financial questions related to saving money and investing it.
Reading Finance Books
- Reading the book Managing Your Money For Dummies is as basic as when I read Blogging For Dummies. Some of the other finance books I’ve read are The Grumpy Accountant and The Millionaire Next Door.
- However, I gained quite a bit of knowlege that I didn’t know. This was back in 2012 and now this blog is earning money. – How I earned my first $1000 from blogging might give you insight.
Free Budgeting Apps
- Free Budget Apps For A Mobile Phone could be provided by your banking institution but be cautious of what you pay for and what you don’t.
Mobile Budgeting Apps
A mobile app is another excellent way to learn how to handle money, but as mentioned, be cautious.
There are plenty of accredited mobile apps such as Mint.ca or YNAB (You Need A Budget) you can load on your phone for a fee that might be a good fit for you.
This type of service may not suit those not comfortable giving out personal information online.
KOHO is a pretty cool system that helps you handle money by saving it for you.
You can read my KOHO review and see for yourself.
You can read all about KOHO and sign up for the care as we did. One of my readers told me that it works for her, and it’s an excellent way to save money if you’re new to budgeting.
Learning About How To Handle Money Is A Gift
Handling money is a gift to yourself because you’ve taken the time and effort to learn about your money habits.
Be proud of the process and know that it takes time, and perhaps you’ll mess up along the way but don’t give up.
At the start of our budgeting journey, I learned how to handle money in Canada because the currency was different from the U.K.
I was constantly learning about money management because I knew it was essential to our future success.
Many times at the grocery store, we paid cash, and I needed help from the cashier.
I didn’t know what a nickel or dime was, but eventually, I figured it all out. It’s a good thing many people in Canada were willing to help me.
Whether you are in debt or not, by educating yourself, you are crossing all your T’s and dotting your I’s.
Also, when you learn about handling your money, be mindful that it’s not something you set and forget.
Money constantly changes things, especially with inflation, so consider inflation and how it will affect your bank account as you move through the process.
In January 2022, Canadian inflation surpassed 5% for the first time since September 1991, rising 5.1% on a year-over-year basis and up from a 4.8% gain in December 2021.Consumer Price Index 2022
Learn how to handle money so you can get back on track financially by paying off debt or staying out of debt. The process will take you where you want to go as long as you persist in making it work.
We did it, and so can you.
Thanks for reading.
Please leave your comments or suggestions below. We do not tolerate comments that attack CBB or the other readers, so please keep comments friendly to start a pleasant conversation.
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