Master Your Finances In 5 Steps

Estimated reading time: 8 minutes

Taking control of your money is what it means to master your finances.

If you’re new to Canadian Budget Binder, my wife and I became debt-free in 5 years.

It took us some time to find a place where we were happy with how we handled our income.

I earned $15 an hour, and she was given the pink slip from work three months after buying our home.

We still did it, and although your situation may be different from ours, let our experience be a light at the end of your tunnel.

Today I want to review the five steps you can take to master your finances as we did.

Master Your Finances
Master Your Finances in 5 Steps

Need Help With Food For My Family

Mrs. CBB belongs to a Facebook group for individuals in our city who need food help with no judgement.

She couldn’t help but notice how many parents posted that they had no money with bare cupboards.

Many parents rely on child tax benefits to pay rent, buy groceries and pay debts.

Canada Revenue Agency started to resume tax recovery child benefits affecting child tax benefits.

The Canada Revenue Agency is reminding Canadians that it is offsetting taxpayer debt, and many parents have claimed that it’s affecting their child tax payments.

Daily Hive

The Canada Revenue Agency would like to remind you that it resumed its activities aimed at offsetting taxpayers’ debt last October.

Offsetting involves proactively applying tax refunds and benefit payments (such as the GST/HST credit) to tax and other government debts.

Offsetting is a standard operating procedure that was used pre-pandemic by the CRA to collect outstanding taxpayer debt.

Newswire Canada

It’s heartbreaking when kids are involved, and the pleas for help make you want to reach out to everyone.

Helping Others In Times Of Need

Unfortunately, we could not do this, but we did help one mother who has two children, one with autism.

You may not know this, but our son has autism and struggles with a sensory processing disorder, which limits what he eats.

Sensory processing problems (note the related term sensory processing disorder) are when a person has troubles processing sensory input, and this can lead to individuals having problems with moods and behaviours.

Affected individuals may be overwhelmed by what otherwise appears normal amounts of sensory input (i.e. normal noise, light or touch) to others.

Recognizing when someone has sensory processing problems is important because there are ways to recognize sensory triggers, and provide a healthier ‘sensory diet’.

The women’s daughter has the same struggles, and we felt compelled to help her.

Mrs . CBB contacted her and asked her to send us a list of the food she needed.

  • Kraft Dinner
  • Fruits and Veg
  • Milk
  • Diapers
  • School snacks
  • Crackers
  • Soup
  • Beef
  • Canned Tomatoes
  • Gluten-Free Pasta

We cared for her family, and the love we felt from them was overwhelming.

It also helps us appreciate what we have even though we’ve been through tough times.

During the conversation, Mrs. CBB asked her if she used a budget as she would suggest this excellent website she knows about. Haha!

She responded, “I don’t know how to manage money using a budget.”

Often a little help goes a long way for someone who doesn’t know where to begin.

Master Your Finances By Understanding Money

Financial literacy in Canada is critical; not all adults are taught money in school.

Unfortunately, some adults are beyond wanting to learn, but others wish for that control.

That’s why I wanted to talk about how to master your finances using baby steps.

  • Are you tired of being in debt?
  • Do you want creditors to go away?
  • Is retirement savings weighing heavy on your mind?
  • Do mortgage interest rates worry you about your renewal?
  • What if your landlord wants to sell the dwelling you rent?

I guess the most important questions to ask yourself are;

  • Am I ready to start a financial journey with dedication and goals?
  • Do I have a positive mindset?

You can do this but you must believe in yourself and put in the effort.

Setting budgeting goals yesterday and today are very important, especially as our situation changes.

It’s essential to be realistic and aim for small wins, such as getting rid of debt.

Your life as a frugal family must entail certain habits to ensure mastering your finances.

For example, revamping a grocery budget to fit monthly expenses instead of guessing.

Another example might be starting a garden to offset yearly grocery expenses.

How about buying thrift store clothing instead of splashing on new threads?

The idea is to change your mindset, which kickstarts mastering your finances.

STOP Paying For Printable Budget Binders!

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There is no need to pay for any budget binder printables other bloggers sell.

I was tired of seeing absurd amounts of money asked for printables I created for CBB.

My money mindset is that I don’t want your money, just the honour of your presence.

I appreciate my readers sharing Canadian Budget Binder with friends and family.

In return, I want to inspire you to master your finances.

5 Steps To Master Your Finances

How do I master my finances?

There are many things we can do to maximize our money. However, the first thing is to gain control of it.

That’s why I want you to consider mastering your finances one step at a time.

Failure is imminent when people get too ahead of themselves because immediate success will never happen unless you win the lottery.

Thinking about finance steps, I return to the beginning days of our budgeting journey.

Below are five steps I feel anyone new to budgeting should take to start the process.

goal setting
Mastering Your Finances By Setting Goals

1. Setting Goals

Financial commitment differs from goals, where you have set an obligation to fix, whereas a goal is something you’d like to complete.

Financial commitment’s impact in conjunction with goal setting goes hand in hand.

“I want to save $500” – Setting a Goal of budgeting to save money.

“My credit score is low” – Financial Commitment to increase a credit score.

When creating finance goals, create two columns, one for goals and the other for commitments.

Stick the page on your refrigerator, put it in your budget binder, and review it monthly.

Change it as needed but use it as a motivational finance tool.

2. Budgeting Baby Steps

Years ago, I created a mini budgeting series for anyone who wanted to know the basics.

It’s a simple budgeting process to get your mind thinking about where money should go.

Using any of my free budgets, it’s easy to implement, and I encourage you to take the time to review all ten steps.

Canadian Budget Binder Ten Step Budgeting Mini-Series

3. Pay Yourself First

Paying yourself first means giving yourself an allowance and investing, but mainly putting savings away when you get your cheque.

If you spend $50 on weekly lottery tickets, take that money and save it for emergencies.

Automatic savings is another term for paying yourself first.

4. Debt Reduction Plan

Creating a debt reduction plan starts by jotting down every debt you owe.

The debt snowball method is a very popular method that I suggest for those new to finance.

5. Master Your Finances With Savings

The first thing I hear from people struggling with their finances is that they have no money to save.

Although true, once beginning a budget, they would report it easier to find a dollar to save.

Perhaps they stop buying coffee out every day and make it at home.

Similar to paying yourself first, these savings are used for debt or to put towards budget categories that need a boost.

Finding Your Financial Sweet Spot

Believe me when I say you’ll never quit if you can make it through one year of budgeting.

The benefits of using a budget, tracking your money, and reducing debt can be addictive.

I think that it’s great to stick to goals, but I also believe in balancing happiness and freedom.

For this reason, when you think about the five steps above, don’t leave out self-care, family fun, and relationship romance.

None of this has to cost money, and if it does, keep it minimal by utilizing cash-back apps, discount codes, rewards points, etc.

I hope you gained some insight into the world of mastering your finances and that you continue to educate yourself.


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