Financial Back to Basics with Bromwich and Smith

VANCOUVER -

Next month will mean kids are heading back to school.

Taz Rajan from Bromwich and Smith says this is a great time for parents to get back to basics with their finances.

For many people, money management, budgeting, how to deal with debt and overall financial literacy was not taught in school.

Rajan had these tips for parents to start making strides toward a healthy financial future:

Budgeting: Nearly half of all Canadians say they have and stick to a budget. A budget is a forecast that shows the amount of income you expect to earn in a month and a list of all expenses that will need to be paid. Some expenses are fixed, like mortgage payments and utilities. It is important to include room for variable expenses like dining out or gas. A budget allows people to see where they may be able to adjust expenditures in order to avoid a monthly shortfall.

Emergency fund: Sometimes life events happen that are out of your control. Having an emergency fund is imperative to navigate unexpected expenses that crop up. Rajan says that it is better to have something set aside than nothing. Ideally, the minimum amount in an emergency fund should be $1,000. Many financial experts say people should strive to have at least one month's salary set aside. This can ensure liquid cash is available for emergencies like vehicle breakdowns, medical emergencies or events like a flood in the household.

Goal setting: Goal setting toward large purchases is an important step for healthy finances. Retirement savings, kids' education, vacations and other large purchases should be considered. Planning for the future and putting a bit of money aside in advance can avoid going in to debt to bring these goals to life.

Rajan explained that sometimes even with the best intentions debt can happen.

There is no shame in reaching out for help and the best time to do so with debt is now.

Rajan advises to not wait for collection agencies to start calling.

Debt can cause a lot of mental anguish and stress.

Rajan says reaching out to a Licensed Insolvency Trustee like Bromwich+Smith can help put people on the right path.

Their friendly team can map out what options are available and help people take control of their financial wellness with a free, confidential consultation.

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