Budget Magic

Budgeting takes a little time and work, but the long term payback is immense!  

Research has shown that budgeting can reduce annual expenses by up to 15%.   For an average household this can easily be $10,000 a year in savings.

If we use that savings to pay off debt and invest in long term investments (i.e. - stocks, real estate, land) and generate an annual average return of 7.5% (achievable based on stock market history over the past 20 years), it would grow to over $1M in 30 years!

In Canada, the average household net worth of seniors over 65 years old is less than $600,000 based on information gathered by Stats Canada.  Investing your budget savings wisely puts you on track to be well ahead of the average. 

https://advisorsavvy.com/net-worth-by-age

Budget Tricks

Use your banks spending tracking App (we use TD MySpend) to track your weekly expenses in logical categories.  

At the end of each week take the data from your App and enter it into your spreadsheet budget.   A spreadsheet system allows you to monitor progress and carry over your monthly surplus in each category to the next month.  Let me know if you want a copy of the spreadsheet system we use.   

Proverbs 27:23 tells us to be diligent and know the condition of our flocks and herds.   Today our flock’s are equivalent to our assets and investments.  Budgeting allows us to ensure we always know their condition and that we manage well on God’s behalf.  

Todd Payne

The Path Forward Financial Inc.