Relationship with your money: The Budget

by Jeri Bitorf, Certified Money Coach

Keill & Associate- Strategic Partner

Budget Coaching:

Many of the thousands of people I have helped over the last 13 years have expressed that they struggle creating a budget, or following one.  Some might think it’s restrictive, or difficult and others might feel like they won’t be able to make it work even if they tried.  With the right support, tools, and coaching you can have a well planned budget that works for you and your family.  You’ll have the freedom to make choices, and gain confidence in your ability to reach your goals.   

Why do you need a budget:

A well established budget can reduce stress, anxiety, and arguments related to money. It creates stability by planning for periodic expenses, paying off debt, saving for emergencies, and long term financial freedom. Budgeting is very important for couples to ensure they are on the same page and know what they can spend. Without it they could be spending in different directions which leads to instability and frequent arguments. Families should budget so they can plan for all the last minute expenses that always come up; time off work, clothing for growing kids, sports, or gifts. Every individual needs to budget so they can pay expenses on time, feel secure, and work towards goals such as purchasing a house, paying down debt, building up education savings, and future retirement.

The best way to budget:

Many people write out their monthly income and expenses, and have an idea of what they can spend, and that’s about it. This is extremely important and an absolute must when it comes to budgeting, but you need to do more. In my opinion the best way to budget is pay cheque planning which gives step by step instructions on what to do after each pay.

This plan should be calculated for a minimum of four months at a time. Multiple months is key to seeing patterns in spending, forecasting any deficits, and planning for periodic expenses. When you create a step by step plan for each deposit you’ll feel more in control and confident that you are actively working towards paying down debt and building wealth.

Tips to sticking to a budget:

1. Use cash for all variable expenses. This is recommended a lot because it’s tried and true. If you are new to budgeting or find sticking to one challenging, cash is the way to go. Here’s why; if after you pay your fixed expenses and you have $500 left in your account it becomes very easy to spend it all, even if you know you need some for bills later in the month. When you take the budgeted amount out in cash you have a better chance of sticking to the budget. Cash also makes you more aware of spending because you are physically using the money, and see it going away.

2. Review weekly. For a budget to be successful it needs to be worked in often. If someone has $200 per week for groceries, and buys them on debit and credit throughout the month it is easy to overspend. This is even truer if two people have access to the same accounts. How many times have we opened our credit card statement and became surprised by the balance. Weekly reviews eliminate these surprises, opens up communication in families, and helps you make adjustments to spending so you can stay on track.

3. Save for periodic expenses. Car maintenance, gifts, medical, veterinary, house repairs, these are all things that can wreak havoc on a budget if not properly planned for. Go through your last year or two and figure out how much you spent on these items. Divide the yearly amount by 12 and that is what you should be saving each month. To go one step further create multiple savings accounts for each periodic expense and name them. This way if you need to dip into one of your savings pools, you will still feel like you are working towards your other goals.

4. Seek the help of a professional. As a strategic partner aligned with Keill & Associates client centric views, you know that we have your families best interest in mind. As a Money Coach, I have help thousands of people to create a plan that works for them. With the right supports, you can gain the knowledge and confidence to create a budget that works for you towards building real sustainable wealth.

What is our Budget Coaching Program?

Budget coaching consists of 2 sessions. The first session is exploratory to help map out your monthly net income, expenses, debt, savings, assets, and goals.

Before a budget can work successfully you need to have a good plan to manage outstanding debt obligations. If debt is a concern, we discuss various debt repayment options. As a Certified Credit Counsellor and Insolvency Counsellor I have extensive knowledge on debt solutions. We will talk about the pros and cons of each option as it applies to your situation so you can make an informed decision. I then help you create a plan to become debt free and improve you credit score.

After this exploration we will have a good idea of where you are now, and where you want to be. I will take this information and develop an achievable step by step plan to help you budget, pay off debt, and reach your financial goals.

At the end of the 2 sessions you will have a personalized budget tool that can be adjusted for any life circumstance that arises. You can then use this tool for many years to come. You will also receive a customizable snowball calculator that can help you pay off debt faster. You will then be provided with personalized supports through periodic support calls by your money coach and of course with our extended Team at Keill & Associates.

With the right supports, anyone can learn to budget and have a plan that can be adjusted when unexpected expenses occur. Why wait, contact us now to book a complimentary appointment with our Money Coach to learn more about our new Budget Coach and Money Coach programs.

Disclaimer and Notice to Reader: This Discussion Paper should not be construed as legal or tax advice but rather only as a general statement and explanation of the topic matter. Professional tax and legal advice should be obtained for the readers own personal situation. For more information on this topic or how it applies to your family, please contact our Wealth Advisory team.

Last Edit Feb 4, 2025