Budgeting: The Easy Way

by J. Douglas Hoyes

Today I’m going to let you in on a secret: there’s an easy way to budget.

Are you surprised?  Are you one of those people who believe that budgeting is very complicated?  If you are, you’re not alone.

Most people I meet with here in my Cambridge bankruptcy office, when I ask them what they spend each month, have trouble telling me exact numbers.  They know what they spend on rent or mortgage payments, but beyond that, the numbers are a little fuzzy.  Why?  Because they don’t have a household budget.  When I ask them why they don’t have a budget, they tell me:

  • it’s too hard to budget
  • it takes too much time
  • they don’t know how to work a spreadsheet
  • their spouse pays all of the bills

Those are all valid reasons, but if you don’t know where your money goes, how can you make a plan to get out of debt?  So today I’ll tell you the secret to budgeting the easy way:

Don’t budget.

Simple as that.  Don’t budget.  Instead, pay your bills as often as you get paid.  If you get paid every week, split your hydro, gas, cable, phone and other bills into weekly amounts, and pay one quarter of your bill each week, on payday, through internet banking.

To learn more, you can read my report on The Secret to Making a Budget, or you can watch these two short videos for all of the details.

The Secret to Budgeting, Part 1:

The Secret to Budgeting, Part 2:

If you have so much debt that budgeting won’t help, give my office a call in Cambridge at 519-622-3773, or e-mail me, and we’ll discuss all of your debt management options.

About

Douglas Hoyes is the co-founder of Hoyes, Michalos & Associates Inc., Ontario's largest independent personal insolvency firm, and the trustee responsible for the Hoyes Michalos Cambridge office.

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