It's impossible to make smart financial decisions, or to make changes to your spending and saving habits if you don't have a good idea of what your various financial numbers are.
I brief, here are the things you should know:
- How much money you make each month / bi-weekly. Include earned income, government benefits, and any support payments if you receive them.
- Fixed expenses. Costs that don't change each month, including your mortgage, insurance, car payments, utilities.
- Variable expenses. How much you spend each month on groceries, entertainment, clothes, gas, and "stuff".
- Debt. Money owed to anyone. Including mortgage, student loans, car loans, credit card balance, line of credit, and anything you've borrowed from family or friends. You should also know the interest rate for each of these things.
- Savings. The total for each of your type of savings, including your bank account, retirement savings, RESP savings for the kids, and any investments.
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