Spending Mistakes you should avoid

Spend or Save

Table of Contents

Problem: Spending more that you earn!

As Canadians, it seems we are more and more becoming used to or comfortable with increased debt loads. The desire to have the latest gadgets, electronics or whatever your item of want is, can help lead to one living beyond their means.

This continued pace of spending only leads to one being more and more in debt until there comes a point where things are just out of hand and they are not able to deal with all of the added loans on top of their standard monthly bills.

Impulse shopping here can be a problem for some and if this is an issue for you, this will need to be something that you will need to work on.

Ultimately you will need to live within your means, not doing so will just lead you further into a spiral of debt.

Having a Credit Card Balance

Carrying a credit card balance is not recommend. Generally credit cards will have a high interest rate and this cost can add up each month. While many like to get all those wonderful rewards that are offered, many times you are more than paying for those rewards with the added interest payments on your credit cards.

When using your credit card, it is recommended that you pay the balance in full each month. Stay on top of paying it off, don’t let the balance build up. Leaving it alone and not changing your spending habits can just lead to a very big credit card bill each month.

Purchasing a house that cost too much

What is one of the biggest differences with today’s generation to the older generation? The older generations were more likely to pay off their mortgages.

Today, with interest rates so low, it was very easy to get a large mortgage and more house for cheaper that renting at sometimes. The houses are bigger, more square footage, and more rooms.

Sooner or later mortgage rates are going to rise, and for some with very large mortgages, the actual amount they have to pay back once they have to renew could be a lot higher. Just recently TD Bank was the first to raise their mortgage rates. This could be an upward trend from the other banks as well.

No Debt Repayment Plan in Place

If a business didn’t manage their finances and were constantly in deficit, it wouldn’t be too long before the business would be facing many financial woes and potentially be out of business.

You need to make sure that on a monthly basis you are not spending more than you make. If you are running a deficit each month, this is just going to add up until you are not able to manage all the bills.

You need to spend less than you make. Creating a budget and tallying up your expenses for the past 3 months is a good way to see firsthand how you are spending your money and help find areas that you need to cut down on.

Not Saving for your Retirement

Are you saving for retirement? Many are not saving enough for their retirement. A common reason for many not saving is due to the fact that with one’s monthly bills, there just don’t seem like enough cash to go around and save for the future.

Setting up automatic withdrawal payments is a good way to just set it and leave it to start on building up your savings. This will help you with to start getting a start.  If your employer has RRSP matching. This is something that you should fully take advantage of, and help to further save for your retirement.

Take Your First Step Towards A Debt Free Life

If you are overwhelmed by debt, call us at 1-844-962-9200 to book a FREE, confidential appointment. We will review your financial situation in detail and discuss all of your options with you. Alternatively, you can fill out the form below and our team will reach out to you. 

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The team at David Sklar and Associates Inc are very professional and are willing to help you get out of debt. Highly recommended.
Melissa MacKenzie
12:35 29 Mar 23
I would like to thank the team at David Sklar and associates inc. for all the time and effort they put in to support this process for me. This topic can be challenging to disclose but a big thank you to Christine for going above and beyond in guiding me through all my options and supporting me through the decisions. I cannot recommend this group enough , as they have shown me compassion , knowledge , and understanding throughout the entire process. I look forward to the next step of this process and learning how the proper way of becoming financially educated through the support of their financial counselling team. For anyone who is struggling , just know that there is a wonderful group of educated professionals at David Sklar who are available to help!
Michelle Plouffe
18:45 14 Mar 23
It took me awhile to get up the courage to contact David Sklar but I’m so glad I did. Trina walked through my options with me and provided the knowledge I needed to make a decision to help turn my financial situation around. She is patient and empathetic and answered any and every question that I had. Trina provided me the reassurance I needed that I was making the best decisions for me and my family. I’m so happy that I reached out and now have a plan to get back on track.
M. Mackenzie
19:59 12 Mar 23
Trina was very helpful and thorough.
Sam M
15:26 12 Mar 23
Christine was very helpful, kind, and understanding. She explained everything thoroughly, answered any questions I had, and was responsive to any concerns I had. 100% would recommend
Katherine Campbell
17:29 08 Mar 23
Jackie Stanley is excellent she took the time to explain everything to me and I am so grateful to her for giving me a fresh financial start so if you have any doubts don’t and go see her if you want to achieve financial freedom!
Heather Helfield
21:24 06 Mar 23
Amazing friendly staff that knows what they are going. They make a difficult situation not so bad. Would give 10 stars if I could.
alie Balan
22:37 25 Feb 23
Very helpful and kind and gave me all the available options before helping me decide which one was best for me. I would definitely recommend Jackie
Alison Rivard
01:01 21 Feb 23
Great experience i was in financial trouble and someone of my friends recommended this company. Cori is a wonderful and welcoming person she did a very good job and came up with a smooth and flexible monthly payment after the reduction. i highly recommend this company. Thank you David sklar and special thanks to Cori.❤️🙏🏻
Jasmine Joseph
22:08 13 Jan 23
Met up with Mr. Jason Sklar to discuss more in person, very thorough and clear. He is very kind and thoughtful, I will be referring anyone with the same situation to David Sklar & Associates.
Ariel Domingo
02:33 29 Dec 22
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