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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I was quite nervous and a little embarrassed that I needed financial advice. I met with Jerry Janiec and he was very helpful. He made me feel comfortable and explained everything in easy to understand terms so that I understood what my options were. I would recommend David Sklar & Associates for anyone in my position.
Melissa Blackburn
19:53 17 Nov 22
I was fortunate enough to be referred to David Sklar & Associates Inc. by a family member. Now in the10th month of a Consumer Proposal process, I am very impressed with the organization, professionalism and impeccable customer representation that I have experienced. To this effect, I amparticularly thankful to Jerry Janiec and Rhoda Lewis for their excellent work.
Suzanna Vaclavik
12:21 16 Nov 22
Recently dealt with Christine at David Sklar & Assoc. and worked out a Consumer Proposal to put forth to my creditors for my Credit Card debt. She was very courteous, professional and put me at ease with a proposal that I can afford on a monthly basis, which will eliminate my debit in a reasonable timeframe. I would recommend Christine and this firm in a heartbeat. Very happy with the service and attention I got !!
Patrick Kovanchak
01:59 15 Nov 22
Excellent customer service. Special thanks to Olga for being prompt and helpful. She’s a star. Bibi is helpful as well. Great agency to work with.
Fady Tadros
19:28 14 Nov 22
After seeing your commercial play on CP24, I realized that it addressed all the questions and concerns I had about my financial situation. It all started with my one phone call to your office. I had the extreme pleasure of working with Cori Naron at your St. Clair West office in September 2022. She took the time to explain what my options were knowing that it was a very stressful situation with my debt load. She made me feel at ease with my decision to file a consumer proposal and outlined the benefits to me. She is thorough and her attention to detail is outstanding. While it takes a little while to reap the benefits of making this hard decision, she took the time to reassure me that it was in my best financial interest. Well done David Sklar & Associates for having such an amazing representative at your company and for allowing me to "get a fresh start"!
David
14:31 14 Nov 22
Very highly perfection individual, well executed and greatly knowledgeable in his work, which guided me me the right decisions making opportunities. Thank you.Sincerely, Peter Romasz
Peter Romasz
20:18 13 Nov 22
Trina Powell was very helpful and made the process very easy. Thanks again for all your help.
Jennifer Hager
17:59 06 Nov 22
Jerry is a caring, trustful, knowledgeable and competent Sklar associate. He understood my needs and quickly went to work on my behalf. Ever indebted to David Sklar and Associates and especially to Jerry for his professionalism and caring approach.
David Craig
19:31 31 Oct 22
Jerry Janiec is very knowledgeable and very helpful everything he explained to me was straightforward and very easy to understand. I'm very pleased to be working with Jerry to become debt free. I will definitely be recommending to any friends or colleagues your services.Thank you again for helping me get on the road to be debt free. 5 Stars is well deserved.
Christopher Rakobowchuk
17:41 27 Oct 22
Hi there! I am very glad to met this company, especially Jackie Stanley. Thanks for her great work and help me to save my money! Very appreciable!
Mehri Agil
02:43 26 Oct 22
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