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Why some budgets don't work

Did you think we were about to find reasons why it's O.K. not to budget? Think again! Here are the reasons why the budget you've drawn up may not be working.

Reminder: Making a budget is a way to find out where your money goes and to make sure you are spending it the way you want to spend it.

Reasons why budgets don't work

1. "Guesstimated" amounts
In order for budgets to work, all the numbers must be as exact as possible. Don't use estimated amounts.
2. Budget spreadsheet is not comprehensive enough
Use our spreadsheet, available on the Draw up a monthly budget page. It is very comprehensive and includes several expense categories so you can find a category for each type of expense. If you prefer to create your own, go ahead. Once again, be sure to enter the most exact figures possible.
3. Does not include all expenses
Not all expenses reoccur on a monthly basis. Some bills such as insurance premiums come only once a year. Include them in our budget spreadsheet, making sure to break them down into monthly amounts.
4. Losing track of your daily cash spending
Save all of your receipts and include them in your budget spreadsheet.
5. No savings plan for future projects
Do you have projects for the future? The best way to make them happen is to create a savings plan for each one.

Find out more

To manage your finances even more effectively, see Manage your personal finances online.

For more information
At the caisse At the caisse
Make an appointment with a caisse advisor:

Money question

Do you know where you currently stand financially?

 Yes     No

A few statistics

Institut de la statistique du Québec, 2007:

  • Average rate of consumer debt: 36.2% (debt to disposable income ratio).
  • Average personal savings rate: 5% (savings to disposable income ratio).