Setting priorities

To know your priorities, Isabelle Thibault has a simple suggestion, although it requires some discipline: Write down your daily expenses. "People know their income, but do not know where their money goes." By taking an objective look at your expenses, it is easier to see your priorities and even their worth. But she emphasizes, "No expense is better than another. In managing personal finances, one expense equals another. What you have to do is be aware of the choices you make. Not everything can be a priority, no matter how high an income you have."

The more carefully you do this exercise, the more accurate and representative your figures will be. Consequently, it will be easier to set your priorities.

"You must also learn to pay attention to your behaviour and understand your weaknesses." Finally, when you start to religiously balance your budget, you must accept that you are not perfect, and review your choices without feeling guilty. "It is better to be aware that you need to please yourself and integrate this into your budget, than to drop everything pleasurable because you are under financial strain."