Following up after a serious money-spending spree, depending on how well it was planned and how much damage you did to your bank account, it might be time to start tightening the spending belt and looking to build up your financed once again. Unfortunately, this season breeds spendaholics - not only do you have a large chunk of gifts, money and gift-cards, but post-Christmas shopping sales can be hard to resist.

In addition to these sinfully fun activities, post-Christmastime brings a new year and a new opportunity to realize financial goals. The key to a successful holiday wrap-up is to balance your interests, wants and needs. How you do this is entirely up to you, but here are a few tips to get you on the right path:

1. Repay Debts. If you managed to accrue any debts over the holidays, now is the time to pay them off. This is a priority above most saving and definitely over Christmas-week sales. Do whatever you can to eliminate unnecessary interest payments, whether this means paying down your debt immediately or transferring the balance to a low or no interest account.
   
   
2. Build Up a Buffer. 'Tis the season for all sorts of messy things that can catch you in a financial bind. Whether the weather or other things cause you some unnecessary stress, it is always helpful to have some extra money in the event of a car emergency or a furnace repair. After paying down your debt, building up your emergency fund is a high priority.
   
   
3. Cement Goals. Now is the time to create a plan that will help to optimize your financial goals for the next year and beyond. Do you want to pay down your mortgage, add an extra thousand to your retirement savings, or save up for next year's gift budget? Start to cement those goals now in order to put plans in motion for a successful new year.
   

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Whether you've lost your job, accumulated a great debt or experienced unfortunate circumstances that have left you financially unstable, being "broke" can be incredibly frustrating and stressful on both you and your family. Many of us find ourselves in situations where we have less money than we "need" to survive, and while we can try to cope in the short term, we often find ourselves at a dead end with no hope in sight.

There is no secret to coping with being broke - you simply need to plow through the worst of it and keep a positive ending in sight. While there is no secret to this, there are some things that can help make life a little easier:

1. Stabilize. After any major financial blow, you need to stabilize what you do have and stop any additional "leaks" that will worsen your situation. Take this opportunity to dip into your emergency fund if needed (and if possible). Look at your spending habits and eliminate any unnecessary expenses as soon as possible. Work out a budget to determine how much you need to survive and do whatever you can to secure this amount - it might mean a loan, temporary extra employment, or liquidating some of your assets.
   
   
2. Prioritize. Now is the time to discover what really matters in your life. You will be faced with difficult decisions on how to divide your time, money, and thoughts. Determine what can be maintained and what needs to be eliminated from your life. You may need to make some sacrifices for the greater good, but it is better to know this now instead of a point when you are in serious crisis.
   
   
3. Strategize. Once you have organized your finances, you will have a bit more control over your situation and will feel less anxious as a result. The next step is to strategize a solution to the problem. You know where you are now, but where do you intend to be? Make a plan, dealing with as many specific numbers as possible, of how much money you need in the long run (pay off debts, save, etc). How will you achieve this? Look at alternate income sources, changing your job, extra work, etc. Think of both long-term and short-term solutions.
   
   
4. Optimize. Make the most out of what you got. Don't let yourself get beat down and lost in a world of negativity. Take this opportunity for growth and development as a person and as a family. Learn new things, take courses, try a new direction, etc. There are many things in life that you can do for free (or almost free), so take this time to do them! Pick up a hobby, a family activity or a new talent.
   

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It's easy to think in terms of maxing out your retirement savings or putting thousands into your emergency fund - not only is it easy, thinking this way can be very financially productive. In looking at the "bigger picture", you're able to think about your actions and your spending habits from a grander scale - i.e. spending less money now to save for the future.

If you want to be as frugal and as financially "under control" as possible, you also need to start looking into the details, way beyond the "bigger picture". Take those patterns and behaviours you have identified on the larger scale and adapt them to your daily life; with a few small adjustments, you might find yourself saving more money and spending less money with little to no effort.

A few ways I currently save and hope to save in the future are as follows:

1. Pay into your retirement ASAP - field "experts" say that you should max out your retirement savings before paying down your debt/mortgage and your children's savings funds. I personally put a very small amount into my RRSP from my account immediately after I am paid - but this works equally well if you can have the deduction taken from your paycheque or some similar method of immediate payment.
   
   
2. Pay into your future ASAP - in addition to my retirement savings, I also pay a portion of money into my personal savings account. This personal money (not held in my joint savings account) is for my future; although I don't foresee future problems with the Boyfriend, anything is possible - and keeping a small nest egg aside for myself is smart and secure.
   
   
3. Keep the Change - we never use cash anymore, but if and when we do, we keep all of our change in a large container in the house. You won't miss it, trust me. When the container is full, we'll have a nice chunk of money that we didn't put any effort into saving!
   
   
4. Round it Up - when I budget, I use nice round numbers. If we happen to go under budget, the difference will go into our savings account, as I have essentially already spent that money by our standards. This applies for our telephone service, our groceries, etc - if a bill comes in at $113.29 and we budgeted $130, that remaining $16.71 goes away for a rainy day.
   
   
5. Live Frugally - this one essentially goes without saying; if you want to save money, you need to make more and spend less. If you continue to make the same amount as you currently do, the only way to save more is to spend less. Buy generic-brand things. Spend less time going to movies/dinner/etc. and more time entertaining in the home. This method might not seem painless and simple at first, but as your savings increase, living frugally will become easier and easier.

How do you save your money without feeling the pinch?

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Although you can't beat a great home-cooked meal, there is something to be said about the ambiance and experience of dining out. You have the opportunity to try new foods in an environment that is exciting, bustling, romantic or casual. You have the opportunity to truly indulge and spend some quality time with friends and family. And, one of the most important aspects of dining out, you have the opportunity to forget about planning, preparing, cooking and cleaning up after a well-made meal.

Unfortunately, take-out and restaurant dining can leave you with a hole in your pocket if you rely on its convenience too often. Dining out can be blended into your eating habits and your family budget to provide you with some well-deserved breaks from the kitchen. Some tips to a happy meal and a happier wallet are as follows:

1. Plan Ahead - One of the worst ways to dine out is on the fly. Instead of planning ahead, looking for deals and choosing carefully, you pick your location and your meal on impulse. Impulsive purchases are often more costly than their planned counterparts because they are exciting and often allow you to eat "naughty" things (like three servings of dessert). Plan ahead by researching the restaurants in your area - either by contacting friends or by surfing the web. Find something within your price range, preferably one that gives you the most bang for your buck.
   
   
2. Sale Shop - Much like you might shop around for the best price or go to a store when they're having a sale, treat your restaurants the same way. Many places offer a "cheap night" or a deal (especially "kids eat free") that allow you to get your meal at a fraction of the cost. Look on the company website and online to see what you discover! A few local restaurants in our area have full meal deals (drink, appetizer, entree and dessert) for approximately $10.
   
   
3. Cut Coupons - In addition to finding the best deal from the restaurant, look around for coupons to maximize your savings. If you're lucky, you will be able to combine these deals and pay an even smaller price for your meal! A quick search for "restaurant coupons" will give you a lot of reading and a few deals. Frequent customer cards can also get you a lower price, but be wary of those that require a set-up fee or any regular costs for joining.
   
   
4. Portion Control - Once you've gotten to the restaurant, consider the size of the portions relative to the size of your hunger. A few peckish adults could share some appetizers instead of ordering full entrees, and choosing a child's meal instead of an adult-size dinner can give you the taste you desire at a lower price (add a salad or soup if you're still hungry).
   
   
5. Don't Portion Control - On the flipside, take advantage of large portions and use your dinner to eat for two nights. Order your large entree (preferably one with an appetizer included) and only eat half. Take the remaining portion to go and use it for your next night's dinner. Although this does not save money in the restaurant itself, you will save money on your next meal's grocery trip.

Dining out can be a blessing and a curse, depending on how you use the resource. By planning ahead, looking for deals, and being aware of what you are eating, you can slash your bill in half and still have a great meal.

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Growing up, my family lived in such a rural area that we did not have access to cable or satellite television. For the first 13 years of my life, we had access to three channels (two of which were in English) as delivered through the TV antenna mounted on the side of our home and/or a pair of "rabbit ears" attached to the television. In fact, we had to add a few lengths of aluminum foil and some metal clothes hangers if we hoped to see these channels clearly and in color.

When I turned 13, our family purchased a satellite TV system - the technology in those days was a little less advanced, and a lot more costly than today's slim and sleek models. We easily spent over $150 a month on the service alone, not taking into account our increased electricity consumption or that we only received a limited number of stations for that price. Since moving out of my parents' home at the age of 17, I have lived almost completely television free - no cable, no satellite, only that pair of "rabbit ears" that allow me to watch a few stations with a little effort.

Not everyone can be comfortable without television, and the "boob tube" does have its merits - TV can be a great stress reliever and allow you to unwind and relax after a long day. You can bring your family together to watch a favorite show or movie, and you can use it as a social connector with others who enjoy the same shows as you. Our culture is very media-centric, and it is understandable that many of us "need" a TV - the question remains, how do we keep that expense in check and lower our cable bill?

• Consider Dropping the Expense Entirely - for those of you really looking to live frugally, I would consider eliminating your cable TV altogether. Living a TV-free or TV-limited lifestyle opens up a world of other opportunities; listening to the radio, completing more tasks, spending more time outside as a family, and the list continues. Even though I have "no TV", I can still watch all of my favorite prime-time shows by keeping a $20 set of antennae attached to my television.
  
  
• Consider Downgrading - if you can't get rid of it completely, consider downgrading your cable package to something a bit more limited. Although I do not have TV, my mother does - and her current HDTV package contains over 250 channels, a handful of movie networks, and a few repeat channels in high definition. The cost? $75 before taxes and administrative add-ons. By switching to a package that has slightly less than the bare minimum you require from your television, you will learn to adjust and will find more time in your day and more money in your pocket.
  
  
• Consider Haggling - the next step to decreasing your cable bill is to phone up the service company and ask for a lower price. It's as simple as that; arm yourself with information (comparative rates from other companies, your own costs and your use of their services) and speak politely with the customer service representative. You may receive a lower rate as a result of customer loyalty, the service representative might be able to coordinate a more cost-effective package for you, or you may end up skipping to the next step.
  
  
• Consider a Switch - if you are unhappy with your service and cannot find an alternative within that company, you might consider a switch to an alternative media source. This may mean another cable company with a lower rate or better value package, or it might mean looking at TV-on-the-web, purchasing your favorite TV shows on DVD (this is a popular method in my home), or renting DVDs from your local library.

Whether you choose to eliminate, limit or switch your cable television services, taking a good look at your TV habits can be an easy way to lower your monthly expenses and increase the quality of your life. For someone who spends a strong portion of their day in front of the television, a change to their habits may be jarring at first, but you will easily find yourself adjusting and learning to adapt to new systems. Your wallet - and your mind - will thank you.

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Yeah, I had a hard time believing the title of this post myself, but it's true. At first, I projected our line of credit would be paif off by the end of this year. Then, I thought we could have it done by the end of February. Now, with a little bit of tweaking and some serious rebalancing, we are going to knock this puppy out by January 31st, 2008. How are we going to do it?

• Use Financial Cushions - As of November 31st, we are going to have $1,000 in our "emergency fund"; this was the minimum limit I set for us before we would be able to aggressively pay down our loan, and we've made it already. This amount will allow us to draw from other money streams (my personal savings, our chequing account buffer, etc) and not worry about any emergency things that come up - that is, after all, the purpose of an emergency fund!
  
  
• Draw From as Many Places as Possible - Now that we have our cushion in place, I will be drawing all extra funds from our different accounts and using any extra revenue streams to pay down this loan (we'll be squeezing harder than if we just bought the world's most expensive orange). We cancelled the pet insurance, which is another $79 against our LOC monthly. I am not worrying about keeping a large buffer in our chequing account; I will watch our account more closely and leave $500 in it, rather than keeping $1,000+ in the account and being able to watch it weekly/biweekly. And, guess where my $500 (approximate) work bonus is going? You got it.
  
  
• Freeze Your Spending - After Christmas, our credit cards are going in the lock box again. We will be spending the absolute bare minimum on ourselves until this debt is repaid - that means no extra trips to the grocery store because Haagen Dazs is on sale 3/$10. That means no pizza on Fridays when we're super tired. That means no Pad Thai lunches with my boss - but what it does mean is that we will be paying less interest overall and will be consumer-debt free by the end of 2008's first month (and completely debt free by Spring)!
  
  
• Look for Money - Although this is not factored into our debt repayment plan, we are looking to generate some extra income over the next few months. My boyfriend is possibly going to help out a school friend with some extra work shifts, and he might end up going to work with another friend of his at a new place of business. I am trying to think of ways to generate extra revenue, and am also casually viewing the market for jobs that better suit the level of experience I hold. We are also thinking of renting a room to an acquaintance for a little extra monthly income; all of these are means of reducing our debt quickly and completely.

Having this debt has been increasingly hard for me since I've realized how poor my spending habits actually are - like my parents before me, I believed that a steady income and regular payments meant that I was a smart money person; nevermind that I was caught in a vicious debt cycle on a monthly and yearly basis. Knowing what I know now, there are so many things that I can see as true wastes of money:

• My Tax Break - $1,500-$2,000 annual "extra" income that has always gone to repaying my credit card...this, coupled with my boyfriend's amount, could mean a little more in our emergency fund or possibly some furniture for our house (which still remains empty).
  
  
• Birthday/Holiday/Just Because Cheques - Thank goodness for still being a "child" in the eyes of the "adults"; we get a nice amount of extra money for special occasions. Instead of wildly spending this money when we should be using it to repay our debts, we can actually spend it with no guilt and no painful repercussions; or, we could just invest it!
  
  
• Work Bonuses and Wage Increases - I used to follow a really strange method of working (mainly because I hate working). As the manager at my old job, I was responsible for creating the work schedule - which means I determined whether or not I worked a lot or a little. I would always take a quick glance at my accounts and schedule according to how much money I needed to pay off my credit cards. Also, I would always be the first to "leave" and spend time walking around the mall/spending money instead of making it (all for the benefit of a lower labour cost and a happier store owner). Now that I work set hours and I have no financial temptation once I leave the workplace, I can take any increases or bonuses in pay and apply them to something more relevant than Starbucks' Macchiatos.

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A very valuable question has been posed over at the wpersonalfinance network - what are some steps that we (as parents or as a society) should teach our youth in order to help raise financially responsible children?

All six of these thoughts can be applied to an adult's spending habits and views on money; however, the earlier we begin to implement these ideas, the better they will stick and the less negative behaviour we will exhibit when spending or saving our money. The best way to ensure that your child abides by these financial rules is to make them standard throughout your nuclear family. Children are very receptive and will pick up on your money habits - positive and negative - whether or not you make an effort to actually teach them to your child.

We could all do well by following some financial guidelines. Here are six rules I believe that every child should be taught:

1. Money is Not the Be-All and End-All. Children raised in a world where money can buy them happiness, freedom, success and friendship will not be responsible children. We should teach our youth that a dollar value is not attached to all things - whether this means planning some free family activities or encouraging our children to donate their money to someone who "needs it more". Children who grow up with the realization that they are responsible and accountable for their actions and goals, while making money a less-important factor in their life, will end up being more industrious and less attached to their pocketbook.
   
   
2. Only Spend What You Have. If we followed this rule from birth, there would be no debt and there would be no bad credit. Simply put, teach your children to only spend what they can afford at that moment - if they cannot afford it, the concept of saving can go a long way. This will teach children to avoid relying on money from other sources - be they personal loans or credit cards. A solid foundation of the concept of money will pay your child back tenfold.
   
   
3. Delay Gratification. I distinctly remember going to the store and buying bags of penny candy after school, then being left with a less-than-stellar remaining budget for school field trips and book fairs. If I had learned the concept of delayed gratification, I could have put my immediate desires aside in order to afford a more substantial future goal. Children who learn this will be able to resist temporary temptation (those new jeans at the mall) in order to afford something much more important to them - a car, college tuition, a wedding, etc.
   
   
4. Quality over Quantity. Buying ten new winter jackets at $50 for ten years is a $500 investment. Buying two winter jackets that cost $150 each and last 5 years apiece is a $300 investment; meaning you save $200 in 10 years. This may not seem like a lot, but the principle is what matters - buying things that you research, hem-and-haw or dig around about can save you a few precious pennies, even if the initial cost is higher. A proper savings plan and utilized delayed gratification can make this work, and can teach your children to focus on a higher quality of product instead of the easiest answer for the short term.
   
   
5. Pay Yourself. One financial lesson that my father taught me quite early was to always pay yourself along with your regular bills for other people. This does not mean paying down any debts or paying off your credit card; paying yourself means putting money aside for your spending and your saving purposes. Teaching your children to put 10% of their allowance/wages/birthday money in a savings account will help encourage delayed gratification and show them how easy it is to support the idea of a financial buffer in case you need to buy something you cannot normally afford or in the event of an emergency situation.
   
   
6. Shop Smart. My boyfriend likes to call this section "It's Only a Bargain if You Planned on Buying it Anyway", which contradicted my old way of thinking about shopping. Include your children in comparison and sale shopping as soon as possible, starting with a well-planned shopping list and ending with the balancing of your chequebook or bank account. A child who shops smart will be able to avoid impulse purchases, plan their shopping trips and stick to a prescribed budget with little effort.

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My shopping tendencies are a little bit...sporadic, to say the least. Although my purchases have essentially flatlined in the past year (no more random clothing purchases for this girl), I still have my favourite stores that I gravitate to when necessary. The process of looking at your "spending map" (as I like to call it) is interesting - you can stop and review the value of your purchases and consumer loyalties; essentially, what are you getting out of shopping at a specific store?

Like many things in life, there is value in stopping to think about why you do the things you do - the more questions you ask, the more valuable information you will receive about your patterns of behaviour and the reasoning behind your actions. Looking at your spending map can force you to ask "why do I shop here? What value do I get from this location? Why do I choose to spend my money at this store?"; if you can't find a good reason for yourself, you might find yourself with new criteria for your shopping list (closer to home, more sales, rewards points, supporting local economy, etc.)

So, what about my Spending Map? Here's where I spend my money:

Groceries and Home Essentials (cleaning supplies, etc):

• Loblaws.
  Pros: Easily accessible (close to my home). Earn PC points (have PC bank account and credit card) that can be used for free products. Decent selection of organic, healthy or environmentally-friendly products.
  Cons: Expensive. Always, always busy.
  
  
• Sobeys.
  Pros: Marketing ploys suck me in. Really nice layout. Store-brand products are the ones I grew up with; comfort with the brand. Doesn't seem to be as busy as Loblaws.
  Cons: Completely out of my way.
  
  
• Shoppers Drugmart.
  Pros: Earn Optimum points that can be used for free products. Method cleaning products available.
  Cons: Almost always more expensive than other stores. I never remember to bring my points card as it is separate from my bank/credit card.
  
  
• Bulk Barn.
  Pros: Good selection of sundries. Not paying extra for packaging/advertising. Could be using "student" discount from my expired student card. Lots of candy (not going to lie here).
  Cons: Lots of candy.
  
  
• Local Farmers' Markets.
  Pros: Supporting local economy. Good selection of seasonal produce. Neat heirloom products.
  Cons: Seasonal markets. Often fairly expensive.
  

Clothing and Footwear:

• Payless Shoe Source.
  Pros: Shoes fit my giant feet. Decent price for decent quality product.
  Cons: Completely out of my way and often in malls. Falling victim to BOGO, which isn't as good as it actually sounds.
  
  
• Target.
  Pros: Clean store. Really well-made products. Good value for dollar.
  Cons: Not even in my country (sigh).
  
  
• Wal*Mart.
  Pros: Cheap. Easy to find basics.
  Cons: Store is always busy. Supporting giant evil Wal*Mart.
  
  
• Loblaws (Joe Fresh).
  Pros: Basic styles, good for layering and simplistic look. Good price. Easy shopping as it is in the grocery store. Extra rewards points!
  Cons: Trying on clothes in the grocery store is really strange.
  

• Winners.
  Pros: Good value on expensive things. Nice selection of unique products.
  Cons: Difficult to sift through crap at times. Often completely incompetent staff. Bargain hunting can be addictive.
  

Miscellaneous (Dogs, Home, Car, etc):

• Local Pet Food Co-op.
  Pros: Paying the little guy. Personal service. Discount for repeat purchases.
  Cons: Absolutely none.
  
  
• HomeSense.
  Pros: Good random selection (sister store of Winners). Unique home decor ideas.
  Cons: Still somewhat expensive. Difficult to sift through crap. A little bit out of the way.
  

• Amazon.ca.
  Pros: Cheap price on books. Shipping is quick and decent.
  Cons: My boyfriend likes to spend all of his money here.
  
  
• Chapters/Indigo.
  Pros: Nice selection of products. Easy to access as the stores are virtually everywhere. Nice personal gift ideas. Good bargain section.
  Cons: Expensive. Subliminal pull of in-store Starbucks. Boyfriend spends all of his money here, too.

In looking at my spending map, I can see a few advantages and disadvantages to my patterns. On the plus side, I do a lot of shopping in the same place - which cuts back on wasted transportation costs and helps to streamline my chores. I also use my rewards cards - this customer loyalty bought me $70 in free groceries last week. Unfortunately, I fall victim to advertising and impulse purchases a lot, which makes it hard for me to go to the Big Box Stores.

What about you - where are your favourite places to shop, and why do you pick them?

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I'm taking a lead from Brip Blap and making a public declaration to eliminate my debt in one year's time. As I've mentioned in my financial goals post, our number-one priority for the next while is paying down our debts, either real or imaginary (as is the case with my possible debt repayment with a collection agency).

Paying down debts can be a complicated and almost overpowering process, especially when dealing with different interest rates and minimum payments. People tend to overthink the process and become so involved that it seems impossible to dig your way out of debt. The term "snowballing your debt" has become very popular in the personal-finance realm, and rightly so; by focusing on your highest-interest debts and paying them off first, you are able to minimize unnecessary payments and manage your finances in a really efficient way.

What's The Cost has a really fantastic Snowball Debt Calculator on their site, which is the source of the above image that maps our approximate debts. We will have over $1,000 in our emergency fund as of the end of November, which is the minimum I wanted in the account before we began aggressively paying down our debts. We are also going to remove our dogs from their insurance policy (see why in this post), which might be a risky venture but will free up another $100 a month for debt repayment. The $600 a month in debt repayment I had calculated is likely an underestimate, but it is enough that we can comfortably pay without digging ourselves further into debt - the rest is icing on the cake.

LOC - Line of Credit (10.6% for a balance of approx. $3,100)
By making maximum payments of $585 a month, we will have this debt repaid in May of 2008 (6 months)

CC - Collection Company (4% for a balance of approx. $2,500)
By making original payments of $5 and additional payments maxing at $590, we will have this debt repaid in September of 2008 (10 months)

WC - My Father's Personal Loan (no actual interest, but I would like to pay a bit more for a gift of thanks, balance of $2,500)
By making original payments of $5 and additional payments maxing at $595, we will have this debt repaid in February of 2009 (15 months)

DND - The Boyfriend's Parents' Personal Loan (no actual interest, but I would like to pay a bit more for a gift of thanks, balance of $1,000) By making original payments of $5 and additional payments maxing at $580.13, we will have this debt repaid by March of 2009 (16 months)

This is actually very nice to see; the handy chart makes our debt look simple gives us a good idea of prioritizing our payments. In addition, we may have other chunks of money to put towards the debt (work bonuses, wage increases and "extra" income) which will help speed up the process even more. Simply put, our debts will be repaid by next year.

One wildcard is the collection debt - I may have to pay all of this, maybe a bit more, maybe a bit less, or maybe nothing at all. As I have now filed a defense to the claim and it is being processed through the court system, we should find out about this in between 3-12 months (or something ludicrous like that). I want to plan for this debt anyway, because if I have to pay it I don't want our line of credit to be bumped right back where it came from. If we don't have to pay, that is money that can be used to pay back our personal loans, which would be fantastic.

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Wise Bread's Will Chen asked this question - what would you do with a million dollars (tax free)? Although a million dollars does not account for much these days, especially if it is in American funds, a financial windfall of this size would still present plenty of opportunity for a more stable, secure lifestyle.

Financial planning often revolves around frugality and trying to stretch every dollar to its fullest. Because there is such a significant focus on saving our money and getting the best deal, the concept of a cash windfall or too much money is rarely addressed. Because no one really plans for having more money than they need, there are often situations where a person will make frivolous purchases because he or she has no idea what to do otherwise.

Imagine if you won the lottery tomorrow? Would you blow your newfound wealth on a new home and a tonne of toys or would you feel guilty and keep all of the money with no intention of spending it? The key to managing financial success is finding a balance with your needs and your wants, but continuing to think responsible and intelligently about your spending. The following tips can help you manage your money in a situation where the need for a budget can disappear.

• Think About The Future. Remember that even though your financial situation has improved, your cost of living has not increased in a similar way. Think objectively - if you can now afford a new home, should you get one that costs three times as much as your current home and will be three times more expensive to heat and furnish? Will this financial windfall last as long as your mortgage payments? With every major decision you make, think about the consequences 1 year, 5 years, 10 years down the road and beyond.
  
  
• Save a Little. Your monthly expenditures have likely not increased to match your new income and you will have a little extra cushion to work with. Put at least 3 months (but ideally 6 months) of money to cover your expenses into a savings account in case of emergency. If you can, put a little more into your savings for retirement or other financial obligations that might come in the future.
  
  
• Spend a Little. You should not feel guilty about spending your money, especially if you have taken the opportunity to save for the future. When spending, you will get the greatest satisfaction from focusing on quality over quantity. If you've always wanted to take a trip, consider doing it sooner than later! If going back to school is your plan, there is no time like the present. Take your long standing goals into account and focus on getting the most enjoyment possible from your money - as they say, you can't take it with you.
  
  
• Keep the Rest and Stop Worrying. Keep the rest of your money flowing through your accounts and don't worry about it too much - spend what you need to spend and save what you need to save. If you have money management issues, consider working with a planner to develop a budget and financial strategy to suit your needs. By maintaining a large balance in your accounts you will generate passive income through your interest, or by investing your money you might have the opportunity to increase your investment substantially. The more you allow your money to work for you and the less you think about it, you will encourage yourself to continue living within your means and develop a substantial nest-egg in the process.
  
  
• Share the Wealth. Consider using your extra money to free up time for volunteering or donate a little to a cause that is important to you. Whether you use your money directly or indirectly to benefit others, you will feel better connected to society and create positive experiences for both yourself and others involved. See your money as an opportunity; an opportunity to do good in the world and an opportunity to further yourself and your beliefs.
  

Based on the above suggestions for maximizing financial success and taking into account My Personal Life Goals and My Personal Financial Goals, I can easily determine what I would do with a million dollars - of course, with a few unexpected curve balls thrown in:

1. I would build my sustainable/off-the-grid farm and "little green house" outside of the city, furnished and ready to go (down to $700,000)
2. I would fix up our current home (down to $650,000)
3. I would sell our current home (up to $925,000)
4. I would pay off our car lease (down to $906,000)
5. I would help my boyfriend finance his business - either now or in the future by putting money aside (down to $656,000)
6. I would utilize the "Couch Potato" investing method, with an expected return of approximately 10% annually, the interest essentially paying equivalent to my current wages (down to $306,000)
7. I would pay off our debts (down to $296,000)
8. I would build our emergency fund (down to $276,000)
9. I would "max out" our retirement savings (down to $216,000)
10. I would put a chunk of money aside for raising our family (down to $116,000)
11. I would donate a chunk of money to the rescue center where we adopted our Great Dane (down to $100,000)
12. I would send all of Chris and my parents on a vacation (down to $60,000)
13. I would develop and market my personal organization consulting business (down to $40,000)
14. I would finance our wedding and throw a fantastic party for everyone we know. This would be including a great honeymoon to Ireland, France, Greece and Italy (down to $15,000)
15. I would leave the remaining balance in my bank account. :)

My plan might seem like a lot of spending without a lot of saving, but consider the lowered expenditures once we live in our sustainable home - most groceries, our heat, hydro, water, etc. would be taken care of. In addition, we would have no mortgage payments and no car payments and I would no longer contribute to our RRSPs (just put money into a high-interest savings account and worry about taxes as I earn) Added expenses would include our health insurance (if I chose to quit my day job) and Chris' commute, which might be offset by his opening a business in the area of our home.

I also planned to invest enough that I could feasibly live off the interest for my own current salary - although it is modest, it is enough to get us by at this point and I think we would ultimately have less to spend in our ideal life. In my opinion, this is a good balance of spending, saving, investing, and essentially getting the most out of financial success. What do you think - how would you spend your million?

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In an ideal world, saving for retirement would be a quick and simple process that would ensure your security and livelihood well into old age. Unfortunately, our rising cost of living and decreased job securities has left many people in the dark about their retirement and in a position that makes saving downright difficult. In a situation where you may not have a lot of money to spend on your future, how can you afford to think about retiring?

Whether you intend to retire early (35, 34, 55, etc) or later in life, the entire premise of retirement is to quit working. While you will be requiring daily living expenses, you will be generating little to no income. Some people choose to retire quietly and some use this opportunity to live their wildest dreams; whether you're selling your home and living in an apartment or choosing to travel the world, you can do a world of good for your future self by planning for retirement as early as possible.

• See The Bigger Picture. Many people look at their current standard of living and get anxious about the idea of finding enough money to maintain that standard in the future. The first step in saving for retirement with limited funds is to realize that you will not need to live off the same amount of money and you will not have the same expenses in your daily life. Once you have retired, you may sell your home and move into a smaller place; you may need a car for work now, but will use it less once you no longer commute. Consider all of your daily expenses and how few of them will actually exist once you retire.
  
  
• Manage Your Money Now. Take this opportunity to get control of your finances - minimize your debt and develop a budget that increases income and decreases expenditures. Think about your priorities and what you actually need to lead a fulfilled life - is satellite TV a necessity or a luxury - you decide.
  
  
• Work Out a Savings Plan. Now that you've taken an opportunity to think about what you need to save and how much money you have to put away, you can begin to start your retirement savings. Consider your options - investing or savings accounts can give you an added bonus of extra passive income. Even the smallest amount of money per week can add up - instead of drinking two specialty coffees, put $10 into your savings account for $520 extra savings a year. Put $100 a week in savings for a total of $5200 a year, not including interest or other passive income.
  
  
• Look to Your Employer. Depending on where you work, your employer may have a retirement savings plan that allows you to put a portion of your income directly into savings, where the company will match a certain percentage in return. Although the concept of a long-term work pension is beginning to fade as employees spend less time with one company, many still offer assistance and often the plan is transferable in the event that you leave.

Most importantly, realize that your financial planning may be happening later than anticipated but that you are still able to make a positive impact on your post-retirement livelihood. By assessing your current needs and anticipating those for the future, you can maximize your savings and be well on your way to a financially secure retirement.

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Many young people begin their adult lives with goals and dreams for their future, often failing to realize that simple steps taken in their twenties can allow them to achieve their goals quickly and as painlessly as possible. Just as good money management should begin as early in a person's life as possible, young adults should begin planning for their future as soon as they can. Proper money management and financial skills developed in a person's twenties can directly impact their quality of life throughout adulthood and into retirement.

Unfortunately, many people in their twenties are presented with larger amounts of money and increasing debts and responsibilities, often without being given the appropriate tools to manage their financial situation. Simple processes like debt management and retirement savings are often overlooked because the concept is difficult to grasp and the consequences are not immediate. Nonetheless, you should begin to plan for these common issues as soon as possible to minimize financial impact and increase your own knowledge.

1. Plan for Retirement. The concept of a company pension died with the introduction of "transferable skills"; for many young people, the idea of working for one company for your entire career has gone the way of the dinosaurs. While the idea of job- and career-hopping throughout your adult life presents many positive aspects (career advancement, flexible work environment, more experience) it also shifts the responsibility of financial planning back on the employee. If a 22-year old puts $100 per pay into a registered retirement savings plan or similar savings account that gives 4% interest, he will save over $2700 a year for his future retirement - meaning over $89,000 for a retirement at 55 or $116,000 for a retirement at 65 years of age. By increasing these payments as salary levels go up, the savings become even more significant.
   
   
2. Pay Off Loans. Most new graduates are faced with high levels of debt accrued in order to obtain their education. While it is easy to ignore this amount, it is very important that a young person aims to be debt-free as quickly as possible to eliminate accumulating interest and improve their savings. Similar to saving for retirement, it is easy for a young person to pay down a significant portion of her debts as she has limited responsibilities (i.e. a family, a mortgage, etc) and an increasing level of income. Consider consolidating loans for one easy (and hopefully smaller, if you choose one with a lower interest rate) payment. Put as much of your expendable income into paying down your loans as quickly as possible.
   
   
3. Save! After loan payments and retirement planning, developing a nice financial cushion is very important to financial management in your twenties. A time will come when this money needs to be used - either a downpayment for a house, the purchase of a new car, payment for a wedding, or a variety of other personal reasons. In putting as much money aside as possible, you are allowing yourself to live life in a way many people cannot - you will escape the concept of paycheque-to-paycheque and will rarely feel the stress of emergency situations which you can barely afford.
   
   
4. Develop a Budget. Because responsibilities are low and income is high, now is a great time for young adults to begin focusing on a budget. Budgeting money allows for financial planning for both short- and long-term goals - whether it involves debt repayment, saving for a house, or simply living a better lifestyle. Make a list of income and a list of expenditures; then simply focus on increasing income and lowering expenditures while balancing any savings and debt payments that need to be taken care of. Starting a budget in your twenties will make money management a breeze when children and house payments enter the picture.
   
   
5. Improve Your Credit. In addition to lowering your debt, you should spend your early adulthood developing and maintaining positive credit ratings as they will impact your life far into the future and a negative score can be difficult to erase. As tempting as they may be, try very hard to avoid credit cards if you have any problems with spending sprees or money management. It is important to create credit, so consider a pre-paid credit card or be very diligent about paying down your monthly balance consistently and completely. Also consider purchasing items on a payment plan, which will help you to improve your credit even if you do have the money up-front and it will cost slightly more to pay with installments.

Financial planning in your twenties boils down to two things - managing priorities and setting yourself up for a strong financial future. It may be worthwhile to attend a financial course or simply speak to older adults you know who have good money management skills. While you may have just left school, education should continue well past your teens and twenties, and financial planning costs very little but yields a high return.

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Creating a "Financial Picture" is a very useful practice in realizing what your expenses are and how much money you actually have. An effective money picture will show you where you can cut unnecessary costs as well as letting you see new and dynamic methods of shifting your money around to better benefit your needs (as opposed to your "wants").

In looking at your picture you will be able to properly assess the way you spend your money from an objective standpoint; rather than looking at expenses on an individual basis, you can lump your daily costs into categories like entertainment, food, transportation, etc.

What exactly should you do with a "Financial Picture"? Compiling this information may be difficult at first, but it will ultimately prove very useful in giving you a clear picture of your financial situation and areas in which you need to improve:

1. Go Over Everything - take each expense and ask honest questions about your spending habits; why do I spend this money? What value do I achieve from this expense? Is there any way to eliminate this expense? Is there any way to decrease this expense?
   
   
2. Eliminate or Decrease Expenses - once you have answered the above questions, you should have a list of ways to eliminate or decrease some or all of your expenses (ranging from immediate to long-term). Take first steps to begin making these changes and track your progress as you find more and more money left in your account.
   
   
3. Increase Income to Decrease Debt - as I've said before, the two tips to having a comfortable money situation is to increase your income in addition to decreasing your expenses. Think of ways you can get more money for your valuable time; this might mean asking for that promotion or rethinking your company's marketing scheme. Either way, you will be able to look at what you really need to get by in life and use that as a guideline for how much money you need to be comfortable.
   
   
4. Keep on Trackin'. Every month or so, go back over your "Financial Picture" and see where changes have occurred. Make a point of following up on areas that need particular attention (i.e. accruing debts) and continue to watch for bad spending habits or unnecessary expenses.
   

I have realized that despite my recent financial changes in joining accounts with my boyfriend, there are still areas in which I could better manage my finances. Our monthly inflexible expenses include things like our mortgage, car payments, heating and utilities, etc. Our flexible expenses include things like our groceries, phone bill, transportation costs, and so on.

Our general combined monthly expenses are $3022.64, not including our hydro or water bills (bi-monthly), property taxes and any adjustments that would be made. For our high amount of expenses, we have what I consider to be a modest income for a DINK (Dual Income, No Kids) Household. Because of this, we do need to think carefully on where we spend our money and how we can be as frugal as possible.

Where Can We Cut Expenses?

• Increase Debt Repayment amounts to avoid interest and long-term repayment. This seems counterproductive, the concept of spending more money to spend less money, but spending more to eliminate our debts as early as possible will mean a brighter financial future. We have decided to put anything over $1000.00 from our joint account (after all payments each month) against our debt, which could mean we might repay all of our loans in 6-9 months.
  
  
• Lower Entertainment Costs. Because we do not have satellite/cable TV and we rarely go to movies/shows/bars/restaurants/etc, our "entertainment" costs are fairly low as-is. I do not want to stop our occasional case of funky beer or our few-and-far-between dates to the cinema, but we can definitely shop around for better deals on our phone and internet services. Right now we pay approx. $100.00 for long distance, a basic phone line and high speed DSL - we will be looking into more modest prices from different companies once our phone wiring is up to code (and the repairs are currently covered under our phone plan).
  
  
• Get Rid of Pet Insurance. Although this is listed as an "inflexible" expense, it is one that can be eliminated easily - once we build up a security emergency fund to cover any unfortunate illnesses or accidents. I have decided that we will stick with this until our fund is complete - at the very latest, 2 years of insurance total.
  
  
• Lower Grocery Expenses. This one is difficult, especially when we try to eat locally and organically as often as possible. In order to try and lower our grocery expenses, we will be putting in a small garden (hopefully this coming spring) and taking advantage of preserving our food whenever we can.
  
  
• Ix-nay Transportation. For us, this includes car payments, bus tickets and gas for the car (all maintenance and repairs are covered by our lease agreement). If possible, we would like to pay off the car sooner than later (we have a 5 year lease and the interest is about 1%), but we would still be covered by our warranties for the full 5 years. Unfortunately, with both of our schedules being day-and-night, we cannot really change the bus/car combination of driving - unless I manage to make a career out of blogging and writing, which is the ultimate goal and will free up a lot of this expense.
  
  
• Pay Off Our Mortgage. Unfortunately, this is a huge expense and is essentially unavoidable at this time. In an ideal world, after paying off our debts and putting money aside in savings, we would use our extra income to pay down our mortgage. The resulting lower bi-weekly payments would mean more money in our accounts, which in turn would mean more to put against our principal, and the cycle continues. We might also consider taking in a tenant in order to increase our income and give us a bit more to put against our principal.
  

Where Can We Increase Income?

• Build Our Emergency Fund. This will make life seem a little bit sweeter and easier to handle in the event of an emergency. Plus, it will also make us think twice about "extended warranties" and other scams that are in place for people who cannot pay for repairs or replacements in the unlikely chance of a problem.
  
  
• Get New Jobs. For me, this goes hand-in-hand with the concept of generating passive income. Although I am currently employed full-time at an office job, I was not designed for this environment; instead, I hope to shift my career in two similar directions. One, I hope to hold a part-time job freelancing and writing for my blog. Two, I hope to start up a freelance/consulting company for personal and office organization as well as human resource management. While I would be losing a great team of coworkers and my health benefits paid in full, I would like to think that the flexibility involved in the alternative would be better overall.
  
  
• Generate Passive Income. As I said, this goes hand-in-hand with the above point. I hope to begin generating passive income through my blog posts and articles, as well as through some smart money management and hopefully investing in the future. The less I have to think about my money coming in, the better it will seem and the more I can focus on the quality of my life rather than the paycheques and bills.

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Bad credit can happen to the best of us - it is not impossible to find ourselves in situations beyond our means and end up with a debt that will effect our credit scores in the future. As painful as the situation may be, it is crucial to realize that bad credit is not the end of your financial future and that there is room to grow beyond your current situation.

When faced with a situation that has very unfortunate consequences, it is easy to focus on negative statements that affect your outlook and also your actions. Below is a list of common thoughts that might run through your head if faced with bad credit, as well as some simple ways to turn your thinking (and your life) in the right direction.

• "If I have bad credit now, I'll have bad credit forever". Not true! If you are currently indebted to someone but it is not listed on your credit score, you will be able to address that debt and it should have no effect on your "credit" at all. If your credit score itself is below standard, this is not a permanent state. With hard work and diligent payments, you will be able to improve your score in very little time. Address all of your debts and make payments using the "snowball" technique - in addition to your minimum payments, put all of your extra available money into paying off your debt with the highest interest rate. When you have finished making payments on that debt, take the money you were using to pay off the first loan and put it against your second-largest interest debt. Continue this process and slowly but surely you will eliminate your debt.
  
  
• "If I have bad credit, I am clearly unable to handle my finances". Again, not true! There are many reasons why a person might have obtained bad credit, and only a few of them are because you are unable to handle your finances on the whole. Also, most of us do need help handling our money, and looking for help is nothing to be ashamed of. Instead of relying on quick fixes and short-term band-aid solutions, invest in a money management course or look to increase your income in order offset your debts.
  
  
• "If I have bad credit, I will never be able to buy anything again!" Businesses are all about making money, and by limiting your status as a liability you will be able to continue their services. I cannot stress enough the importance of eliminating your current debts before even thinking of accruing new ones - you need to be aware of and you need to end the cycle of poor money management now. Once you do have your money under control, you can look to take advantage of loans that require a larger down deposit or a higher interest rate. These loans will also help to improve your credit rating, so long as you pay off your balance as soon as possible and always maintain good standing with your creditors.
  
  
• "If I have bad credit, I will end up completely broke because all of my money will be used to pay off my debts". Luckily, if your wages are garnished, there is an obligation by the creditor to only take a certain percentage of your wages in order to allow you to continue with your regular daily expenses. Likewise, it is unrealistic to expect that you will put every drop of money into your debts and forget any other responsibilities - this method of thinking will only get you into more trouble with your money. The best option is to create a budget that clearly outlines your expenses. After limiting your expenses to the bare essentials (this might mean no takeout or satellite TV), you can put a bit of money aside for savings and the remainder aside for your debt repayment.

While life with debt is an unfortunate and very probable reality for many people, it is not the determining factor in your financial success for the rest of your life. The most important way to handle your bad credit is to address its source, be aware of any problems you might have in dealing with money, and continue to keep your head up in hopes for a brighter financial future.

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Owing a debt, or several debts, can have a very negative impact on your emotional well-being. The combination of less-than-happy emotions can leave you feeling drained and incapable of handling life's regular trials and tribulations. While debt is a regular occurrence for many people, we cannot let it get the best of us.

The trick to handling your emotions and rising above the anxiety of debt is to be aware of how you feel about your financial situation and using these tips to help you cope:

• Debt Causes Stress. Owing someone money makes you stressed because you are constantly thinking about the guilt and anxiety involved with your debt. There is no way to eliminate stress, and small levels of stress are important in our lives to allow us the knowledge of prioritization and deadlines. If you begin to feel physically or emotionally ill, you have let your stress take over your life and will become less productive and efficient as a result. In order to better manager your stress, use a two-pronged attack. One; get a handle on your financial situation, whether it involves a plan for regular payments or speaking to a professional about debt management. Two; lower your stress levels by doing things that you enjoy - have a bath, meditate, take time for a walk with your loved ones, or do a variety of frugal but beneficial activities that will make you realize there is more to life than money.

• Debt Causes Worry. There are many reasons why you might become worried about the money you owe - maybe you feel you are unable to pay it, maybe you feel like you'll never get out of debt, or maybe you feel like you will never have control over your finances. The quickest and most efficient cure for worry is to face your fear and reframe your thinking in a positive way. Instead of focusing on how you might never be able to pay off your debt, think of ways that you can improve your financial situation in order to better address your remaining balances. Take small improvements and goals and celebrate them as if you were now debt-free; remember, every little step that you take can be one step closer to eliminating your debts!

• Debt Causes Anger. Whether you are angry at yourself or angry at the situation, this emotion is the least productive of all negative feelings about debt. Being angry at yourself will not help the situation - beating yourself up about past mistakes cannot change your current place in life, and being angry about the debt itself will never make it go away. In order to manage your anger, consider diffusing it by talking to others or even using physical exercise as a means of "blowing off steam". More often than not, your feelings of anger are just a mask for a deeper emotion - often worry or frustration.

• Debt Causes Frustration. An ongoing debt is possibly one of the most frustrating experiences in life - frustration is the result of not seeing improvement or movement towards a goal. If you constantly feel as though you are digging yourself deeper in debt, you will inevitably become more and more frustrated. To avoid getting to this point, take yourself away from the situation and use even the smallest of goals to mark your progress. You must learn to adapt your thinking to focus less on immediate gratification and more on long-term financial success.

Whether your debt is small or large, the emotional impact of financial dependence can be overbearing and difficult to change. By being aware of your emotions and focusing on promoting a controlled, organized and positive outlook, you will be able to better manage your debt and any other curveballs life throws your way.

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Proper money management should begin as early as possible; many of us began to understand our finances at a time when we had to, as opposed to a time when we had the opportunity to develop good habits and look to avoid bad habits before they start. Children may have a difficult time grasping the concept of debt and long-term savings - a simple savings account and allowance system is enough to give them the basic tools for using money.

Teenagers, on the other hand, are in a perfect position to develop the skills needed for them to be financially secure and successful later in life. A good portion of our advertisements and marketing techniques are aimed at teenagers - a group of people who often have low debts and expenses combined with a decent level of income. Not only is it a great time to develop good habits, it is crucial to teach a teenager how to avoid debt-traps and other money pitfalls that occur with the accumulation of extra cash.

Many people shy away from frank, honest money talk with their teenagers because they are uneducated on the topic themselves. Others have their own financial problems and feel they are the last people who should be instructing a child on how to manage their money. Instead of looking at the negative elements of this situation, parents should look at it as an opportunity for financial education and growth for all parties involved.

How do we begin to properly educate a teenager on wise money habits?

• Consider Bringing In the Professionals. Many schools, co-ops, community centers, etc. offer financial planning courses for free or at low-cost. Consider enrolling in this course with your teen in order to begin on the same page and give them the opportunity to take control of their education. This is especially useful if the parent requires financial education thems