Good money management is not about willpower. It’s about how daily decisions and spending habits affect your finances
Here are some good habits that are practical and realistic for people rebuilding after a bankruptcy or consumer proposal.
Spending and Shopping Habits
Make A Plan Before You Spend
Unplanned spending is the most common cause of budget problems.
- Always go shopping with a list
- Decide how much you are willing to spend before you go
- Avoid browsing stores or websites without a purpose
Watch For Sales — But Only Buy What You Need
Use flyer and price-comparison apps to support planned purchases, not impulse buying.
- Sales save money only if you planned to buy the item anyway
- Buying something you don’t need because it’s “on sale” is still spending money
Postpone Non-essential Purchases
Delaying purchases reduces emotional and impulse spending.
- Wait at least 24 hours before buying non-essential items
- For larger purchases, wait a week
- If you still want it and it fits your plan, buy it intentionally
Skip This, Get That (Trade-offs)
Looks for ways to cut back on small dollar items that add up by finding cheaper alternatives. This can help you save money for other priorities.
- Daily coffee shop drinks → Make coffee at home and bring it with you
- Takeout lunches → Pack leftovers or simple meals
- Brand-name groceries → Store brands or generics
- New items → Buy used or refurbished when possible
- Convenience snacks → Buy larger packs and portion them yourself
Be Aware of Emotional Triggers
Spending is often emotional, not logical. Recognize your triggers so you can pause before spending including:
- Stress or anxiety
- Loneliness or boredom
- Feeling deprived
- Wanting comfort or reward
Money Management Habits
Automate What You Can
Automation reduces missed payments and stress
- automate bill payments
- automate savings transfers
- pay yourself first for necessities, not wants
Read Your Bill Statements Every Month
Reading your bill statements each month helps you:
- Catch errors or charges that don’t belong to you
- Notice rising spending before it becomes a problem
- Confirm payments were applied correctly
- Avoid missed or late payments
Review And Adjust Regularly
Good budgeting or money plan habits include regular check-ins.
- Review your Money Plan once or twice a year
- Adjust for changes in income or expenses
- Increase savings when cash flow improves
- Make changes early if things feel tight
Credit & Borrowing Habits
Do Not Use Credit For Everyday Purchases
Avoid using credit cards or loans for:
- Groceries
- Gas
- Clothing
- Entertainment
- Utilities
If you cannot afford everyday expenses without credit, your Money Plan needs adjusting.
Use Credit For Payment, Not Debt
If and when you have access to credit again:
- Charge only what you can pay off in full each month
- Never carry balances for convenience purchases
- Interest makes everything more expensive
Never Use Debt to Pay Debt
Avoid:
- Using one credit card to pay another
- Taking payday loans to cover bills
- Borrowing to get through the month
This is how debt problems restart.
Build a Bigger Down Payment
When borrowing is unavoidable (such as for a car or a home), the size of your down payment matters.
A larger down payment:
- Lowers your monthly payments
- Can result in a lower interest rate
- Reduces the amount of total interest you pay over the life of the loan
- Improves your chances of approval
Don’t borrow the down payment and use options like the Tax-Free First Home Savings Account