Let's face it, creating a budget is something thing most people dread. Many Canadians think creating a budget can be time consuming and difficult to follow. However, having a monthly budget is freeing and helps Canadians create a path to financial success. Budgeting, like any other discipline, takes practice, continuous effort and time to master. So the question remains, how do you make a budget? House of Cars is here to help!

The End Goal:

When you create a budget, and follow it, you'll be enabled to do many things, including: cover your daily life expenses, pay off your debts, save for the future, and enjoy your money. Before even starting to make a budget, the first thing you need to do is set some financial goals. This will serve as your guide throughout the process. Some examples of financial goals include: build an emergency fund, get out of credit card debt, improve your credit score, buy your next car or pay off student loans. Once you've identified your goals, you'll want to allocate funds from your paycheque to meeting them.

How To Start Making Your Budget:

Once you are ready to start working on your budget, list and add up your total household income from all income sources: part-time or full-time job, rental property income, side hustles, etc. Once you have that total, it’s time to take a look at your total monthly expenses. You'll want to look at things like: your mortgage or rent, utilities, car payments, insurance, food expenses, miscellaneous spending, etc. and make sure your expenses are below your income. Now it's time to add some of your financial goals to your budget by following the 50/30/20 rule:

• 50% of your income for basic needs: rent/mortgage, food, utility bills, insurance and childcare
• 30% of your income for your goals: travel, entertainment and dining out
• 20% of your income for your savings: investments, savings account, building an emergency fund, etc.

Sometimes you can't follow the 50/30/20 rule to a T, and that's okay. A very important rule when budgeting is always making sure these four key needs are covered: food, shelter, transportation and clothing.

It is crucial to first make sure you have money for these four areas of your life and then you can allocate the rest of your income to other areas such as paying off debts or saving.

Not Sure What To Do? There's Help:

We pride ourselves in our robust credit rebuilding program. We want every House of Cars customer to leave our dealerships with a better understanding of their credit, and how they can leverage their credit to help with things like car loans, credit card bills, etc. Our financial services department also offers plenty of amazing offerings to help you get on the right track to following your budget. We offer debt and credit consolidation, cash back services and so many more great financial tools to help you pay off those high interest bills and focus on allocating your money to the right places. Did you know that by consolidating your high-interest credit card bills with your next car loan will lower your overall monthly payments? This means more money in your pocket to allocate to your financial goals!

Making Your Budget Work:

By following these four important steps, you can make your monthly budget work for you:

1. Cover your four key pillars first (food, shelter, transportation and clothing)! Always make sure these are covered before you even think about saving
2. Once your budget it set, stick with it!
3. Always spend less than you make! If you have money leftover each month, you're in a great position!
4. Use the 50/30/20 rule to build your budget (50: needs, 30: wants, 20: savings)!

Next Steps:

Did you know that you can actually buy a car with no credit?

We get a lot of questions about buying a car in Canada with no credit. There are actually a few options to consider:

1. Save up for a down payment: One way to increase your chances of being approved for a car loan is to have a larger down payment. If you can save up enough money for a significant down payment, it may be easier to secure financing from a lender. At House of Cars, we have over 20 different lenders, meaning we can offer you more financing options if you have no credit.
2. Get a co-signer: Another option is to ask a friend or family member with good credit to co-sign for a car loan. This can help you get approved for financing, but it's important to remember that the co-signer will also be responsible for the loan if you default.
3. Look for a dealership that deals with no-credit car loans: Some car dealerships, like House of Cars, offer financing options for people with no credit. However, other dealerships may give you higher interest rates and less favorable terms than traditional car loans, so it's important to carefully review the terms before agreeing to any financing. House of Cars offers plenty of solutions for individuals with no credit, with flexible repayment options. e also offer credit rebuilding programs to help you get better credit and more financing options.
4. Consider alternative financing options: Other options to consider include leasing a car or looking into financing through a credit union or online lender. These options may be more flexible and offer lower interest rates than traditional car loans. House of Cars has more financing options than any other Alberta dealership, meaning we can get you approved, no matter what!

It's worth noting that regardless of which option you choose, it's important to do your research and shop around to find the best financing option for your needs.