Your First Place
On-Going Expenses
These are your month to month expenses that you will need to pay to “keep the
lights on”. Page 24 has a template that you can fill out so that you can estimate
your on-going monthly expenses. This list is also online at:
http://www.fcac-acfc.gc.ca/Eng/forConsumers/lifeEvents/movingOut/Pages/
StartUpE-Grillede.aspx
This could be a good chance for you to decide between your needs vs wants.
If you haven’t already thought about it, you may want to look into insurance. For
your home, there are two types of insurance.
Contents Insurance. This covers your possessions in case of damage, fire or
theft
Liability Insurance. This covers the cost if you accidentally damage the
property of your landlord or your neighbors, or if someone is hurt on your property
and decides to sue you.
You can talk to an insurance broker to decide whether you need this insurance
and what the cost would be.
Identify Your Needs Versus Your Wants
Whatever the type of budget you are working on, you need to understand the
difference between your needs
and your wants. This is a
crucial step in preparing to live
within your budget.
Need. Something you must
have, such as shelter, basic
clothing, food or contents
insurance.
Want. Something you would
like but do not need, such as
cable TV, designer clothing or
eating out every week.
In this case, your main need is
Photo credit Keith Williamson via Visual Hunt CC BY
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