Paul Bickford
Northern News Services

Hay River (Nov 25/02) - If you want to take control of your finances, creating a budget is a good place to start.

"I would say number one is to budget what your income and expenses will be," says Hay River chartered accountant Tod Ashton. "Determine what you have left over for spending and don't overspend using credit."

"You know what your income is. You just have to make sure that your expenses don't exceed that income."

The accountant notes everybody budgets to a certain extent, even if it's just in their heads. But, he says, "It's not good enough if you're continually falling into debt."

Credit is also so readily available that people often spend money even when they don't have it, he says.

"It seems that the mentality for a lot of people has changed. I think, in the past, you bought something when you had the money to pay for it. And now it's going the other way in terms of, 'I'll buy it now and I'll come up with the money to pay for it later,' especially around Christmastime. Now, you find people racking up credit cards and taking months and months to pay them off."

Ashton says obvious advice to take to heart is don't buy things unless you have the money to pay for them. "It's as simple as that."

If a person uses a credit card, it should be paid off every month, he adds. "It's the highest interest you pay. And quite often, if people don't pay them off every month, it just continues to build up on them."

Ashton also recommends people get professional financial help, especially around tax return time to take advantage of all the deductions that are available.