Are you living paycheque to paycheque?

If you're living paycheque to paycheque, you're not alone. A poll commissioned by the Canadian Payroll Association released last week found that 57 percent of respondents could not deal with a one week delay in their pay. That figure jumped to 63 percent among workers between 18 and 34 years old. For single parents, it jumped to 74 per cent.

These numbers are a bit staggering to say the least. Most consumers know that they should be saving money and reducing debt. So how do you know if you're teetering on the edge of financial disaster versus simply needing to do a little belt-tightening?

I recently read a great article by Michele Lerner from Investopedia that puts this all into perspective. I thought I would share with you a few key indicators that may put you in the category of imminent financial trouble:

Late Fees? If you're consistently late on paying your bills, it may be time to re-evaluate your budget. Not only are you potentially affecting your credit score, this may cause your creditor to raise your interest rate. Your credit score is directly related to the low mortgage rates available today; great credit = low mortgage rates.

Can't Pay All of Your Bills? Are you deciding each month which bills to pay and which one's to ignore? If you're making payments each month on your credit cards just to stop the harassing phone calls from creditors, ensure you have enough to make your monthly mortgage payments. You need a roof over your head to at least start your morning right before work.

Making The Minimum Payments on Credit Cards? As important as it is to make the minimum payment on your credit cards, financial experts know that the minimum payment is a key indicator of financial distress. Re-evaluate your budget and cut your spending where applicable to get back on track.

No Emergency Savings? Financial advisors recommend amassing six to twelve months of savings to cover expenses. The reality of it is that most individuals in today's society are not in any situation to achieve this. If you can start saving for that unexpected drop in income, job loss or emergency, you'll be much better off.

Maxed Out Credit Cards? Are your cards at their max, or even over their limit? This is a sign of financial imbalance. Under no circumstances should you be applying for additional credit cards to pay off the existing, you're well on your way to a financial meltdown.

While all of these examples outline financial instability, it's not too late to remedy the problem. The absolute first step is to know exactly what you owe. From there, you will be able to see where your money is going each month. Pen and paper works fine, spreadsheets are even better. Contact me today so we can start with a plan of action and get your finances back on track. 

As always, I encourage you to contact me if you have any questions with your current mortgage or are looking for one. Please find me on facebook at Jason Nesseth l Mortgage Specialist l British Columbia and on twitter @jasonmortgages.

"Working with you for the life of your mortgage!"