More and more North Americans are living paycheque to paycheque; saving less and falling further behind in meeting their retirement goals. The Canadian Payroll Association (CPA), conducted their sixth annual survey on Canadian employees, and found that more than half of Canadian employees report that it would be difficult to meet their financial obligations if their pay cheque was delayed by a single week. In addition, more than a quarter of respondents said they probably could not come up with $2,000 over the next month if an emergency expense occurred.
John Ventura’s book, Beating the Paycheck to Paycheck Blues, explains the key steps to living on less and successfully beating the paycheck to paycheck blues:
A positive attitude – understand the importance of remaining positive and starting to think rationally about money.
Budgeting – understand how you spend your money. Record your various expenses every day for a month and then examine your spending history.
Know how to make more money – Identify ways to improve income.
Know your options if you are in debt or facing bankruptcy – know your options ahead of time. To remedy the problem in time, you must recognize the signs of impending financial woes.
Know how to re-build your finances after serious money troubles – Learn how to live on little to no credit. Re-establish yourself financially by proving yourself trustworthy with money.
How can payroll professionals help?
Payroll professionals can assist employees in setting up their contributions to a savings plan or retirement program.
Silvia Matheson / Payroll Administrator / PEO Canada