Budgeting That Works: From Wish List to Reality

This blog post is part of Money Mentors’ Financial Literacy Month 2025 series, Humans of Money Mentors. To find out more, visit our page Financial Literacy Month 2025.

To kick off Financial Literacy Month, Tim St. Vincent and Manraj Waraich are joined by Crystal Lynch, one of our financial counsellors at Money Mentors, to talk about one of the most important money skills there is: budgeting.

Half of Canadians don’t have a budget, and many who do aren’t tracking where their money actually goes. As Tim puts it, “A budget says, this is how I wish I was spending my money. Tracking expenses says, this is how I really am spending my money.” The magic happens when those two ideas meet.

Why Tracking Matters

A budget without expense tracking is like a map without a compass; it tells you where you’d like to go but not where you actually are. Tim reminds us that even small untracked purchases can quietly eat away at your finances.
“Lose track of just five dollars a day,” he says, “and that’s over $1,800 a year gone.”

That awareness is what separates wishful thinking from genuine financial control.

Start Small and Build the Habit

For Manraj, the key to success is starting simple. “When you’re new to budgeting, begin by tracking just a few spending categories,” she says. “Once that feels comfortable, expand.”

She’s quick to point out that you don’t need to wait for the “perfect time” to start. “My top budgeting tip is to just start; create the budget and begin tracking. Take that first step.”

Facing Challenges and Finding Balance

Crystal admits she struggled at first with the idea of tracking every dollar. Her solution? Macro-chunking her spending into broader categories that were easier to manage. She also introduced what she calls “financial fasting.”

“Take one month where you spend only on essentials,” she says. “It helps you reset habits, feel your spending impulses, and build real discipline. Discipline equals freedom.”

Tim, meanwhile, knows his own weakness: impulse shopping. Whether it’s a new gadget or a grocery aisle splurge, he’s learned to set boundaries by leaving credit cards at home and only bringing the cash or debit amount he plans to spend. “Know your triggers,” he advises. “If you can recognize what sets off impulse spending, you can plan around it.”

A Simple Equation for Success

Budgeting isn’t about restriction; it’s about awareness and empowerment.

When you track where your money really goes, you give yourself the ability to make choices that match your values and goals. Whether you’re starting from scratch or fine-tuning your system, the key is to start, track, and stay curious about your habits.

Looking Ahead

Stay tuned for next week’s Humans of Money Mentors conversation, where Tim and Manraj will be joined by another team member to explore Grocery Savings, sharing simple, practical ways to stretch your food budget without sacrificing quality or enjoyment.

Have questions?

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Call 1-888-294-0076 or fill out this form to speak with a certified financial counsellor. It’s free for all Albertans.