Budgeting is an incredibly valuable tool that anybody can master. Knowing where to find the right resources and strategies can help set you up for success.
Here are 9 tried and true ways to help you so you can jump start your savings.
1. Sleep on big purchases
Take a week to think about any purchases you don’t immediately need. Will this purchase throw off your savings? How will this benefit your day-to-day life? Is the benefit worth the cost? If you’ve forgotten it after a week, it’s a pretty good indicator you don’t need it.
2. Stick to a lower credit card limit
Credit cards with high limits are easy to rack up and hard to pay down. Keep to a lower credit limit and pay it off frequently to build healthy habits.
3. Budget to zero
Budgeting to zero is a great way to work savings into your and create an emergency fund, allowing you to be flexible when faced with an unexpected expense. Essentially, it’s balancing your budget to zero after savings and expenses are considered.
4. Try a no-spend challenge
This is sometimes referred to as a spending freeze, a spending fast or a zero spend challenge. Whatever you call it, the idea is the same: a commitment to not spend money on anything that’s not a necessity.
Get started by identifying what qualifies as a necessity and how long you’re going for. Make it fun by challenging your friends and seeing who can save the most.
5. Stop paying for fees
Are you paying too much on subscriptions you don’t use? Unsurprisingly, all those ‘only $10 a month’ fees add up quickly.
It’s also a good time to review your banking. How much are you paying in monthly fees and how much are you paying on top of that in transactions? Consider switching to a free account like our and you could save up to $200.00 per year (based on average monthly fees on products with comparable features at major Canadian banks as at October 25, 2022).
6. Plan your meals
Planning your meals and sticking to a grocery list is an easy way to keep money in your pocket. By planning what you need for the week you won’t overbuy items that will go bad in your fridge
7. Pay yourself first
Set up automatic transfers to move money into your savings account every payday. By contributing small and frequent amounts to your Tax-Free Savings Account or Registered Retirement Savings Plan your savings will be protected from everyday spending.
8. Compare unit costs
Ever wonder how to save money on everyday essentials? One way to do this is by reviewing the per unit costs against other options. Sometimes the price tag will include a unit breakdown allowing you to compare your favourite items easily. You may be surprised at the savings you can make during your shopping trip.
9. Connect your spending to your work
Here’s how to do it: Calculate how much you get paid per hour. Then when you’re buying something, figure out how many hours of labour it would cost you. For example: the shoes you want aren’t $100. They’re 3 hours 38 minutes worth of work.
Thinking about your purchases in this way can be a simple way to reframe the way you view money.
Bonus Tip: Treat yourself when you reach your goals
Budgeting isn’t just about discipline. It’s a tool to help you reach your goals, to do what you want to do, live the life you want to live.
