7 tips for saving

7 tips for saving

Does money simply slip through your fingers? See the 7 tips for saving and take control of your wallet.

Are you a spendthrift?

  • You never seem to set aside money for retirement or special projects
  • Your paycheck disappears as soon as it’s deposited
  • Savings? What savings?

If these three statements ring true to you, it may be time to use strategies (painless) to help you put money aside.

1. Make it a priority

It takes more than just a desire to save. You have to take action!

How? Opt for pre-authorized transfers. Every month, money will be automatically transferred to your savings account.

Even better, invest in an RRSP and TFSA, both of which are very tax-friendly.

This savings solution will let you save effortlessly and you’ll get used to having a little less spending money in your chequing account.

2. Make a budget

Alone or as a couple, your detailed budget is a great way of seeing where your money goes every month.

For many of us, money spent on groceries is a significant chunk of what we spend every year. The shock of what you spend on groceries, for example, can have a positive impact. Circulars will become more interesting…

Respect the priorities you have set and spend within your means.

3. Cut the non-essentials

The small amounts saved every day will pay off in the long run, like bringing coffee from home in a thermos instead of treating yourself at the corner coffee shop.

There are also environment-friendly options such as giving your time instead of buying a gift that will end up in the back of a closet somewhere.

Use a budget to cut where you overspend and use your imagination.

Instead of going to the shopping mall, why not go for a walk in the park? Why not go to the library instead of the book store? Why not brown-bag your lunches instead of going to the restaurant?

4. Do you get your money’s worth?

Credit card interest rates, telephone, television and Internet service packages, bank charges, auto and home insurance, etc.

It can sometimes be worthwhile to take a bit of time every year to review what you need and then shop around. Your motivation? To save all year long!

5. Spend smart today to spend even smarter in the future

To become good at saving, your relationship with money has to change. Instead of seeing it as a way to buy what everyone else wants you to buy, money should be regarded as a means of reaching your long-term goals.

Don’t get caught up in consumerism, media pressure and keeping up with the Joneses. Stay your course to make your dreams a reality!

6. Increase your income

There’s no magic recipe for increasing your salary! Additional income can only come from a bonus, a promotion or a new job with better pay.

To boost your savings, other sources of income can be added, such as selling used goods using the classifieds or getting rid of your second car, where possible.

Does a garage sale this summer sound interesting? It might really pay off!

One thing is certain, don’t count on a big inheritance from a mysterious aunt you never knew you had.

7. Have a little fun

Staying motivated and on course with your saving plan doesn’t mean you have to deprive yourself either.

Take some money from your budget and spend it on leisure activities and day-to-day fun.

Get going!

Consult your advisor. He or she will help you prepare a savings plan and choose the right investments for you.

Note: This article is presented for information purposes only. Under no circumstances should it be considered as financial, legal or tax advice. Speak to your advisor for advice based on your personal situation. SSQ cannot be held responsible for any decision made based on this article.