Many Canadians dream of having enough money not to worry about how they are going to spend it every month, but the reality is that many don’t make nearly enough to maintain that dream lifestyle. In fact, 2.8 million Canadians lived below the poverty line in 2021.
Thankfully, there are plenty of ways you can save money, even when it means having a little left to spare each month, and these five money-saving tips will help you set the tone to a saving habit.
1. Create a Budget
Many people don’t realize the importance of budgeting and the fact that it can make a massive difference in terms of financial stability. The key is understanding where your money is going on a day-to-day basis. By creating a basic budget, you’re taking control of your finances and planning for short and long-term expenses.
Phone calculator
A budget also lets you know where any financial issues might stem from so you can better address them. Creating a detailed budget will get you there if you’re looking for an easy way to start saving money.
2. Use Coupons to Shop
If you don’t use coupons and specials to shop, you might be missing out on some savings. That 20% off coupon can add up quickly, saving you money to set aside.
It also important to note that sales don’t mean buy more. Look at it as an opportunity to stack some money aside. Its the habit that counts, however small the contribution.
Clothes on sale
Shopping using coupons is vital when after the end of every month, you barely have anything left to save.
3. Compare Grocery Prices
Another way to maximize on savings is to find great deals by comparing prices between grocery stores. Prices for the same items vary quite a bit from store to store. Take advantage of price comparison apps, websites, and in-store price matching when you want to buy groceries.
Grocery price tag
Grocery shopping apps like Instacart let you save even more money by automatically delivering your online orders directly from your favorite local grocery store. You can skip the trip altogether if you’re short on time.
4. Understand Interest Rates
Interest rates can eat away at money that you’d rather be saving. It is important to when to use credit and when to use debit. Merchants have made it easy for consumers to acquire goods through financing.
While this might sound like an amazing way to acquire goods and services, you will end paying more money in the long run for things you don’t actually need.
Credit card tap payment
By understanding how credit and interest works you are inclined to make smart financial decisions, and save more.
5. Shop For Second Hand Items
Buying things second-hand is a great way to save money. Most people don’t realize how much money they spend on things they don’t need. For example, buying clothes from a thrift store is a great way to save some money.
Thrift Store
While second-hand shopping isn’t exactly buying brand new, it does help keep more money in your pocket without taking away from the quality or aesthetics of your wardrobe or household items.
Value village is a great place to practice this habit.
Wrap Up
It is hard to save everything at once, especially in financial planning. Start small and work your way up. Make it a habit. The less you spend and more you save, the better off you will be long term.
