Making Saving Easier – Tips for Saving

We all know how important it is to save but is often too hard to start. Sometimes even just the fear of your finances, and what you will find when you start looking is enough to halt a good savings plan. There are two basic ways to increase your savings; decrease your debt payments and spend less.

Here are some tips to get you up and on the savings band-wagon.

• Pay-yourself- first. We cannot over-sell this as a way to save. Treat saving as an expense – it really is a bill to yourself that must be paid each pay-day. Make sure it is in your budget. Take the Financial Cardio and Financial Strength tests to determine your starting point.
• Make your investments work for you – earn as much interest or investment income as possible. Talk to a financial planner or investment advisor to get the most out of your savings.
• Get organized – staring at a pile of paper-work, current and previous bills will make organizing your finances and saving even more difficult.
• Take the Financial Flexibility Test and figure out ways to pay off your debt faster. As your debt payments decrease take the difference and put it into savings.
• Make sure you understand your spending habits before you budget so that you do not sabotage your efforts by setting up unrealistic expectations.
• Pay your bills on-time to avoid extra charges. Schedule a regular time to review and pay bills. Where ever possible set up automated billing and immediately deduct the amount in your cheque register when you get paid.
• If you are not paying off a credit card balance make your payment early to decrease the amount of interest you will pay in the next billing cycle. And while we are talking about your payment – if you have budgeted a payment that is larger than the minimum payment stick to the budgeted amount. Look at the real cost of making the minimum payment in the July newsletter. It truly is shocking when you see it.
• Keep track of your spending versus your budgeted amounts – when you over-spend take note of the reason. Was it an unplanned but needed expenditure, a bit of a splurge or was your budget unrealistic.
• Cut expenses: There are about as many ways to cut expenses as there are expenses to cut.
  • Make sure you utilize the rewards that come with credit cards, frequent shopping and loyalty programs. Between gift cards, free airline tickets, discounts at stores, and free items the savings can really add up.
  • Use gift certificates and gift cards soon after you receive them. Lots of gift card issuers will decrease the value of the card if not used in a specified time period. Check to make sure you do not lose any of its value.
  • Unless you have set aside the amount to pay off the bill when it arrives - use credit only for major purchases.
  • Avoid paying user fees/surcharges at ATM machines. Ask for cash back. Take out a larger amount at the ATM instead of several small withdrawals. Keep track of how many debits you use each month and make sure you have the chequing account plan that is best for you.
  • Balance your chequing account, and keep track of your debits so you do not have to pay extra fees for overdraft or NSFs.
  • Dependent on your chequing account keep the minimum account balance in your chequing account to avoid monthly fees.
  • Trim your car expenses and your waist line at the same time – walk to work or take public transportation.
  • There are lots of unadvertised coupons and promotions made available on the internet. Check-out http://www.frugalshopper.ca , http://www.pricenetwork.ca to get deals for on-line and retail store/service purchases.
  • Watch store flyers and sales.
  • When buying packaged goods – compare the per unit price between brands to get the lowest price per serving or weight. That way you can compare even if the two brands are different sizes.
  • Always shop from a list. Set-up your grocery list by categories – you will cut-down your time in the store and be less likely to purchase off-list items if you don’t ‘browse’ as much. Eat before you go grocery shopping - you will buy less. Stick to your list - even if the double fudge brownie ice cream is screaming your name.
  • Plan your meals a week in advance. You can base it on the weekly grocery specials and coupons. It is the easiest way to start your grocery list.

Getting started is the hard part, once you get the hang of it and start seeing the dollars add up, saving will become a welcome habit. Not sure where to start – we’ show you how. Come in or call us today.