Financial success isn’t simple and it doesn’t happen overnight—in fact, it can take substantial time, effort and dedication to reach your goals. That said, there are plenty of easy, actionable steps you can take to get moving in the right direction. At first, these minor lifestyle changes may not have a big impact on your bank account—but when you implement a number of small but effective strategies and stick with them over time, you’ll definitely see the benefit.
So, let’s get saving! For personalized financial advice that reflects your unique needs and goals, please contact us—an Interior Savings advisor would be glad to help. In the meantime, consider implementing these four easy and effective ways to save money right now. It might give you a solid head start!
Plan ahead
One of the simplest ways to stay on top of your spending and savings habits is to create a clear, realistic budget and stick with it. Account for fixed expenses like your rent/mortgage payments or car insurance as well as variable costs like gas, groceries and entertainment. Build in a line for miscellaneous expenses (you know there’s always something!) and savings/investments as well as spending. If you have debt, include your debt repayment as well. Be realistic and brutally honest with yourself—if you know you’re going to buy a $5 coffee every morning, that’s okay as long as it’s accounted for. If your budget isn’t working no matter how hard you try, you need to increase your income or reduce your monthly expenses. Your Interior Savings advisor can help as needed—please contact us to get started!
Get offline
Planning is good, but so is avoiding temptation. The average Canadian spends several thousand dollars each year on impulse purchases[1] and a lot of that shopping happens from their smartphone. This typically involves more wants than needs and may be emotional rather than practical in nature. One recent study revealed that 47% of Canadians have bought an item from an ad on social media, and 52% of individuals who shop on social media have made impulse purchases[2]. That’s a lot of money being spent! To avoid spontaneously overspending, stay off social media as much as possible, avoid scrolling when bored or emotional, remove your credit card information from your phone to make purchases less convenient, and make a rule that you can ‘save’ posts but not actually purchase from them for at least 24 hours (if not longer). This will force you to pause and reconsider purchases before spending a dime. In short: the more online impulse shopping roadblocks you can build for yourself, the better!
Make it a group effort
If you’re trying to save money, let friends and family know. You may be surprised how much having them on board with your goals can help! Suggest making plans that involve free or affordable activities—watching a movie at home instead of going to the theatre, taking advantage of free admission days at galleries and museums, attending free community events, hosting a potluck instead of going out to dinner, going for a hike, or simply choosing a more affordable restaurant when you go out for the evening. You can also suggest going out for drinks or appetizers instead of dinner—this is a great way to control costs and stay on budget. You want to have fun, after all—just not the kind of fun that ends up with you racking up credit card debt.
Automate it
Spending less is key, but so is saving more. Consider opening a savings account and setting up an automatic deposit of $10, $20 or $50 a week (whatever you can reasonably afford). Make an effort to ‘forget’ or at least ignore these funds—once you get used to the withdrawals, it won’t be hard to do. You can even set up multiple automations throughout the month—for example, $25 to a savings account, $25 to a TFSA and $50 to an RRSP. Talk to an Interior Savings advisor about the best places to save and/or invest your money—the answer depends on your goals and current circumstances.
Thanks for reading and as always, please reach out to our team if you have any questions. We’re here to support your financial success with personalized, expert guidance that reflects your needs and fits comfortably into your life.