A lot of Canadians have been struggling with the impact of inflation, rising grocery bills and other financial challenges in recent months. Trust us, if you feel overwhelmed by the cost of—well, everything—you’re not alone. Many individuals and families are feeling the strain and while we don’t expect these challenging times to last forever, we know they can be difficult to navigate for any period of time. Personalized financial guidance is key, but there are small, practical ways to save money in challenging economic times. Here are some tips to help trim your budget—if you’d like to speak to an advisor about your specific financial situation, please contact us.
Plan ahead to avoid impulse spending
Sometimes, we end up unexpectedly spending money because we didn’t take the time to plan ahead (it’s okay—we’ve all been there). To avoid making impulsive purchases out of necessity or convenience, take some time to map out your week and plan accordingly. This may involve packing a lunch to bring to work each day, carrying snacks in your bag so you don’t end up spending $4 on a muffin when you’re starving mid-afternoon, making plans to carpool, or simply giving yourself enough time to take public transportation so you don’t end up calling an Uber. The less you’re paying for food and transportation, the better—you may be surprised how much you can save just by getting organized.
Cancel unnecessary automations
Automated bank withdrawals can be an easy and effective way to save money—for example, having $25 transferred into a savings account every Friday—but not every automated withdrawal is helpful. If you’ve signed up for a number of monthly product subscriptions, magazines, streaming services or other fee-based memberships, consider cancelling anything that isn’t being actively used (or, if times are truly tough, cancel or pause any memberships you don’t absolutely need). Look at your monthly banking and/or credit card statement to make sure you’re not paying for any services you’ve forgotten about. Be practical, not idealistic—if you’re not using your gym membership, get rid of it now rather than waiting another six months. These automated payments add up quickly and can take a big chunk out of your budget. Try scaling back as much as you can—you may find that you notice the savings more than you notice the absence of that product or service!
Look for everyday savings
Another way to minimize your discretionary spending is to cut back without cutting yourself off. Everyone needs to have a little fun—the secret is to live well on a budget! If you want to meet friends for drinks at a nice bar, go for it—but have one cocktail instead of two or three. Suggest meeting friends for coffee or lunch instead of dinner, or host a potluck (make it BYOB) instead of going out to a restaurant. Make an effort to have your morning coffee at home instead of buying it every day and again, bring a bagged lunch to work (buying a $10 lunch every day is a serious budget killer, so this is worth repeating). Read your grocery store’s flyers each week and meal plan according to what’s on sale. Buy in bulk when it makes sense to—meat, toilet paper or canned goods, for example—but avoid buying big packages of produce or other perishable items if you live alone or have a small family. You won’t get any real savings if you end up throwing food in the trash!
Building these habits won’t put an end to inflation or lower the cost of housing, but if you stick with them over time, they’ll help you stay on budget and lower your day-to-day stress. We also encourage you to read these articles for more great financial tips from our team. Whether you want to talk about debt management, budgeting or buying your first home, Interior Savings is here to help—please contact us to learn more and get personalized advice.