How To Save Money
A survey by the Canadian Payroll Association found that nearly half of Canadians are living from paycheck to paycheck.
Perhaps it is time to ask yourself – what drives your spending? Are you just meeting basic needs such as survival and security?
Or do you indulge in leisure, fun, pleasure, or adventure? Do you allocate funds for giving gifts and for charitable causes?
Do you focus on debt repayment, or splurge on travel and holidays? Buying toys and gadgets, or investing in personal development? Are you surprised? Where would you like your money to go? Hopefully, this list will help.
1. Save with a purpose. What are your financial goals within the next 3, 5, and 10 years? Is your spending aligned with your goals? Create a budget with your goals in mind.
2. Pay off high-interest debt. Debt robs you of your future!
3. Find ways to reduce your expenses, e.g., entertainment, subscriptions, banking fees. Use coupons and shop while items and services are on sale.
4. Pay yourself first. Instruct your financial institution to debit a part of your monthly income automatically. Direct those funds to a savings plan.
5. Before going shopping, decide how much you can spend and stick to it. Same with gift-giving, and special occasions. Refrain from using credit.
6. Get the family on board in finding ways creative to save money.
7. Are you an emotional shopper? Become aware of when you are likely to shop impulsively. Find alternative ways to meet those emotional needs. Call a friend.
THE BOTTOM LINE
Creating new saving habits is going to take a mindset shift. It takes time, but your financial health depends on it.