If you’re like most people, you’re looking for small ways to save money every month. Not that saving a few dollars here is bad, but the smartest thing to do is hunt for the huge savings first. It’s possible to save thousands of dollars a year by prioritising the most important saves first. Before moving on to lesser savings tips, you should learn how to take advantage of the greatest savings tips first and see if you can increase your savings as you proceed.
Consider ways to save money on food, transportation, auto loans, and home mortgages for maximum savings. But these are some of the most important places to start saving your money.
Prevent Spending on the Spot
Every year, the average family probably spends at least $2,000 on unplanned expenses. Fortunately, there are two simple techniques to cut down on impulse purchases and save a lot of money:
Make a Grocery List and Stick to It
People can save up to 23% on their grocery expenses by avoiding impulse purchases, according to a study conducted by the University of Pennsylvania. So if you want to save money, make a food list and stick to it.
This one suggestion may save a family of four over $2,600 in food costs, according to Statistics Canada’s estimates.
Don’t Use Plastic When Shopping
According to a Dunn & Bradstreet survey, persons who use credit cards to make purchases spend between 12 and 18 per cent more than those who pay cash for the same goods. In addition, those who pay with a credit card instead of cash spend roughly twice as much at vending machines, according to the research. The average consumer at McDonald’s spends $7 on food while paying with a credit card, as opposed to $4.50 when paying with cash (a 56 per cent increase in spending).
Avoid the Grocery Store by Stocking Up on Food
If you buy a lot of food when it’s on sale and then skip one supermarket shop a month, you can save a quarter of your grocery bill each year. Instead of going to the grocery store, you rely on what you’ve already bought. Do it once every couple of months if you can’t do it every month. But you will save a lot of money this way. If you discover bread and meat on sale, you can stockpile them and freeze them for later.
Compatibility in Terms of Pricing
You can price match in Canada, although many Canadians don’t know it. Shopping at your preferred grocery store, but making sure to check the flyers in advance and bringing the flyers with you to show the cashier that a competitor is promoting a lower price, is what this entails. You don’t have to waste gas driving around town in your favourite grocery store that matches the advertised costs of your local competitors. By shopping at a grocery store that price matches competitors’ fliers, you can save at least 10% on your groceries. For a family of four, this would save more than $1,100 each year.
To Save $1,800, Bring Your Lunch to Work With You
The cost of simple things like lunch, such as buying a lunch every day rather than preparing one at home, is often overlooked by many of us. To save money, many people cook considerably more food than they need for supper and then bring some of it to work for lunch the next day. If you don’t like this idea, you can always create something new.
The cost of buying a lunch every day is going to be too expensive. A year’s worth of lunch at $7 a day adds up to far over $2,000 in one year! Whether or whether you want to keep this money in your wallet, you have the option of looking elsewhere for a safe home for it.
Invest in a Pre-owned Car Rather Than a New One
Save $9,000 by Selling One Vehicle
The average cost of owning, maintaining, and insuring a car in Canada and the United States is roughly $9,000 per year. It is possible to save a lot of money even if your automobile is below “average” if you can get rid of one of your cars and take public transportation, carpool, walk or ride a bike (weather permitting).
Most of Canada doesn’t have public transportation, but those who do can save a significant amount of money. Consider it. If you don’t have a car, public transportation is 80% cheaper than having one!
Recent years have seen a dramatic improvement in the quality of automobiles produced by manufacturers. Buying a used car is less risky than it used to be since the quality of automobiles has improved. To find the best-used cars, consumers still need to be cautious and use publications like Consumer Reports or Phil Edmonston’s Lemon-Aid books.
But new cars lose so much value once you drive them off the lot that it now makes more sense than ever to seriously consider buying a quality used car rather than a new one. “A new $28,000 car will lose around $17,000 in value in the first four years you own it,” personal finance radio personality Dave Ramsey told his listeners. A $100 bill may be thrown out of the car window once a week to obtain the same effect.”
It is possible to save thousands of dollars by purchasing a secondhand car rather than a new one. It’s possible to save thousands of dollars and acquire a fantastic automobile that may even be covered by a warranty at the same time. With the help of Consumer Reports or Phil Edmonston’s Lemon-Aid, you can find a high-quality used car. Your local library will likely be pleased to show you where these periodicals are kept if you’re unfamiliar with them.
Debt Consolidation: Pay Off Your Credit Cards
Saving money in Canada is easy when you pay off your credit cards each month.
Your credit card company is charging you roughly $1,000 a year in interest if you have a $5,000 balance at 19 per cent. Paying down this debt is a simple method to save $1,000 a year. You may save a lot of money if you had a lot more credit card debt than this.
For the most part, consumers are unconcerned about how much interest they are paying on their credit card bills or how long they have been carrying those obligations. If you’ve been paying 19 per cent interest on $5,000 in credit card debt for the past five years, you’ll have practically paid off your debt in interest. Financially, it’s not a good idea. Please click here for some ideas on how to get out of debt.
Saving Money for Life’s Milestones and Aspirations
When you’re devising a strategy to save money quickly, having a clear objective in mind can be useful. In some cases, this aim is as huge as getting married or buying a house; in others, it is a lot less. We’ve put up a handbook to help you on your savings journey, no matter where it takes you. For further information on how to save for various life events, including:
To save money for a car, you can do several things. When it comes to saving for a car, you won’t need as much money as you would if you were purchasing a new home. You might think it’s difficult to save enough money for a down payment on a new house, but there are a few clever tricks you can use to rack up some serious savings in no time flat.
Getting hitched – Curious as to how much a wedding in the United States costs on average? Take a look at our pricing breakdown and follow our simple advice for keeping your wedding costs in check.
It’s all about being deliberate in creating a budget. Using this tool, you’ll be able to see where your money is going and how much you may save each month by creating a budget. Every dollar that you save or spend is assigned some sort of purpose before you do so when you create a zero-based budget Regardless of how much money you make, remember that what matters is how you spend and save it.