Tips to Save Money

tips on saving LinkedIn

Saving for the future should be on everyone’s minds. Here are some useful tips to save money.

Having a budget. It’s easier said than done. To constantly keep up with your budget every month, you have to first set a realistic budget. On the first of a new month, keep track of everything that you purchase. We recommend using an excel sheet to easily input your expenses. Make sure to categorize everything (Restaurants, Groceries, Fun,…). By the end of the month, you can track where your money is going and establish a realistic budget for your needs.

Automatic savings. Setting up automatic savings is the most effective way to save without thinking about it. Whether it’s towards your savings account, investment account, or towards retirement, take advantage and figure out what you need to do to set this up. Every month, having your bank deposit a fixed amount into these accounts. Establishing a budget as said in the previous point will help you determine how much you can afford every month to put in your savings. Once you figure that out, it’s out of sight and out of mind.

Aim for short-term savings goals. Make a goal such as setting aside $20 a week or month, rather than an annual savings goal. People save more successfully when they keep short-term goals in sight. Having a goal to save $20 in a week makes you more mindful about your purchases and your budget; compared to saving $1000 a year.

Avoid splurges. This is when you want to buy unnecessary items impulsively. First, unsubscribe from marketing emails you get from various retailers. This will help you not look at their sales and promotions at all. Another way to avoid impulse purchases is to use the 24-hour rule. Thinking over each of these items for at least 24 hours will help you decide if you truly need the item or not. Doing so will more often than not help you stop splurging on items you don’t need.

Pay off credit cards in full every month. You can save a significant amount of money by not paying the 20-20% high-interest on your credit card. Paying your credit cards in full every month will allow you to keep your hard earned money to yourself while reaping in the points on the credit card. Remember, don’t spend more than you can afford.

Take full advantage of employer matches to your retirement plan. Often as an incentive, employers will match a certain amount of what you save in a retirement plan such as a 401(k) or RRSP contributions. If you don’t take full advantage of this match, you’re leaving free money on the table. Make sure to save the maximum amount they much to take full advantage of the benefits your employer offers.

Invest in a TFSA. The contribution limit is now up from $5,500 for 2019. With the TFSA limit at $6,000 for 2019, the total room available in 2019 for someone who has never contributed and has been eligible (Canadians 18 and over) is $63,500. Your money in this account grows tax-free –meaning you don’t pay tax on money if you withdraw. This is a great account to invest your money in.

Track your investments. Using our software CRM2Plus, you can keep track of your investments and analyze your entire financial picture in one go. You can add your retirement plans, investments from your TFSA account, and any investment and real estate plans as well. Knowing how your portfolio is doing and being able to see it visually will help you make sound investment decisions.

Applying these tips into your daily routine will allow you to save without thinking too much. Take control of your finances and be able to live comfortably for the future.

 

 

 

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