Tough economic times like these call for tough measures. But, there are also some simple things you can do to tighten your belt and save money. The Investor Education Fund, Canada's unbiased, non-profit source for information to help you manage your money, offers the following tips:
- Do it yourself. Stop paying others to do things you can do yourself. For example, wash your own shirts instead of taking them to the dry cleaner.
- Eat out less. Start cooking more at home. Take your leftovers to work for lunch.
- Shop smarter. Shop with a list so you won't buy something you don't really need. Look for weekly specials at the grocery store, and discounts for services. You can also save money if you wait for sales to buy big items. Don't try to keep up with clothing trends. Many people shop at second-hand stores and save a lot of money.
- Give up bad habits. Quit smoking or cut down on things like alcohol or fancy coffee.
- Avoid betting. Don't spend money on lottery tickets or other forms of gambling. Use the money to save or pay down debt.
- Use less energy. Spend less on heating and cooling your home. For example, don't leave lights on when you're not using them. Use less heat or air conditioning if you're away from home or sleeping.
- Walk more. Save money and get fit at the same time. Use a bicycle or take public transit if it's cheaper than driving your car.
- Keep your car longer. You can often put off buying a new car if you take good care of the car you now have.
- Consider getting rid of your car. Some people save a lot of money by using taxis or rental cars to get where they need to go. Do the math to see if this will work for you.
- Find cheaper ways to play. Rent movies instead of seeing them in the theatre. Pick a holiday spot closer to home. Spend less on your cellphone by getting a cheaper package or talking less.
- Pay cash. It may seem easier to make a small monthly payment over a long period of time instead of paying the full price up-front. However, those easy payments add up quickly and can cost you more in interest over time. Also, if you have trouble controlling your spending with credit cards, cut them up and pay cash. You may be surprised at how much less you'll spend.
- Borrow smarter. You'll pay a high rate of interest to borrow money on your credit card. Instead, try to get a cheaper loan that will leave you with lower monthly payments overall.
Tip: Use Industry Canada's Daily Spending Calculator to see how much you can save by changing your spending habits.
Remember that spending less doesn't have to be hard. Try making just a few small changes and see where you are six months or a year from now. The dollars you save today really add up over time.
USEFUL WEBSITES
- Canadian Foundation for Economic Education. "Working to enhance the economic capabilities of Canadians." www.cfee.org
- The Virtual Adviser. Non-profit, non-partisan website's "sole purpose is to help improve the financial and economic capability of Canadians, and to assist them with the challenges and decisions that they face" by offering answers to commonly asked questions. www.virtualadvisor.ca
- The Financial Consumer Agency of Canada "provides consumers with accurate and objective information about financial products and services." www.fcac-acfc.gc.ca
- Investor Education Fund. "Canada's unbiased, non-profit source for information and tools that help consumers make better decisions when investing and managing their money." www.getsmarteraboutmoney.ca