Why bother saving? You'll have your own reasons:
- You'd like to set some goals for the future, and commit to them.
- Debt is weighing you down.
- You're spending more than you're earning.
- You want to start investing but you don’t feel you have the money.
- You want to make changes but need a push.
Well, this is it! Start now.
Get in touch with your "inner saver", and start making your money work harder for you. Our Team Up With Your Money Tips below can help you kick-start your savings and start building wealth. Take a look at your priorities and start making some small changes.
Team Up With Your Money Tips
Uncover hidden money
Look at your wants and needs to see if you can find some spending areas that you might be able to cut out or reduce. For instance, pack a lunch for four days and eat out once. Have a gourmet coffee three times a week instead of five. See what an impact a few dollars can make in a month, or over the course of a year.
Step up your savings rate.
Think about how much money you could set aside without feeling a big pinch. Perhaps it’s only $25 per paycheque. Make it a small manageable amount that you can build up later. Remember, small changes make a big difference over the long term, and the habits you're developing now will help you build savings that you could later put towards investing.
Look at the purchases that have the best value, and see which ones are questionable. Prioritize. See if you can reduce or even eliminate the questionable expenses.
Develop good habits
Establish Money Mondays or Financial Fridays.
Choose a consistent time of the week that you set aside to deposit your change, reconcile your bank account, set up the next week’s saving challenge, or learn more about investing. Keep track of your financial transactions: receipts, a log book, whatever it takes so that you can gauge your success.
Evaluate the charges you are paying on bank account and credit card fees. Adjust your use accordingly or consider switching to a different plan.
Dine out on the cheap, make a grocery list, and only shop after you’ve eaten! Take advantage of coupons and other loyalty incentives.
Make it fun!
Get a friend or family member on board with helping you save. Challenge each other to see who can save the most or keep their new healthy habits.
Create money jars.
Put all your loose change in a jar at the end of each day or week. You’ll be surprised how quickly it adds up.
Find free events in your city, look at expenses of cell phone and internet plans, evaluate driving vs. taking transit, make small changes around the house to save on utilities.
Keep your momentum going
Continue to keep up the habits you've developed using these tips and watch your savings grow. Keep in mind that while money saved is generally not at risk of being lost, your savings will not increase unless you add to them yourself. In fact, inflation – the increase in the price of goods and services over time – can decrease the real value of your savings.
Investing can help your savings grow through something called compound interest, interest that's paid on an original amount deposited, and also on any interest that's been earned in previous periods. A careful investment plan can help your money keep up with inflation, generate modest income, and hopefully grow. For many Canadians, investing is not only prudent - it’s a necessity. However, the decision is ultimately up to you and the level of risk that you are willing and able to take with your money.
If you’re ready to learn more about the basics of investing, consider taking our course, The Basics of Investing, or move on to Investment Types.