Wouldn’t it be nice to have more than 3.46$ left in your account after you are done paying all your bills? I guarantee you it is one of the best feelings you will ever have. Saving money isn’t hard once you get started. Here are some tips that will help you finally go on the vacation of your dreams, buy your first house or pay your University tuition.
Check your financial statement First of all, it is important to be aware of your current financial status. Take a look at your bank account and note down how much money you have and how much money you owe.
Make your budget I know it’s unpleasant to do so, but making a budget is a crucial part of saving money. You can find plenty of templates online that you can print and use as your budget worksheet. Here is the one I prefer and it’s the one I use to make my own budget. Preparing a budget will help you be aware of your expenses and will let you know how much money you can allow yourself to save. I suggest doing a monthly budget but, if you rather do a weekly budget or a biweekly one, it’s always at your discretion.
Respect your budget Having a budget is great, but if you don’t respect it, it’s useless. It is very important to stay disciplined and to follow your budget to maximize the amount of money you want to save. I know that sometimes it can be tempting to go out to the restaurant or to buy new clothes even if you’ve already surpassed your budget, but try to stay strong. If you want your bank account to grow, keep nourishing it.
Cut your expenses If you usually eat at the cafeteria at lunch break, make yourself a lunch at home and bring it to work. Try to cut as much as you can. It doesn’t mean you can’t have fun once in a while, but you got to try to sacrifice a little now in order to gain a lot later.
Try low budget activities I understand that when saving money, we don’t necessarily want to stay locked up at home and not do anything. This is why it is good to look for low budget activities you can do with your friends, lover or family members. Here is a list of activities you can do that can save you some money.
Sell your old stuff When we need extra money, selling things we don’t use anymore is a good way to earn a couple of dimes back. Clean your house and look for things that are still in good condition that you don’t really need anymore. You can do a garage sale during summer time or you can always use sites such as Kijiji or eBay to sell your unneeded items.
Save between 10% to 20% of your income Depending on the amount of money that you have left after you've paid your bills, allow yourself to save a minimum of 10% to 20% of your revenue. It doesn’t always need to be the same amount of money, but always try to save as much as possible.
Set saving goals Choose what you want to save for and set your priorities. If you have to save money for your college tuition and the deadline is in a month but, you also want to go on a trip in 10 months, you have to prioritize your saving goals. You can label envelopes with your goals on them and add money when you can.
Invest money in the bank Visit your banking advisor and ask about the different products they have such as TFSA’s or RRSP’s and check what the interest rates are. Bankers will give you the best products depending on the risks your willing to take.
Let your bank account grow Once, you’ve started following your budget and saving money, keep working and watch your bank account starting to look like a phone number.
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"Rich people stay rich by living like they're broke. Broke people stay broke by living like they're rich."
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