Five ways to find money to save

Everyone’s spending habits are different. Finding ways to save involves looking at your recurring expenses and seeing what you can reduce or eliminate. Consider these five money saving optionsOptions An investment that gives you the right to buy or sell it at a set…+ read full definition:

1. Decide which subscriptions you really need. Many people have some kind of monthly subscriptions, such as streaming services or magazine subscriptions. Ask yourself which one you use the least. If you can find one subscription to cut, that could provide $20 or more in monthly savings. Perhaps you signed up for a free trial and never cancelled the subscription when fees started to be charged. Companies offer free trials because they hope that the pain you will experience from losing the service will push you to keep it — and pay for it. This is an example of loss aversion which can impact your financial decision making. Take a look at the services you could do without and add up the savings you’d gain from cancelling. You might find you miss some things less than you might expect.  
2. Pick a time each month to use points, cards, or coupons. Often people forget about gift cards sitting around in their wallets or desk drawers. The same goes for store loyalty points or coupons. Decide a time each month to check your points balances and remind yourself of any gift cards you haven’t used. If you can get your coffees for free one month or save on your grocery bill the next month, that could net you significant yearly savings. You could make the first day of a new month the time you decide which cards or points you’ll use.
3. Make a date to get a better deal. Many of us get in the habit of maintaining the status quo instead of finding a cheaper option, especially when it comes to monthly services like cellphone and internet packages. If it’s been a couple of years since you changed your plan, chances are there are promotions you could take advantage of. Set a time to call your service provider — or try their online chat — and ask for a better deal. You might also be eligible for a discounted rate through your employer. If your service provider won’t reduce your bill, then your next step could be to find deals you could get by switching to a competitor. The key is to set a time to make the calls, and even consider setting a target savings amount.
4. Plan to take advantage of discountDiscount When something sells for less than its normal price.+ read full definition days. There are certain times of year when discounts are common. Black Friday, Boxing Day and Canada Day, are just a few examples. These are good times to take advantage of discounts to buy gifts and household items. At the end of a season, you can often find discounted items to stash for the next year. There are also often days of the week or month when large stores offer discounts or extra bonus point to loyalty card holders. When you see these advertised, set a reminder on your phone to take advantage. You can even mark them on your calendar to help you plan your shopping. It could help you spend less on items you are already planning to buy.
5. Find one magic tradeTrade The process where one person or party buys an investment from another.+ read full definition-off that works for you. Everyone’s spending habits are a little different. One of the most valuable ways to reduce your spending is to find a trade-off that is cheaper than one of your recurring expenses. For some, that could mean swapping take-out orders for frozen pizzas stashed at home. For others, it could be trading the food court lunch at the office with bringing in a sandwich from home. And there may be free options to help you spend less, like using your local library for books instead of buying them new. The trick here is to find the trade-off that works for you. You could even try a different trade-off each month to see which one sticks.

Depending on your situation, some of these tips could save you $20 or more per month on their own. If you can find multiple ways to cut expenses or use trade-offs, the saving could be very worthwhile. Try more money-saving tips for inspiration.

Use the Spending Habits Calculator to see how much you can save by changing your spending habits.

How to get ready to save

Finding money to save isn’t just about where you find it — it’s also about making the time to look for the savings. It also makes a difference if you have a clear motivation to save. Make it easier to follow through on cutting costs with these steps:

1. Have a specific number in mind. If you know how much money you’re looking to save each month, that will help you figure out where to find the savings. For example, if you want to save $25 a month, that could probably be accomplished with just one of the ideas listed above. Reducing a couple of takeout lunches or cancelling a streaming service would add up to that number. But if you are looking to save a larger amount, you might need to look at multiple places to reduce costs
2. Make the time. Steps like calling your cellphone service provider take a bit of time and mental energy. That makes these kinds of tasks easier to put off until later. Try treating it like an appointment. Put aside an hour in your calendar when you know you’ll be able to take the time. Or give yourself a deadline. Take it a step farther by talking to a friend or family member about your personal deadline, so they can act as accountability partner.
3. Know why you’re saving. Your motivation to save might be to have extra money at the end of the month to help build an emergency fund. Or, you may have new expenses, such as higher rent or childcare costs, that need to be offset by savings elsewhere. You might also have a larger investing goal, like retirement, and are looking for an extra $50 each month to contribute towards it. It’s good to know why you’re finding money to save, to help keep you motivated to reach your goal.  

Finding money to save will often involve taking a close look at your expenses. Try one of these four ways to track your expenses, to help you get into the habit.