It pays to make saving a habit. If you can find more money to save each month, you can put more money aside to reach your financial goals. Find out more about ways to simplify saving.
10 tips to save more money
It pays to turn saving into a habit. Even small savings add up over time.
| If you save this much each week | You’ll have this much in a year |
| $5 | $260 |
| $10 | $520 |
| $20 | $1,040 |
| $50 | $2,600 |
Saving just $10 a week can add up to a small emergency fund by the end of the year. That fund could be enough to help you through an unexpected expense. Consider trying these 10 strategies to help make it easier to save money:
1. Pay yourself first
One of the easiest ways to save is to make it automatic. Use online or mobile banking to set up your own monthly savings program. Set up an automatic transfer from your chequing account to your savings account on payday. That way your savings is taken care of before other discretionary spending.
You can change the amount you transfer each payday, as your budget changes. Setting up automatic payments helps create default financial decisions that work in your favour.
2. Find some everyday expenses to cut back
Most people have things they regularly spend money on. Rather than cutting them out altogether, decide what you can cut back on. For example, if you enjoy getting takeout coffees, try getting them only on alternate days, instead of every day. See how your savings add up. Check out the spending habits calculator to see how changes to your spending habits can help you save more of your money.
3. Use unused gift cards
Many Canadians have gift cards sitting in their wallets or drawers at home. Check the balances on gift cards to see if you can use them to help pay for upcoming purchases. The money you save could go to your savings account or a debt payment.
4. Use unused points
Many people earn rewards through points cards. Make a list of the accounts that have points — grocery store or drugstore loyalty points, credit card rewards points. Even the cafes or restaurants you frequent may have rewards cards. You might be able to manage a whole week’s worth of expenses or more by cashing in points.
5. Set a time to review your bills each month
Book a money date with yourself once a month to review your bills. It can be eye-opening to sit down and check how much recurring expenses really cost, such as your cell phone bill or streaming services. If it feels overwhelming, pick a different bill to review each month, rather than trying to tackle them all at once. For example, review your cellphone plan and data usage to see if it makes sense to change your plan. The next month, look at your utility bills to see if you can find ways to reduce your electricity use at home.
Tracking your cash flow can give you valuable information about your financial habits. Try the cash flow calculator.
6. Make the most of five Friday months
If you’re paid weekly or bi-weekly, there will be some months of the year where you’ll receive one more paycheque than usual. For example, if you’re paid bi-weekly, most months you’ll receive two paycheques. But there are two months of the year when you’ll receive a third cheque.
If you build your monthly budget around four Friday months, then the months with an extra paycheque will be a great opportunity to save.
7. Find your magic trade-off
There are many kinds of spending trade-offs. But the more important thing is to find the ones that will “stick.” For example:
- Leaving the car at home and walking or taking transit more.
- Using your library card instead of buying books online or in store.
- Meeting friends for walks outside instead of at a restaurant.
- Rotating your subscription services every few months so that you’re only paying for one at a time.
8. Check what savings apps you have access to
Your online banking may include apps for budgeting and saving as part of your services. Some debit cards also round up transactions to put the remainder towards your savings. Make sure you’re comfortable with the privacy settings of any app or automated savings steps.
9. Join a savings plan at work
Find out if your workplace offers a savings plan. With this type of plan, your employer would take money from your pay each month and automatically contribute to a savings or investment account. Learn more about workplace pension and savings plans.
10. Plan ahead for how to use your tax refund
If you’re expecting a refund at tax time, this is a great chance to top up your emergency fund. Or you could use it to save for a large purchase, or contribute to your TFSA, FHSA, RESP, or RRSP.
Do you have less money than you expected at the end of each month? It might be time for you to find ways to reduce your spending.
Summary
Using different strategies to save money can help make it easier to build your savings. Try some of these strategies:
- Paying yourself first – Make automatic transfers to your savings account through your banking.
- Check for savings apps – Your online banking may include budgeting apps that can help you save.
- Join a savings plan at work.
- Use unused gift cards – Check the balances of your gift cards and use them towards saving or payments.
- Use unused points – Keep track of your unused points for all your rewards accounts.
- Review your bills each month – See which expenses can be reduced.
- Turn everyday expenses into occasional ones.
- Make the most of your paycheque if you receive an extra one in a month.
- Find a spending trade-off that will work for your lifestyle.
- Plan for your tax refund.
