Set up automatic transfers
The easiest way to save money? Forget about it! Setting up a transfer that triggers automatically every payday is a proven saving strategy. Determine a realistic amount to transfer into an RRSP, a TFSA or a second bank account every time you receive your paycheque. Many employers can even make the deduction directly from the source. When the money is directed into your savings automatically, you won’t think about it as being available and may even forget it’s there. You won’t miss it, because you’ll get used to making your budget with the amount that’s in your account.
Use technology to help you save
There are several mobile apps that can monitor and categorize your monthly spending. Check these apps regularly. You may be surprised to see where your money is going and which categories you could be spending less money in. These easy-to-use tools can also link to all your various accounts and credit cards.
Open a virtual account
Making it harder for yourself to withdraw money can be a strategy that pays off. Sometimes you can be your own worst enemy! Consider saving your money with a financial institution that doesn’t have brick-and-mortar branches by opening an account online. This will prevent you from being tempted to withdraw money from an ATM. You can even take it one step further and leave the card for the account at home.
Reward yourself for saving
One way to develop good habits is to deposit saved money into your savings account immediately. For example, if you decided not to buy your usual $5 Friday latté, put that unspent money aside right away. You “pay yourself” for making the right decision. You’ll start to enjoy seeing these little amounts accumulate and grow. You’ll also get to see the real impact that small, seemingly insignificant purchases, like treats, can have on your budget.
Whether you’re dreaming of travelling, becoming a homeowner, renovating or just preparing for a rainy day, all of these small actions can help you get closer to your goals every day.