Useful Tips to Help You Save More Money
aliko-aapayrollservices.com - Small businessess from 1 to 80 employees outsource your payroll management to us and let us worry about your payroll processing.
RSS Follow Become a Fan

Delivered by FeedBurner


Recent Posts

Tax changes to expect when you’re expecting
2016 Tax Tips for 2015 Filing Year
From Proprietorship to Corporation - When is the Best Time to Incorporate?
Tax Specialists Brief your Clients About CRA Fraud And E-Mail Scams
Bank of Canada cuts rates again

Most Popular Posts

Help your teenager build credit responsibly
Being an Executor of an Estate
Anti-Aging
Student Line of Credit
Principal Residence Exemption

Categories

aliko nutrition store- isotonix
aliko payroll services
canada revenue news and videos
canadian news
CPP ,OAS RRIF ANNUITY
Cross border Tax
Disability awareness and Benefits for disabled
estate planning
FINANCIAL LITERACY
HEALTH & NUTRITION
Home Car Insurance
Income Splitting Strategies in Retirement
INVESTING
kids and money -set your children up for financial success
life insurance
on line safety tips
online safety tips
PAYROLL
Real Estate - Investments / Retirement
RETIRE HAPPY BLOG
Retirement planning
SAVE YOUR MONEY
Save your money
SERVICE CANADA NEWS
small business planning
Tax Information for Students
tax news
tax planning
tax tips.ca
Tech news
TFSA

Archives

January 2016
July 2015
May 2015
April 2015
February 2015
December 2014
November 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013

powered by

MY BLOG

Useful Tips to Help You Save More Money

Useful Tips to Help You Save More Money
 
 
Useful Tips to Help You Save More Money
 
 
 
 
Written by Jim Yih
Canadians are having trouble saving money. The latest data from Statistics Canada suggests that the average savings rate has dropped from 16% in 1985 to -0.5% in 2005. Today, a negative savings rate simply means that Canadians are spending more money than their current disposable income.
This lack of savings is further illustrated in a study by Mackenzie Financial suggesting that 56% of Canadians feel they are not saving enough for retirement. In fact, Canadians have used less than 10% of the total RRSP contribution room available. A recent study by Statistics Canada suggests that the total contribution space is about $342 billion and only $27.6 billion of that room has been used.
If you take into account that there is more pressure on Canadians to self-fund retirement, this lack of savings is a very serious problem in our country. So how do we get people to save more money? Here are some of my tips on how you can get on track to a regular savings plan.
·         Track your expenses. The first place to start is to understand where your money is being spent. Tracking your expenses will help you to recognize areas that can be changed.
·         Only use one payment method. Tracking expenses can be very difficult if you are using a couple of credit cards, your debit card and cash. The key is to keep things simple and by only using one payment method it will be infinitely easier to track your expenses. In our household, we use one credit card for all our expenses. When the bill comes in, we know how much we’ve spent in the month. We also do this so that we can collect travel points in one place. The key is to make sure that you pay off those credit card bills every month.
·         Stop using cash. Have you ever gone to the ATM machine, taken out $100 and before you know it, the $100 is spent. Spending cash is the most difficult to track. Spending cash is often the source of unknown leakage of expenses – a chocolate bar here, a magazine there, parking, a drink and a snack, etc.
·         Set up a monthly automatic savings. Once you know where your money is going, you will see that you are paying everyone else first and saving what little you have left over. It’s time to break the pattern and start a monthly savings plan right away. Your future is too important for you not to pay yourself first.
·         The earlier you start the better. It’s never too late to start. so start right away. Time and compound interest have often been referred to as the eighth wonder of the world. When you understand the power of compound interest, you can’t afford to wait any longer.
·         Something is better than nothing. Investing money regularly needs to become a disciplined habit. No matter how much or how little money you have, you need to get into the habit of disciplined saving. Even if it is as low as $25 per month, something is better than nothing.
·         Increase your investment regularly. When it costs you more money at the pump to fill up your gas tank or when the price of fruits and vegetables goes up 10% or when your utility bills increase, what do you do? Often we have no choice but to pay those bills as part of our lifestyle expenses. Each year that passes or each time you get a raise, make sure you increase the amount of money you save accordingly. If inflation rises by 3% and your expenses increase, make sure you also set aside more money for you first.
Three Key ingredients for the perfect saving plan
Saving money is simple, not easy. Most of us know what we have to do but the ‘doing’ is the difficult part. If starting a savings plan seems difficult, first remember three key things. First, saving money requires effort. It only comes natural to a few. For most of us, unfortunately, it is work but the rewards are huge. Secondly, it takes conscious awareness. If it does not come naturally, you need to find ways to constantly remind yourself to participate in savings. Write little notes to yourself, or put up sticky notes in your bathroom, or schedule it into your daytimer or find a support mechanism like a spouse or a friend. Lastly and most importantly, saving money requires a discipline. It’s been said that a habit takes 21 days to form. Make sure savings becomes a habit, second nature and with discipline, you will be on your way to financial success.
 
 
 
 
 

0 Comments to Useful Tips to Help You Save More Money :

Comments RSS

Add a Comment

Your Name:
Email Address: (Required)
Website:
Comment:
Make your text bigger, bold, italic and more with HTML tags. We'll show you how.
Post Comment