Let&#;s be real, saving money has always been difficult. But with inflation as high as it has been in over 40 years, saving money is becoming impossible for some. In this article, we&#;ve listed ten frugal habits to help you save money
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In a recent study, the Angus Reid institute reported that 50% of Canadians couldn&#;t manage an unexpected expense of $ or more. In the same study, when Albertans were asked what they would do with a surprise bonus or gift of $, 46% said they would use it to pay down debt. Only 41% said they would put it in savings or invest it.
&#;Habits are like the atoms of our lives, each one is a fundamental unit that contributes to your overall improvement&#; &#; James Clear, Atomic Habits
Habits are powerful. They help us take a systematic approach and break big goals down into manageable chunks. Certain habits may be more important to you. Pick 3-4 that connect with you and try implementing them over the next few months.
Let us know how you get on!
It may seem obvious, but the only way to start saving money is to know where your money is going and track spending. If you only implement one habit from this list, start here. The simple step of understanding how much money you are spending can have a sizable impact on how much you save.
The best way to track your spending is to choose a timeframe. Some people like to track their spending daily, others choose to track their spending week by week, with a few people opting to track their spending monthly. We&#;d recommend doing all three, because why not?
Make it a habit to automate your savings. This habit is sometimes called &#;pay yourself first&#; and is a useful way of automating your savings. It puts saving money at the top of your priority list by making it the first thing you do with your paycheck. Even if you are only paying yourself an amount as low as $20 a month, it&#;s still something, and will put you in a money-saving mindset.
Make sure you have a separate bank account for your savings. By separating your bill-paying account and your savings account, you can set up an automated deposit and forget about the accumulated savings until you need them.
In today&#;s increasingly cashless society, loose change is becoming a rare commodity. Why not try using cash and then make a habit to save loose change and put it in a jar or piggy bank. It&#;s surprising how quickly it can add up. Loose change is usually money you aren&#;t tracking. It isn&#;t visible on your banking apps or on your statements, so it&#;s money you sometimes forget you have. Start saving it and see how quickly it adds up.
An important method to save money is to compare prices and comparison shop before you purchase an item. It&#;s too easy to buy things these days. With next-day-delivery and one-click-to-pay, purchasing items is fast becoming a frictionless activity. A good way to save money and cut back on spending is to add a bit more friction between you and that shopping cart, real or virtual.
Consider the 3-step approach to shopping.
Step 1 &#; Research the item online and compare the item across different online stores
Step 2 &#; Conduct a research trip: visit the shops near-by and see how much the item is in-store, maybe there is a sale on.
Step 3 &#; After completing your research, visiting local stores and comparing different retailers, if you still want the item then you can now purchase it.
There are many things that can trigger a spending spree, from sales and special deals to mental states such as boredom or stress. As with our first habit of tracking your spending, an important habit here is tracking your triggers.
Become mindful of your mental state before you make a purchase. What caused you to make your last purchase? Was it an impulse-buy in the gas station? Were you feeling bored and decided to head to the mall?
Shopping for bargains at garage sales or thrift stores can become a fun and engaging activity. Shopping online is quick and easy, but it&#;s over so quickly. Close the laptop, put down your , and head into town to see if you can find what you&#;re looking for at a second-hand shop.
If that&#;s not convenient for you, then why not shop second hand on a website such as Kijiji. You can find pretty much anything on there, often at a fraction of the retail price. Watch out for shipping costs if you are having something delivered.
Windfall income is an unexpected gain or spike in earnings and can include things like lottery winnings, birthday money, tax-rebates, or bonuses at work. Essentially, any income you receive that is surplus to your expectations.
In an ideal world, all of your surplus earnings should be saved. But if that&#;s not feasible you could look at implementing a spending rule of thumb:
&#; The 50% Rule: Save half, spend half.
&#; The Rule of 3: Save a third, spend a third, apply a third to debt.
This was an important step in a previous blog post of ours on avoiding buyers&#; remorse. Similar to conducting research before you make a purchase, instituting a waiting period allows you to put some friction between yourself and buying an item.
During this waiting period, consider asking yourself these questions:
&#; Will this purchase meet one of my goals?
&#; Do I really need it?
&#; Can I afford it?
&#; Am I buying this only because it&#;s on sale?
&#; Would I buy this if I had to pay cash?
&#; Would I come back tomorrow to buy this?
&#; How much do I owe on my credit card this month?
&#; If I charge this, can I pay off this month&#;s bill?
&#; Could I feel better now without spending money?
Thinking about how many hours you need to work in order to purchase an item is a great way to check whether you really want the item or not. There are ways to make more money, but you only have a set amount of time &#; so spend it wisely!
Conduct a cost versus benefit analysis. For example, is the benefit you&#;ll receive from a new AppleWatch really worth a full week of work?
Our consumer-driven society is great at convincing us that we can make up for something we lack by purchasing the newest, shiny gadget or going out for a big fancy meal. There is a multi-billion dollar industry aimed at making you feel like you are not enough until you&#;ve bought some product or used some service.
A great way to save money is to realize what&#;s going on here. Understand that there are ways to feel content that don&#;t involve buying things. Go for a walk, read a book, meet up with a friend. Check out this post if you are looking for some ways to have fun on a budget.
Hopefully you found some of the points in this article to be helpful. We understand how difficult it is to stop spending and save money, so we created a course on the subject. These 10 habits came from our popular free online course Break the Cycle: Spend Less & Save More.
Thanks for reading!
Need more information or want to talk to an accredited financial counsellor for peace of mind? Let us help.
Call 1-888-294- or book an appointment. It&#;s free for all Albertans.
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Healthy eating doesn&#;t have to be expensive. Here are 20 ways to help you save money on food.
1. See what&#;s on sale. Look at grocery store flyers, newspaper ads and online to see what items are on sale.
If you want to learn more, please visit our website hot sale quick coupling.
2. Make a grocery list and stick to it. Your grocery list should include the ingredients that you need to make healthy meals and snacks. Make a menu plan to help you put together your grocery list so you buy only what you need.
3. Use coupons wisely. Coupons can help you save money only if you will actually eat or use the food. Check the expiry date on the coupons.
4. Bring a calculator. As you shop, add up your grocery bill to help you stay on budget.
5. Shop at grocery stores or supermarkets. These stores offer more variety and usually cheaper prices than convenience stores or small specialty shops.
6. Get to know the food prices. Write down the regular prices of foods you buy often. This will help you figure out which stores have the best prices and if you are getting a good deal on sale items.
7. Avoid shopping when you&#;re hungry. When you shop on an empty stomach, everything suddenly looks delicious! You may be more tempted to buy unhealthy choices and foods you don&#;t need.
8. Get to know the supermarket layout and where the healthy foods are located. On the perimeter (or outside aisles) of the store you will usually find the fresh vegetables, fruit, fish, lean meat, eggs and lower fat milk products. Go to the inside aisles for other nutritious staples such as grain products, beans, nuts, seeds, peanut butter and whole grains. Skip the aisles with the pop, candy and chips.
9. Buy in season. Vegetables and fruit are cheaper when they are in season. Avoid waste by buying fresh fruit at different stages of ripeness. Choose some fruit that is ripe and ready to eat, and some that will ripen in a few days. That way you&#;ll have enough time to eat all your purchases.
10. Buy frozen or canned. When fresh is out of season or too expensive, buy frozen or canned vegetables and fruit. They are just as nutritious. If using canned vegetables, rinse them under cold water first to wash away some of the sodium.
11. Look high and low &#; not in the middle. The most expensive items are usually put on the shelves where you can easily see and reach them. Some of the less expensive items may be on the higher or lower shelves.
12. Look at the &#;best before&#; and expiry dates. Choose foods with a best before or expiry date that will give you enough time to eat it all and prevent waste.
13. Check out the &#;reduced&#; section. Reduced vegetables are good for soups and stews. Ripe bananas are perfect for making muffins or banana bread. Day old bread is fine for eating and makes good French toast or grilled sandwiches. Ripe melons can be diced and frozen, or puréed to make smoothies.
14. Choose store brands. No-name or store brand items are nutritious and are usually cheaper than the brands with fancy packaging. Try no-name or store brand products such as cereal, pasta, vegetables and canned goods.
15. Compare the unit price for similar items. The unit price tells you how much something costs per &#;unit&#; or per 100 grams (g) or 100 millilitres (mL). Don&#;t worry about using a calculator to figure this out. You can usually find the unit price in small print under the main price. This price can help you compare whether a large or small size of an item is a better buy.
Small canned tomatoes
540 mL
$1.09
The unit price is 20.2 cents/100 mL
Large canned tomatoes
796 mL
$1.69
The unit price is 21.2 cents/100 mL
Small cereal box
260 g
$4.19
The unit price is $1.61/100 g
Large cereal box
400 g
$4.99
The unit price is $1.25/100 g
16. Buy from the bulk bins. The bulk bins are good for ingredients such as dried herbs, spices, rice, pasta, flour and different whole grains. Buy only the amount that you need to save money. (If you have food allergies, be aware that bulk bins are not allergy-safe).
17. Stock up on the basics. Rice, pasta, low sodium canned fish, and dried legumes (beans, lentils, peas) all have a long shelf life. Stock up when they are on sale, but only if you have space to store them at home. See the Food Handlers&#; Storage Guide to find out how long food can last in your refrigerator, freezer and cupboard.
18. Store your food properly at home. Prevent waste by storing foods properly. Apples turn soft quickly if you leave them at room temperature, so keep them in a plastic bag in the refrigerator crisper. Store mushrooms in a paper bag, not in a plastic bag. Keep potatoes in a cool, dark, dry place away from the onions. For more tips, watch our videos How to store fruit to keep them fresh and How to store vegetables to keep them fresh.
19. Make your own meals. Whenever you can, make your own meals. It is less expensive than buying ready-to-eat, prepared meals. If you need practice cooking, see what programs your local public health unit has to help you get comfortable in the kitchen.
20. Grow your own. If you can, grow your own vegetables and herbs in the summer &#; even if you don&#;t have a backyard. Tomatoes, lettuce, basil, radishes, cucumber, spinach and many others can be grown in containers on a sunny balcony.
You may also be interested in:
10 Tips for Planning Meals on a Budget
Menu Planner Checklist
Best Buys at the Grocery Store
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