10 Money Saving Tips!

Financial Tips Jag Dhamrait 10 Jun

a pink piggy bank with change all around.

When it comes to saving money, there are a lot of little things you can do that add up to make a big difference!

Here are 10 of my favourite money-saving tips to help get you started today:

  1. Automatic Savings are one of the most effective ways to save because you can’t spend what you can’t access! Instruct your employer to transfer a certain amount from your paycheck each pay period into an RRSP or savings account (or both) or set up automatic transfers in your banking account to coincide with your payday.
  2. Consolidating Debt will result in a single monthly payment and lower interest costs! Many people don’t realize just how much money they are wasting on interest each month, especially if you have multiple loans or credit cards. Consolidating debt can help you gain control and maximize spend on the principal amounts to pay off loans faster.
  3. Budget with Cash if you have trouble with overspending or find it too easy to use your card. After your bills are paid, take out the remaining cash (spending money) and only use that. Once the cash is gone, you’re out of money until next payday! Having physical cash in hand can also help you think twice when making purchases.
  4. Buying in Bulk is a great way to save a bit here and a bit there when doing your regular grocery shop or purchasing other items. Know you’ll need more? Stock up at once for bulk savings, which will help you in the long run!
  5. Before Buying there are two things you should always do. The first is to wait at least 24 hours and the second is to shop around! If you still want to buy something the next day, make sure you get the best price available!
  6. Plan Your Meals. Most of us don’t have time to make breakfast (let alone lunch!) before we fly out the door for work. But what if I told you that getting up an hour earlier could save you over $100 a week!? Just think about how much you spend going out for breakfast AND lunch each day? Groceries are a lot cheaper and you can even prep a few days worth of meals on Sunday while you get ready for the week.
  7. Think in Hours versus Dollars every time you are looking to make a purchase, especially large ones to help you understand the TIME value of money. A new $24 Blu-Ray = 1 hour of work. A brand-new mattress = 41.67 hours of work. Understanding the time that went into earning money for a purchase can help with reconsidering frivolous items, or encourage you to look for the best deal on necessary products.
  8. Utility Savings can help you save each month! Don’t blast your A/C with all the doors in your house open, don’t pump the heat without sealing cracks and consider things like installing water-saving toilets and running cold-water wash cycles to save energy (and money!) every day.
  9. Master DIY – While sometimes you can spend $120 to make a $20 item yourself, there are some things that do benefit from DIY, such installing dimmer switches, that can help save you money in the long run.
  10. Save Windfalls and Tax Refunds for a rainy day. A good rule of thumb is to put 50% of bonuses, tax refunds or other windfalls into your savings account and put the rest against loans owing. While you might want to go on a shopping spree or plan a vacation, paying off your debt NOW will free you up in the future.

Economic Insights from Dr. Sherry Cooper – June 2023

Economic News Jag Dhamrait 1 Jun

Image of Dr. Sherry Cooper from Dominion Lending Centres
 

Once again, the Canadian economy is running hotter than expected by the Bank of Canada. The economy continues to exhibit excess demand conditions. In particular, labour markets are very tight, the unemployment rate is near a record low, and wages are rising by more than 5%.

Consumer spending is still strong, and the housing market has bounced considerably. Home sales were up 11% in April, prices are rising again in many regions, especially the GTA and GVA, and new listings are so slim that it is now a sellers’ market. This should bring some potential sellers off the sidelines in May and June. However, demand is likely to remain well more than supply, given the influx of many immigrants and the constraints on the construction of new housing.

The April inflation data was stronger than expected at 4.4%, indicating that the mid-year forecast of 3% might well be overly optimistic. Some are already calling for a rate hike by the central bank this month or in July. While that might be premature, the Bank will consider at least one more increase in the overnight policy rate if the May data is robust.

This is at a time when homeowners are already feeling the pinch of the rapid rise in interest rates over the past year. Homeowners who bought in 2020 and 2022 and financed with variable-rate mortgages are already under pressure. And those with fixed-rate mortgages will refinance at substantially higher interest rates.

Already, many households have monthly payments that do not cover the interest on their loans, let alone the principal. Many lenders are allowing extended amortization. CMHC announced they would not extend the amortization of newly insured mortgages beyond 25 years.

One thing is sure. Do not expect monetary policy easing any time this year.