We can't say it enough: starting to save early pays off. Even with a tight budget, it is possible to make small savings that will add up.
Do you know where your money goes?
To know how much you can save, you need to know how much money you have. Start by noting every expense for a month.
Your expenses should be divided into two groups:
- Fixed expenses: rent or mortgage, electricity, heating, insurance, municipal and school taxes, etc.
- Variable expenses: food, hobbies, clothing, restaurants, outings, etc.
You might be surprised to see where your money goes. Seemingly insignificant expenses can represent a significant amount at the end of the month.
Start small, but start today
The good news is that these small non-essential expenses are often the easiest to cut. Here are some examples:
- Buying a coffee every morning at the office.
- Eating out every lunch.
- Getting excited about sale products you don't really need.
- Making impulsive purchases at the grocery store or shop.
If you eliminate an expense, avoid replacing it with another. Instead, put aside the money you would have used for that expense. Even if it's only $5 a week, it's a good start. Over time, you will surely be able to save more, but at least, the sums already invested will have grown.
Other tips for easy saving
- Scan flyers and plan your meals based on discounts. Ask for a rain check if the product is no longer available.
- Bring your lunch to work.
- Make your coffee at home and bring it in a travel mug.
- Withdraw the money you need for the week and leave your credit cards at home.
- Put your change in a jar or piggy bank every day. Deposit the money thus collected into a savings account a few times a year.
- Do things yourself, like mowing your lawn or clearing your driveway.
- Repair items that can be repaired instead of buying new ones.
A budget to help you stay on course
Once you have established what your fixed and variable expenses are, you can establish a budget. No need for it to be complex. Based on the one-month assessment you made beforehand, you must:
- Create expense categories,
- Determine the amount you want to allocate to each,
Respect your budget.
