When you save your money you will be happier and relieve life’s stresses. There are so many ways to spend your money, a lot of temptations in the world. We pay some of the brightest people in the world to develop campaigns and marketing to try and get you to spend your money. But who helps you try and save your money?
One of the most important reasons to save your money is in case of emergency. Life is crazy and there are always unexpected things come up that we need to spend money on. For example, maybe you get sick or injured and are off work for a while… while you should have some form of critical illness or disability insurance, having some savings will take away the stress in case something happens.
Chances are you probably have some life goals or dreams that you hope to meet one day. For example, maybe you want to go on a round the world trip, buy a cabin on the lake, or you want to buy a business, perhaps a new sports car or boat. Whatever your dreams and goals are they are going to depend on one thing: a financial plan with goals. How do you get there? By saving your money and making your money work for you. Just putting it into your bank’s savings account is not going to get you to realize your goals quickly.
If you have kids you probably tell them to save their money so they can buy something in the future they want. The same applies to you. One way to save your money is to create a budget and follow it. Here is a link from Manulife on how some sample budgets.
Here are a few tips on how to start saving more money:
- Kick start your savings plan by writing down your financial goals and dreams
- Look at small ways to reduce your expenses: shop around for your home insurance, cut out those extra coffees and business lunches, it will help you also cut something else down 😉 like your belt size.
- Get cheap! Track every expense. Look at the month over last. Find ways to cut out unnecessary costs.
- Taxes: one out of two of your biggest expenses are your taxes. Make sure you take advantage of all the ways to save taxes, have a good accountant review your taxes each year.
- Pay with cash instead of cards. Unless you always pay off your credit card balance at the end of the month use cash. If you are paying credit card interest, pay this off right away and stop using the card. Use cash instead. You will know when you run out with cash.
- Make savings automatic. You can create an automatic withdraw from your account into an investment or savings account. Make your money work for you.
- Vacation in the off season.
- Do small things around your house to reduce expenses, change light bulbs, turn the heat down or off. Create a culture in your house that turning off lights and the heat down as important and explain why.
- Buy in bulk, shop around, and stop buying impulse items. You know those items near the cash register? They are impulse buys. Never go grocery shopping when you are hungry.
- Downsize your car/ truck. Do you really need a gas guzzling SUV or truck? Buy a small gas efficient car.
- Really look at those expenses, again and again, each month after each month. Look at your telecommunication and entertainment expenses? Are there cheaper cell phone, cable, and Internet options out there? Those companies are in business to provide you a service, but bottom line they are in a business to make money. Challenge your service provider to cut your costs. You would be surprised.
- Find things to do that don’t cost money. Hobbies and entertainment that cost a lot of money aren’t good for the bottom line. Go hiking, pack a picnic, take up running or go to free community events. There are always free events going on.
Adonai Financial is a Nanaimo based financial wealth management company. We specialize in helping the people of Nanaimo and Port Alberni with savings plans and their investments. We have been in business for over fifteen years and have helped a lot of people save money and come up with a savings plan that works.
Some of our services we offer from Nanaimo include: RRSP’s, RESP’s, TFSA’s, RRIF’s,