Saving money isn’t always easy but there are a few tricks you can use to end up with more cash. Here are five ways to save more.
1. Get a no-fee bank account
Are you still paying service fees for your bank account? The Canadian Bankers Association says 27% of Canadians pay no service fees but 48% pay between $1 and $15 a month in fees. That adds up to as much as $180 a year. Instead, open a no-fee account at PC Financial, Tangerine, or EQ Bank. However, it make take a while to get an account from EQ Bank due to its popularity.
2. Get a cash-back credit card
If you don’t travel very often, consider getting a cash back credit card. This type of card will give you back a percentage of every dollar you spend either as a credit or deposited to your bank account. Some cards will give you back a higher percentage based on what you purchase. For example, the Scotia Momentum Visa Infinite card will give you 4% back on gas and groceries, 2% back on recurring bill payments and drug store purchases, and 1% back on everything else. Banks make money for each transaction you make so don’t you deserve a little cash reward for helping them out?
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3. Force yourself to save
A great way to save more money is to force yourself by automatically transferring money to a high-interest savings account or an investment account. When there’s less money in your account, you’ll be less likely to spend what you don’t have. If you find it difficult to save, start with $25 a week and go from there. The more you save now, the more you’ll have in the future:
|Amount saved each week||Amount saved after 1 year||Amount saved after 5 years||Amount saved after 10 years|
4. Eat out less often
If you spend $10 a day on lunch, that works out to $50 a week or $2,350 annually over the course of the year (excluding 10 statutory holidays and three weeks of vacation). If you were to invest the same amount in a five-year GIC with a 2.5% interest rate, you’d end up with $2,658.81. If you continue to spend $10 a week on lunch for five years, that’ll end up costing you $11,750. That might make you think about bringing your lunch to work more often.
5. Keep track of your spending
You can easily see how much you spend by keeping track in an app like Mint. It’ll help you see where your money goes each month and suggest ways for you to save more. Creating a budget is the easy part but sticking to it is the hard part. An app can help you stay on track.
The bottom line
Saving money doesn’t have to be difficult. Follow one or more of these five tips and you’ll have more money in the future.
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Flickr: KMR Photography