Start Your Money Saving Challenge for the Summer
We all want to save money, but the path to doing so can feel a little daunting. However, the truth is, you don't need to wait for a lottery win or a significant increase in income to start saving. With a bit of planning and discipline, you can begin building your savings today.
Even if you put one dollar into savings today, forward is forward — as we like to say. In this blog post, we'll outline a simple and effective money-saving strategies you can follow, so you can get closer to that goal you're saving for. Your savings challenge for yourself can start right now.
Step One: Decide What You Want to Save For
The first step in any savings plan is determining your goals. Whether it's for home improvements, building an emergency fund, purchasing a vehicle, funding education, or saving for a vacation, having a clear target in mind will help keep you motivated and focused.
Step Two: Open a Savings Account
Once you've established your savings goals, it's time to open a dedicated savings account. Be sure to shop around and compare account features and fees using resources like the Financial Consumer Agency of Canada's bank account comparison tool to find the best option for you.
Step Three: Find the Money
Now comes the fun part — finding the money to put into your savings account. Here are some practical tips to help you kickstart your savings journey.
Pay Yourself First: You may have come across the term "Pay Yourself First." It simply means setting aside a portion of your paycheck for savings before addressing other expenses. While 10 per cent is often suggested, it's important to find what feels comfortable for you. Maybe a little more or a little less would be best to help you reach your goals.
Reduce Food Costs: We've got a few tips to help you save at the grocery store, and you might already be doing some of these! Start by making a list before you head out to prevent impulse buys and overspending. Planning your meals for the week can also help you avoid eating out and spending more. Keep an eye out for coupons, whether they're in-store, online, or in flyers. Some stores even show you how much you've saved on your receipt – consider putting that amount into your savings account each grocery day for an extra boost!
Reduce Transportation Costs: For those with a vehicle, try mapping out your routes for longer journeys. This can help cut down on unnecessary driving. Additionally, take a look at your usual shorter routes to to see if they're the most efficient — you might be surprised! If you’re able, perhaps you can consider walking to a destination you usually drive to, which will save you money that can go towards your savings goal.
Do a Clean Sweep: Whether it's old decorations, furniture, tools, clothes, or anything else cluttering your space, you can try you hand at selling some of these items. Take some time to declutter your home and identify items that no longer serve a purpose. Many people have turned to Facebook Market Place to sell items locally — just remember best ppratices when selling items online, like having the actual sale at a public location instead of at your doorstep. Selling these items not only helps clear physical space but also boosts your savings. Every dollar earned from selling your unwanted items can be a step closer to reaching your savings goal. So, dive into your closets, drawers, and storage spaces, and start selling on Facebook Marketplace today!
Try the No-Spend Challenge: Consider trying your own savings challenge. One popular option is the No-Spend Challenge. For a set period, you challenge yourself to limit non-essential spending, focusing only on essentials like food, housing expenses, and gas. Afterward, you'll likely find extra funds to put away in savings. If that seems daunting, start small by pausing one particular spending habit for a while, like a weekly meal out, or a regular trip to your favourite store. Another idea is to pause one of your subscriptions for a set amount of time, and then put that money away. There are many ways to challenge yourself, and we believe you can find one that suits you!
Save Two Full Pay Cheques a Year: Similar to the first option, “Pay Yourself First,” if you’re paid bi-weekly, you might have noticed that twice a year you get paid three times in one month. There’s a term called the 24/2 Rule, and for those two months, you take that third paycheck and put it into your savings.
Step Four: Automate and Protect Your Savings
To make saving easier, set up automatic transfers from your checking account to your savings account with each paycheck. Consider removing easy access to your savings account from your debit card to prevent impulse spending. Lastly, explore investment options with your bank to help your savings grow over time.
Embarking on a money-saving challenge may seem daunting at first, but with determination and a solid plan in place, you can achieve your savings goals. Remember to be realistic about your savings targets and adjust as needed along the way. Starting small is perfectly fine — what matters most is taking that first step towards financial security. We believe in you!
Bonus: Resources!
If you have ingredients in your home that you know you need to eat before it goes bad, but not sure what to make with it, you can try supercook.com. This is a website that helps people find recipes based on the ingredients they already have at home. You can input the ingredients you have on hand, and Supercook will generate recipe suggestions from its database. It's a useful tool for minimizing food waste and making the most out of the ingredients available in your pantry.
Lastly we have the Cutting Expenses Tool by the Consumer Financial Protection Bureau (CFPB). It’s a resource designed to help people identify areas where they can reduce their expenses and manage their money more effectively. It also provides worksheets to help you track your spending, prioritize your wants and needs, so you can make informed decisions on where to cut back to increase your savings, and reach those savings goals!
