Everyone loves to save money as it allows us to live a relatively stress-free life. The money we set aside gives us a safety net in an emergency event. For instance, if your vehicle breaks down, you can dip into your savings to get it running again.
Similarly, if you need to undergo an emergency medical procedure, you can use the money you set aside instead of going into debt.
Saving is also good for your future generation. The cost of education in the country is increasing every year and coping with these demands without burdening yourself with debt is now more difficult than ever.
By setting some money aside every month, you can save a decent amount for the education of your children.
There are several money-saving life hacks that you can use to set aside some cash every month. We’ll discuss them here to help you save so that you can afford the necessities in life without going into debt.
1. Record Your Expenses
One simple way to cut your bad spending habits is to write down all your expenses in a journal. It allows you to see how much money you are spending.
After a certain period, – like one week – review the items you have spent on. This way, you can assess all your expenses and see which are necessary and which ones you can go without.
2. Prioritize Saving
Many people save what is left after spending and mostly end up with nothing left to put in their piggy bank at the end of the month. If this is your idea of savings, you’ll save very little or nothing at all.
So instead of saving what’s left after spending, create a separate account and put some cash in it every month as soon as you get your paycheck.
Avoid dipping into these funds unless there’s an emergency.
This would help you set aside some money every month without even having to think about saving.
3. Make a Grocery List and Stick to it to Save Money
If you go to a store and start shopping without a list, you might end up spending a lot of money on things that you don’t need.
The reason is that when you shop without a grocery list, you become more prone to impulse buying and purchase stuff on a whim, often due to discounts or strategic placement of products.
With a grocery list, you can avert this behavior and stick to the essentials to cut the grocery expenditures.
4. Eat Smartly
The average Canadian household spends over 13.4% of their income every year on food. This is a lot of money that you can save by avoiding the urge to dine out. If you can’t completely stop eating out, reduce the frequency of it.
For instance, if you eat at a restaurant twice every month, dine out only once a month. This way, you could cut your spending on food by upwards of 50%.
5. Don’t Buy Items Just Because They are on Sale
Many people think that chasing sales will save them a ton of money, but there is growing evidence suggesting otherwise. It is proven that something that costs $200 normally is less appealing to a person than an item that is $400 with a 50 percent discount because sales and deals excite people.
The cost may be slashed and it may appear like an amazing deal, but you won’t be saving money with purchasing an item on sale. As tempting as the deal may be, stick to your budget and your grocery list and don’t get drawn into seemingly compelling offers.
Ask yourself, ‘Is it something that you really need?’ If not, hold onto your money.
6. Review Your Credit and Debit Card Statements
Review your card statements every month. It isn’t rare for random charges to appear on accounts and it is easy to overlook them when you aren’t reviewing your statements each month. If you have multiple cards, link them together as this will allow you to see all your transactions in just one place and make reviewing easier.
7. Turn off Your AC or Heating Unit When Not Home
If you and your family aren’t home, why keep the AC or heat on? An average Toronto household spends around $2,400 on energy bills each year, which means that there is a significant saving potential here.
Maintaining the perfect level of cooling or heating for an empty property is throwing dollar bills away, especially if you are living in a full-size house. So when you aren’t home, turn the AC or heat off to save your hard-earned dollars.
8. Switch the Lights off
Another simple money-saving life hack is to switch the lights off when you don’t need them. This holds true even if you are using energy-efficient LED bulbs. The average household has about 40 light bulbs. The cost of lighting your house accounts for 20% of your electricity bill.
If you have a habit of leaving the lights on when you exit a room or leave the house, you are losing a lot of money that can go into your precious savings account.
9. Take a ‘No Spend’ Challenge
People generally spend the most on Saturdays. If you also have a habit of going to the mall on weekends, try a no-spend challenge with your friends where you spend nothing on Saturday. This will help you cut your spending. You’ll feel a sense of achievement knowing that you were able to resist shopping on your favorite day of the week.
Now that you know all these amazing money-saving life hacks, start implementing them in real life and see how much cash you can save every month. You might find it hard to make changes in your life, but if you keep reminding yourself why you are doing this, you should be able to stick to these money-saving life hacks.