How Can You Start Saving Money Today

How Can You Start Saving Money Today

Building up a savings account may seem like a daunting task, especially when trying to eliminate debt at the same time. Recent studies have shown that Canadians are not so great at saving money.

Canadians spend about $1.65 for every dollar they earn. What’s worse is that the amount Canadians have been saving has been declining consistently in the last 30-plus years and our debt level is increasing. A lot of Canadians think their retirement money is coming in the form of a winning lottery ticket. In case the reminder is needed here: they have a better chance of being hit by lightning twice. Barring extreme luck or the passing of a wealthy, benevolent aunt who cherished you deeply, it’s likely a good idea to save a little now. Having savings is a great way for getting and staying out of debt. Here are some great tips to start saving money right away:

  1. Save unexpected funds, such as tax refunds, gift money or bonuses from work, in a separate account.

  2. If you are paid bi–weekly, you will have 2 extra pay cheques during the year – add them to your savings account.

  3. If you receive a pay increase, continue your budget as if you were still earning the lower amount.

  4. Make savings automatic – ask your employer or financial institution to direct deposit a set amount to your savings account each pay day.

If you’re looking for a credit counsellor in Toronto, get a quick assessment with us today or call us at 416.900.2324. We will help you develop a plan, reduce your interest costs and get out of debt over time.