•
Everything’s negotiable - One rule of thumb is to never
pay retail because more than likely you can usually talk the price
down. This also means that you should shop around for better auto
insurance rates, mortgage plans, credit-card interest rates, and phone
companies. You can do this by calling your credit-card companies and/or
your phone company and tell them that you are thinking about moving
your money to another company that offers lower rates, better packages,
more benefits, etc. The secret is that most customer representatives
have the authority to significantly lower your interest rate or offer
you better deals. This is because your business is literally worth
thousands to them. Remember the first rule about negotiation: never
accept the first offer.
•
Purchase store brands - Clark Howard, co-author of “Clark’s
Big Book of Bargains” has stated that store brands usually cost
about 40% less. This is because there is no middle-merchant who the
store must purchase the products from, so quality isn’t compromised.
Every time you go to the grocery store, you should try purchasing
one more store brand product.
•
Buy used over new - This little tip comes especially in handy
when you are purchasing a car. You will be able to buy a good, high-quality
car for practically half its original price after two years of depreciation.
The trick to buying used is to focus on high-quality merchandise.
You should also think about buying used when it comes to books, furniture,
music, and anything else where the hygienic risk you take isn’t
too high. The flipside to this rule is to sell everything! Garage
sales are a surprisingly lucrative venture, especially when you are
getting money for something that was going to end up in the trash
or goodwill anyway. And do not fret. No garage, no problem. If you
live in an apartment complex you can organize a community yard sale,
that way your neighbors could earn some extra pocket change as well.
•
Pay yourself before paying anyone else - With every paycheck
you earn, automatically transfer part of it to a retirement account
and another part to a short-term emergencies fund. David Bach, author
of “The Automatic Millionaire” suggests saving one hour
a day of your income each week for the retirement account, and a salary
contribution equal to thirty minutes a day is a good amount to put
towards a short-term emergencies fund. By the end of a year, you will
be quite surprised what this can amount to.
•
Save on phone expenses - Having a cell phone is convenient,
but do you really need it? Avoid having one for as long as you possibly
can. But if you must have one then the most economic choice is a prepaid
plan, and try not to agree to contracts that lock you in for years.
•
Shop around for the best credit card that meets your lifestyle
- Make sure you select a credit card that matches your lifestyle.
For example, there are plenty of cards with rewards such as travel
rewards, gas rebates, and merchandise…the list is endless. This
helps you save without necessarily changing your buying behaviour.
To help you find the best credit card for you visit: www.fcac-acfc.gc
(Financial Consumer Agency of Canada) and check out their credit card
comparison chart.
•
Exercise willpower - This is probably the most harsh yet
most rewarding tip of all. You must exercise restraint when it comes
to spending. What this means is that instead of buying fast food,
eat at home. Bring your morning coffee and lunch to work. Want to
spend less money on gas? Stay home or carpool. You must try to spend
less than what you earn, but that doesn’t mean that your quality
of life has to decrease as well. One suggestion is that while your
in you money-saving mode (and hopefully you will be for a while),
try to avoid television, magazines and major media sources because
they have the tendency to fool you into thinking that you need to
make unnecessary purchases to be a fulfilled human being. If you are
really serious about saving, you should even consider cutting out
the cable completely. Not only does this equal more money but also
more time. Once you start avoiding those things you will have more
time to spend with your family, friends, going outside, exercising,
and doing things that really make you happy…other than shopping!
•
Beware
of impulse purchases - Buying small items on a whim may not
seem to matter to your finances; however, if you practice impulse
buying often enough, those little purchases really add up.
•
Track your daily expenses - Keep your receipts for the last
three to six months and review them, including even the small purchases
you make on a regular basis, such as a cup of coffee. Also keep track
of any withdrawals that you make at your bank. Once you’ve gone
through them, you should ask yourself what dollars actually went towards
satisfying a need, and what dollars satisfied a want. You may discover
that some dollars didn’t satisfy either! This will help you
identify any unnecessary spending and may help you to identify those
stores where you can’t resist spending your hard-earned cash.
Credit
Canada’s
portable Monthly Budget Tracker is a great tool
you can take with you just about anywhere for a reliable spending
record.
•
Manage your credit wisely - Avoid paying only the
minimum on your credit card(s) and be sure not to charge more each
month than you are repaying to your creditors.
•
Save money for large purchases – If you plan to buy
a large item, save the money in a savings account first before you
buy them. Make sure everything you spend is listed in your budget
booklet (Monthly Budget Tracker) including any small items such as
coffee, gum, candy bars, etc.
•
Leave your instant teller card at home - The temptation to
withdraw money may not be as great if you have to physically go into
the each time.
•
Use your “piggy bank” to help you save - Although
this is not a planning tool, putting away your change on a daily basis
can help you save for small ticket items.
