We are living at a time when the economy is incredibly expensive. The cost of living is very high in almost every city, necessitating the need to invest and save more money. It’s no doubt that many people want to save money, but they don’t know how to do it.
If you want to save but you don’t have any savings tip, worry no more because you are at the right place. In this article, we explore the most helpful financial hacks that can help you save thousands of dollars within a short duration. Let’s get started.
1. Save for Your Kids’ Education in RESP
Your kids’ future education is the first and foremost thing to consider as you budget with your finances. The cost of education has risen steadily over the past few years, forcing parents to look for ways to help them leverage tuition fees and other education expenses.
In Canada, the government came up with the Registered Education Savings Plan (RESP) to help Canadian parents save for their kids’ post-secondary education. RESP has double incentives, which are a tax-free growth of savings and a $500 annual grant entitlement.
If you save education funds in RESP account, the government will contribute 20 per cent of your investments up to CA$2,500 per year. In other words, you’ll receive an additional $500 every year if you contribute at least $2,500 into your kids’ RESP accounts. You can visit the website cbj.ca/knowledge-first-financial-reviews to find the best RESP Company.
2. Automate All Your Savings
Saving money using traditional method may lower your savings, especially when you tend to forget about many things. You can authorize your employer to send part of your salary to all your savings accounts through direct deposits, including your kids’ RESP accounts.
When you direct all your income into a checking account, the chances are high that you’ll forget to save. Saving money through direct deposits can build your savings significantly. The good news is that you won’t have to think about it once you’ve authorized payments.
Automated savings will also help you avoid keeping the money as an afterthought. If you are used to saving money that is ‘leftover’ after paying all your expenses, you might not save much. Savings should be a top priority, and you must add it in your monthly budget.
3. Track Your Bills and Payments Due Dates
Did you know that paying your bills late could attract penalties and additional charges? If you want to save more money, track the due dates of all your monthly bills and payments to avoid late payment charges. If you are forgetful, you can set up reminders.
The best way to keep reminding yourself about your bills and payments is by setting up calendar reminders and alerts for every finance-related actions. They may include paying utility bills, taxes, and loans. Most service providers will always send reminders too.
4. Reduce or Eliminate Unnecessary Expenses
One of the essential ways to save thousands of dollars is to cut back unnecessary expenses in your budget. In most cases, people subscribe to things they don’t need much and end up paying for them monthly. Eliminating such costs can build your savings.
Other ways to cut back on unnecessary expenses include:
- Prepare meals at home and carry them to work
- Make a shopping list before going to the store to avoid impulse buying
- Cancel club memberships that are not helpful
5. Consolidate All Your Debts
If you are struggling to pay multiple debts, you can consolidate them all by taking out a debt consolidation loan. It involves combining all your debts into a single loan, allowing you to settle your debts quickly and efficiently.
Debt consolidation loans generally have lower interest rates compared to multiple credit cards. So, consolidating your debts will help you save thousands of dollars that you would have paid for each credit card. Besides, it reduces the chances of forgetting payments.
Final Words
Implementing the five financial hacks mentioned above can help you save thousands of dollars. All you need to do is prepare an effective budget that prioritizes on savings. Also, cut back your expenses on utility bills like electricity by adopting energy-saving measures.