Happy New Year!!
Let’s start 2015 off right by going over some simple tips that will help you save money.
Start saving a percentage of each pay cheque you receive
You may have heard the expression pay yourself first. This is the idea that you set aside some money for yourself as soon as you get paid. Do this before you pay any bills, or make any purchases. In the famous book The Wealthy Barber by David Chilton, it is suggested that you put aside 10% of your earnings. This might be too much for some, but don’t give up if you cannot set aside 10%. Instead, decide on an amount that you can save and make sure to transfer it to your savings account each time you get paid. My recommendation is to setup an automatic transfer through your bank, BUT only if you will not be charged any banking fee’s for doing so.
Review Your Spending
Take a look at how you spent your money in the previous year and look for areas where you can save. Do you buy a coffee each morning? Do you currently bring your lunch to work or eat out? There are lots of little things that add up so start reviewing your bank statements to find anything that is draining your wallet.
Pay Off Debts
It might not seem so obvious, but by paying off debts; you are helping yourself in the long run to keep more of the money that you earn. A good method for paying down debts is to review your spending and try to identify money that you normally spend on discretionary purchases. For example, if you typically spend money on buying lunch at work you can start making lunch the night before and put the money you save towards your debt. The more areas of your spending you can do this with, the faster your loans will be paid off.
Create a Meal Plan
Each week, create a meal plan for your breakfast, lunch, and dinner. Once you have your plan created, make a grocery list that contains only the items required for your meals. This will help you buy just the necessary ingredients for the week and will prevent anything from not getting used and going to waste.
Bring Your Own Lunch (BYOL)
Far too many people buy lunch during the work week. Most restaurants are going to charge at least $5 per meal which adds up quickly to $25 per week, or $100 per month and this is on the conservative side. If you do not have time to make lunch in the morning, you can always make bigger dinner portions and bring leftovers for lunch the next day. This is an easy way to save money and eat healthier too!
Start walking to destinations that are not too far away. Not only will you be saving money but it is great exercise. This is definitely easier to do in the summer months.
If you can put all of the tips above into practice, you will be well on your way to saving money, paying down debts, and getting healthier for the new year.
Please share any tips you might have by leaving a comment below.