Smart Money-Saving Tips

Are you looking to increase your savings? You’ve come to the right place! Follow the tips below to help you save more money. 

1. Track your expenses

The first step to increasing the money in your savings account is to determine how much you spend. Tracking and recording all your expenses (and we mean all - from coffee to groceries to gas) will give you an idea of how much money you spend each month and what it is you spend it on. In turn, this will allow you to identify where you could be saving money. You can track your expenses the old-fashioned way, with pen and paper. Or you can create a Google spreadsheet, use a free online spending tracker app, or take advantage of the tools available through your financial institution. Remember to check both your credit and debit card statements when recording expenses. Once you’ve made a list of all your expenses, categorize them according to types, such as groceries, phone bills, mortgage payments, gas, and more. From there, spend time thinking about whether there are certain expenses you could afford to cut down on or maybe even do without altogether. 

2. Invest in a GIC

Our second smart money-saving tip? To invest in a GIC. Guaranteed investment certificates, otherwise known as GICs, are a type of investment that works a little like a high-interest savings account but with better rates. When you buy a GIC, you effectively agree to lend a bank or other financial institution money for a set length of time (known as the term). In exchange, you earn interest on the money you’ve loaned them. With a fixed-rate GIC, you are guaranteed to get the amount of money invested back at the end of the agreed-upon term and the interest earned on your investment. GICs are low-risk, making them a wise choice for people who simply want to grow their savings. 

3. Make savings goals

Another tip for boosting your savings is to set goals. Begin by thinking about what it is you want to save for. There might be a specific and major purchase, like a future car or home, or it might be something smaller or in the shorter term, such as a vacation with your friends. Whatever your savings goals, whether long- or short-term, write them down and estimate how much money you will need to save to make each of them come true.

4. Set up automatic payments to your savings account

One final way to increase your personal savings is to make savings automatic by setting up automated payments from your chequing account to your savings account. Most financial institutions allow users to schedule automated transfers between accounts. So if you receive a regular pay cheque via direct deposit into your chequing account, why not schedule a monthly or biweekly money transfer? Choosing a set amount of money from each pay cheque to put in savings and automating the process can help you stay on track and achieve your savings goals. Plus, when the money is already in your savings, you’ll be less likely to overspend on things you don’t need. 

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