• Adam Stapley

7 Easy Ways to Save Money

Building a budget and saving money are savvy financial habits to develop. Whether your long-term goal is to buy a home, pay for your childrens’ education or just enjoy travelling the world, these skills are good to begin practising every day. This article will help show you 7 easy ways to save money.


A clear jar with change and a piece of tape marked "House Fund"
7 Easy Ways to Save Money: What are you saving for?

Automate Your Savings


With the cost of living in many parts of Canada rising every year, it can be difficult to save money. One of our favourite money saving tips is to automate the process of saving money.


The temptation of money sitting in a chequing or savings account leads many Canadians to overspend their budgets. Contributing to an RRSP account can help save money, build a better financial future and lock your savings in making it harder to spend money.


Finance apps like Moka invest your spare change and make automatic deposits to RRSP, TFSA and non-registered savings accounts. Our favourite feature is the round-up feature which invests spare change from regular purchases and helps save you money.


Shop Around for Life Insurance


Life insurance is one of the wisest investments you can make to protect those we love most. Life insurance is a policy that pays a beneficiary in the unfortunate event of an insured party’s death. There are also insurance policies which provide protection in case of disability or critical illness.


Without the proper guidance, many Canadians end up overpaying for a life insurance policy. For this reason, it is very important to shop around when looking to purchase life insurance. Digital life insurance advisors such as PolicyMe can provide the lowest insurance rates as well as expert advice, enabling you to select the coverage that suits your specific needs.


Use a Mortgage Broker to Buy Your First Home


Are you thinking about buying your first home in Canada? If so, this advice is the most important thing you will learn today. Use a mortgage broker when looking for a mortgage. Why? Not only do mortgage brokers have access to competitive interest rates, they also provide strategies and money saving tips that can help you save money throughout the full life of your loan.

Prepayment privileges, penalties and other features of a mortgage can have long-term impacts that can save or cost you money. An independent mortgage agent acts on your behalf and can often negotiate with your own bank to ensure that you receive the best offer possible. Learn more about how a mortgage works with this article.



Fire Your Bank!


We want to let you in on a little secret. Each month, your bank is stealing money from you. Unfortunately for you actually agreed to this monthly theft when you signed up for an account. Bank fees - remember those?!


When you deposit money into a bank account, the bank uses that money to lend to other

Man screaming into phone
What has your bank done for you lately?

customers. They offer car loans, mortgages, credit cards and other types of credit for which they earn interest on. At the end of the month, they give you a share of this interest (between 0.05% and.15% per month) and charge you $10-$15 for “allowing” you to deposit your money.


Meanwhile, there are banks that allow you to open a no-fee bank account, which saves you $120-$180 per year! In addition to that, some of them pay the highest savings rates in Canada. Check out some of these online banks with no-fee banking options.


Pay Your Car Insurance Annually


When buying car insurance, most Canadians are concerned about deductibles, coverage, rental cars and other add-ons. A great money saving tip is to pay for car insurance upfront once per year, rather than monthly.


Insurance companies charge a premium for allowing customers to pay insurance monthly. Sure, it costs a lot of money when paying for car insurance for the full year. Yet, this annual cost adds up to hundreds of dollars in savings and is a change worth making. To ensure you have enough money for your policy next year, budget the policy premium divided by 12 each month to ensure you save enough for the policy next year.


Start Making Your Coffee at Home



Steaming cup of coffee in a person's hand

Still grabbing a Venti Cappuccino from Starbucks on the way to work? This easy money saving tip can potentially save you almost $1,000 per year!


The average latte at Starbucks costs around $5 at most locations in Canada. If your weekly coffee habit involves this expensive little drink, you’re likely spending $1,305 per year - and that’s if you don’t grab one on weekends! Making this drink at home costs less than one dollar which means you’re saving $1,044 per year.


Check out our favourite latte recipe here!



Change Your Data Plan


Reading this article on your phone? Most Canadians exist in two forms. Those that go over their data limits every month and those that use a lot less than they have. In either case, adjusting your data plan is an easy way to save money each month.


Data overage charges creep up and can cost hundreds of dollars each year. Adding an additional 10 GB of data easily helps you save money. For those that aren’t using as much data as they pay for, reducing your plan by 10 GB can also save you over a hundred dollars each year. Either way, only use what you pay for, no more and no less.


Summary


Personal finance doesn’t have to be difficult. Wise financial decisions happen every day with money saving tips like these. The saving doesn’t need to stop here. Can you think of easy ways to save money? If so, we’d love to hear how you’re saving money. Leave a comment below and share your easy money saving tips with us.


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