Small ways to increase your savings

Piggy banks

It’s always a good idea to put some money away for the future, whether it’s for a short term goal such as a vacation or a longer term goal, such as a down payment. Between bills, housing expenses, and other purchases, it can sometimes be difficult to find extra money to put away. Here are some tips to increase the amount of money you’re putting away.

  1. Set tangible goals – Working towards a savings goal will not only motivate you to save, but it will also increase the chances that you stick to your budget and avoid dipping into your savings account. Do you want to save to buy a house? Go on a vacation? Pay down debt? No matter the reason, having a goal to work towards will encourage you to stick to your savings plan and produce results.
  2. Cut back on your recurring monthly expenses – Your recurring monthly expenses are the ones that usually cost the most, but luckily these are the ones you have the most control over. Review things like your cell phone plan and your cable TV package to see if there’s anything you can remove to reduce your expenses. Have any subscriptions you aren’t using? Cut them to save some additional money!
  3. Sleep on it – When you’re shopping and find something that you feel you have to buy, make yourself wait. Give yourself at least a week; often our purchases are impulse decisions, or are influenced by our emotions. Try to evaluate what you really need, rather than what you just want. This will hopefully reduce the temptation to spend.
  4. Record your expenses – Often, we find us asking ourselves, “where did all my money go?” It’s easy to spend, and the first step to saving money is to figure out where your money is going. Keep track of your expenses to see where you could cut back and where you can save - this will help organize your expenses into a workable budget.
  5. Make it automatic – Set up automated transfers between your chequing and savings accounts. You have the power to choose how frequently, and how much you’re putting away. This will ensure you are putting money away regularly, and you won’t even have to think about it. Whether it’s a short term or long term goal, determine how much you want to save and what your deadline is in order to stay on track.