Where to start your savings journey
Saving money in this economy might sound impossible, but every small step you take can make a big difference; you just need to take that first step!
Starting from nothing is the most terrifying place to be. Perhaps your car just broke down and you had to empty your emergency fund to replace it. How do you begin again? The key is to start small and to start soon. Any saving is better than no saving. Look at your current expenses, and figure out where you can cut back.
Common examples include coffee, takeout, or unnecessary impulse purchases like clothes. Rather than avoiding these things, take the money you would spend and stash it away. If you start saving $10.00 a week by making your coffee at home, you will be surprised at how quickly it can add up, and how much more you can cut back.
Saving can be a healthy addiction. Once you start seeing those numbers climb, it can give you little boosts to add more money. Cutting back on your current expenses is one of many accessible options at your disposal. If you struggle with self control, here are a few options to consider to help you grow your savings!
How to automate your savings
We get it. Putting your hard-earned money into an emergency fund can feel like pulling out your own teeth. The good news is that there are plenty of online tools to make the process painless.
Use apps
For example, round-up apps and programs automatically round up your debit or credit card purchases to the nearest dollar. For instance, if you spend $12.26 daily at Starbucks, the amount will be rounded up to $13.00, and the extra $0.74 will be automatically added to whichever account you want. While this might not seem like a lot, saving an extra $0.74 each day would add up to about $270 over a year. That’s enough to cover an emergency vet visit. Alternatively, you can contribute that money to your savings account(s)!
Set up automatic transfer
Do you always get paid on the same day each month? Set up an automatic transfer from your checking account to your savings account each time you get paid. The sooner you put it in your savings, the harder it will be for you to spend it. Better yet, you can put that money to work by putting it in an RRSP, TFSA, HISA, or other savings account. If you are going to put money aside, why not have it grow in the meantime?
Evaluate your saving goals
The amount you save and your goals are up to you and your situation. Don’t expect to be able to save it all up overnight. Growing your savings is something you can do over time, but the sooner you start, the better. Having savings on hand is important for many reasons, including emergencies. If you're curious about how much you should set aside for emergencies, check out this blog post!