5 Ways to Kickstart Your Savings Journey

May 12, 2023

Everyone knows saving money is essential. The issue is that we’re all either too scared or too lazy to get started! We’re all guilty of spending more than we should every now and then. Eating out too often, shopping for groceries without a game plan, none of these things are enormous purchases, but when you add up the small stuff, it ends up being a decent chunk

Everyone knows saving money is essential. The issue is that we’re all either too scared or too lazy to get started! We’re all guilty of spending more than we should every now and then. Eating out too often, shopping for groceries without a game plan, none of these things are enormous purchases, but when you add up the small stuff, it ends up being a decent chunk. But if you’re reading this, chances are you’ve decided to cut out the excess spending & start saving, and we’ve got to say, we’re proud of you for that! This is why we’re here with some actionable tips & tricks that will help you kick-start your savings journey. 

 

How much should you be saving? 

The first step to starting your savings journey is setting a goal. This will help you calculate how much money you should save from your net income after taxes and all other necessary expenses. According to sources, the average Canadian household saves between $1,249 and $2,367 every year after taxes. Now, this might seem a lot, but it is essential to remember that this number may be higher or lower depending upon your income, expenses, as well as long-term and short-term goals. There is no right or wrong amount to save; it's all about what works for you!

 

A good strategy to follow can be the 50/30/20 strategy which helps you determine your individual savings goal. This helps break down your in-hand income into three parts; 50% goes towards your needs & necessities, 30% towards your wants, and 20% towards your monthly savings and investments. 

 

Now that you know how to set your savings goal, here are some tips to help you get started: 

 

Create a budget and stick to it:

One of the most crucial steps to increasing your savings is creating a monthly budget & sticking to it as much as possible. While expenses like your grocery bill and rent are essential, you can still evaluate your needs & cut back wherever you can. Next time you’re out for groceries, make a grocery budget and do not stray from it. This way, you can fulfill your needs while also avoiding unnecessary spending.  

Make the most of technology: 

We live in a magical time where there is an app for ALL our needs! Budgeting apps can aid you in optimizing your expenses like rent, groceries, ordering in, and any other discretionary spending. Download a budgeting app to help you stay on track with your savings journey.  

Cut out the takeout: 

When you're hungry and want to grab a quick bite, it might seem like ordering takeout is the only option. But if you make most of your meals at home, you'll save money in the long run. Start including healthy snacks on your grocery list & cut down the amount of effort that goes into cooking your own food by meal-prepping over the weekends. Similarly, skipping your daily trip to Starbucks and brewing coffee can add up to a nice chunk of monthly savings! 

Unsubscribe from unnecessary expenses: 

You might be able to save on your monthly bills by switching to less expensive phone services. In addition to your phone bill, unsubscribing from additional or unnecessary monthly subscriptions, like multiple streaming subscriptions or a ‘Cheese of the Month club, can also help you lower expenses.

Set up auto-debit:

Another helpful trick to help you meet your monthly savings goal is setting up automatic monthly deposits into your savings account. This will ensure you save a fixed amount when your salary gets credited! Additionally, you should try to contribute any surplus from your monthly budget to your savings account if you can.

Once you know what to do & get into the rhythm of things, just making simple lifestyle changes can help grow your funds! Remember, building up your savings is essential to gaining financial independence and can help you prepare for a rainy day. Happy saving!