Experts in Canada estimate that over 90% of Canadians have less than $5,000 in their savings account – What this means is that a very high number of Canadians find themselves in the unenviable position of living from paycheck to paycheck.
But how can an ordinary person with an average salary get so far ahead in their expenses, that new paychecks simply remain unused? There isn’t any one answer. Here are a few tips:
1. Sell Stuff You Don’t Use
This ranks as number one as everyone has a few stuffs they don’t really use and can be sold for at least a few bucks. I once had a roommate who was an avid gamer. His Xbox game collections and accessories combined for a whopping $5,330 of games and accessories laying around our scantily furnished two-bedroom basement suite. Fair enough video game and accessories may not qualify as stuffs one doesn’t use to many who own them but when trying to get your monthly expenses on track, irrelevant items like video games should be first on the chopping block.
2. Cancel Cancel Cancel
This is probably stating the obvious but the secret here lays on how merciless you can be in cutting down expenses. Subscriptions such as:
Television –Streaming subscriptions
These payments add a lot to your monthly expenses and when you free yourself of these financial obligations, a lot more will be left to spare.
3. Eat In
Ordering takeout gets expensive. A survey done by an independent company in 2014 on what used their credit cards mostly for showed that a whopping 43% of Canadian credit card holders ordered take out more than 3 times between March 2013 and April 2014. When cutting your budget, you have to eat home, cook your own meals, and research about budget-friendly recipes.
4. Minimize Gift Purchases
Buying gifts for loved ones on special occasion is a big money spender. Regardless though, if you are trying to cut down on expenses, your loved ones will understand why you cannot be a part of this year’s gift exchange.
5. Just Spend Less
In general, the trick is spending lesser than you have done in the past. If you had a thing for an expensive cologne, you may probably have to lower your taste. If you are in the habit of taking an uber or a cab to work or frequently to other places, you best should learn the bus routes to save more on all those trips. If your usual budget for gas weekly is $30, you should aim to reduce the amount of times you drive around the city so $20 per week can do for your gas budget.
6. Find Other Sources of Income
Its pointless to save if there isn’t much income flow. When looking to cut back on your expenses, its smart to look into part-time jobs that can get you a few more hundred bucks bi-weekly to aid your financial growth.
Finally, if you are looking to reduce your monthly expenses or you are in a high-interest car loan financing that exceeds what you like your monthly budget to be, contact the credit repair experts at Canada Auto via phone 1-855-550-5565 or visit www.canadauto.ca to speak to an agent who will understand your situation and recommend ways for you to improve your financial health.