Create a Monthly Budget.
It’s easy to lose track of your spending but seeing all your spending on paper will set you up for future money saving success. Visit your personal online banking account and download all of your previous monthly expenses from your chequing account. Then, calculate your monthly fixed costs vs. your variable costs in an excel format. Determine if there is room for improvement on both your fixed and variable costs. Are you getting the best auto insurance rates? Are your water, utilities, heating or cell phone bills higher than you would like it to be? Shop around for the best rates and ask your existing providers if they can offer you a better rate. Also, see if there are ways you can cut back on your variable costs. Are you spending too much on coffee, clothes or daily lunches? Another great money saving tip is to bring your lunch and homemade morning coffee to work every day and then you have room in your monthly budget to enjoy a meal out with friends, family or your spouse.
Pay Yourself First
Now that you have completed your monthly budget, you know how much money you have left over each month. Author, David Chilton of the book The Wealthy Barber, recommends paying yourself 10% of your net or take-home income. To ensure you are on track, you can set up automatic monthly or bi-weekly withdrawals from your main chequing account to transfer to your savings or another separate account. Therefore, you will not miss the money if you don’t see it but it’s important to keep track of your chequing account balance to avoid overdraft fees.
Research the Best High Interest Savings Accounts on the Market
Banks have promotional offers for high interest savings accounts for new clients and this is a great way to take advantage of higher than average saving account rates that you are not currently offered with your existing bank. Shop around using online financial product comparison sites.
Save Money on Your Mortgage
Money saving experts such as Gale Vaz-Oxlade recommends increasing your mortgage payment by $100 per month. For example, increasing your mortgage payment by $100 per month on a $120,000 mortgage will save you over $82,000 in interest payments over a 30 year period at an average interest rate of 9%.
For more information and to review your financing needs, Contact Geoff Del Grande.