Did you know: over half of Canadian millennials have less than $1,000 in savings?
Of course, you?ll want to be a part of the other half who are getting ahead financially.
But first, you?ll have to learn how to save money. Fortunately, the financial experts at LendingArch are here to help and together we?ve listed 5 proven ways to save money.
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Factor savings into your budget
Having a budget is essential for figuring out your monthly spending. Ideally, this should take into account your living expenses (like food and rent), but also necessities like clothes.
However, instead of calculating your balance after paying bills, why not turn saving money into a bill too? In other words, make it something that has to be paid every month just like any other bill does. Start at 10% of your paycheck and slowly increase it over time.
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Save money for a goal
Saving money for a particular goal is a sure-fire way to keep yourself motivated.
Taking the kids to Disneyland; buying a new car; making a down payment on a home. For these goals, and any others, you need a plan. Consider how much you must save and for how long.
It?s also important to consider your short and long-term goals. With a plan in place and a little motivation, you can save money and reach your goal with ease.
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Automate your savings
Once you?ve narrowed down your savings goals, it?s time for the hard part: actually saving money.
Automating your savings can help a lot as the money will be transferred before you get a chance to see it. Typically, your employer/HR department can help you split your paycheck accordingly.
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Save your change
Did you know there are apps that help you save your spare change? In fact, one app in particular – Mylo – will invest your change!
It?s simple: you sign up for Mylo, link your bank account, and any purchases you make will be rounded up to the nearest dollar. The change will be invested in ETFs (Exchange-Trade Funds) and saved without you having to do anything.
The only catch is that you?ll have to pay a $1 monthly subscription ? a small fee for an effortless endeavour.
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Take advantage of credit cards perks
Believe it or not, credit cards can actually help you save money – particularly if you use your card wisely and have the right type of card for your spending habits.
For example, as long as you pay your bill on time and in full, a cash back credit card can help build your savings. Look around and see what credit cards offer the best rewards for you.
Bottom line
While there are many ways to save money, these 5 proven money-saving hacks will help you start saving right away. Before long, not only will you understand how to save money, but you?ll be on your way to achieving your financial goals.
Wise Dollar
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