Different ways to save

Pay off debt with higher interest rates first

Interest charges can add up quickly, so paying down high-interest debt — such as credit cards or department store credit — is one of the best financial moves you can make. You may be able to reduce your interest costs significantly by consolidating outstanding debt with a loan or line of credit.

Make it easy every month and set up pre-authorized payments. This will be helpful not only for your large monthly payments but for all of your other smaller expenses as well such as hydro, cable or credit card bills. Understanding that these all don’t have to be paid off at the beginning of the month, you can time each payment throughout the month according to your bill cycles.

Save automatically and pay yourself first

Many of us think that we need to pay off debt before we can start saving. You can do both. While it’s important to pay off debt in the short term, there are ways that you can make small contributions to your savings that can soon add up - set aside at least 10% of each paycheque to go towards your savings.

This will allow you to build up a rainy day fund fit for any situation, or help save for your next big vacation. Pre-authorized transactions will allow you to save without having to think about it. You just set the day and the amount and every month your funds will be automatically transferred to your savings account. Also, be sure to take advantage of high interest savings accounts to get a little extra from your savings.

Be mindful – and use a spreadsheet

Pay close attention to your spending impulses and urges. Break poor spending habits by identifying those areas of overspending or overindulgence. Remove temptation from your path by leaving your wallet or credit card at home.

Using a simple excel spreadsheet can help you keep track of your spending and budget. Just be sure to commit to updating your spreadsheet as this will help you identify where you might be able to decrease spending and increase your savings.

Like any new undertaking, the hardest part of saving is figuring out where to start. Decide what you are saving for and then start by making the right small changes to your daily routines.