RazzWorks

We all know we should have a savings account with a nest egg for emergencies. However, many people, especially those living paycheck to paycheck, just can’t find the extra funds to put away. There are only two ways to come up with ‘extra’ money for saving: make more money or spend less. It’s not always easy to do either of these things but I’ll try to help with some tips.

Spend Less Money

It seems simple enough but spending less can be tricky if you are already frugal. However, there are a few things you might not have thought about. Let me make a few suggestions.

First, before you even attempt to find areas to cut back in there are a couple of things you should do. If at all possible eliminate your debt. The interest you are paying on it is money out the window. Of course, if you have a large mortgage that will take some time but you can negotiate for a better interest rate with your lender.

Also, you need to know what you are really spending all your money on. You should keep a spending journal for one month and then review it to find out where your money is going.

I have used a small notebook, or you might choose to use your phone, and make a note of all money you spend and what it’s for. Bought a coffee or lunch at work? Write it down. Went through the car wash or threw a few dollars in a donation jar? Write it down. Mark what you spend on groceries, bills, eating out, clothing, and, don’t forget, gas for your car or cab/bus fares.

After about 4 weeks of tracking, you should see more clearly where your money goes. It’s incredible how a $2 coffee and $10 lunch adds up over a month. You could easily save $100 per month by making your own coffee and packing a lunch.

Some other things you could do to spend less money are:

• Cut out luxuries as much as possible. This doesn’t mean you can’t have anything nice but do look for the best deals and consider what value this item will add to your life.
• Shop around for better deals on things you need. So your lawnmower broke and you need a new one. Do your research, do comparison shopping and read the reviews on various lawnmowers. Do you really need a ride-on mower? You’d get more exercise with a push mower. Make an informed decision and you’ll save money and get a better product.
• Look for lower-cost internet and cell service providers or downgrade your service to a cheaper package. You should also think about not upgrading your cellphone every two years just because you can. I’ve been using my current phone for about 6 years and it still works like a charm.
• Delay large purchases. When you need to buy something, that’s not a regular purchase such as food, the worst thing you can do is go out to your favorite store and buy the first one you see. Try telling yourself that you need at least one week to check for sales, research the item, and look up reviews. You will make a wiser purchase, and get the best product for the best price. It may not always be the lowest price but you want to get the best value for your money.
• This suggestion won’t work for everyone but if you can, work from home. You can save a lot on transportation, eating out, clothing, and even childcare.

In general, you need to change your mindset to one of saving money. Always be on the lookout for better prices on everything you need. Whether it’s food, clothing, or a new car you want to get the best possible deal. Give the highest priority to your ‘needs’ and think carefully before spending on ‘wants’. Eventually, it will be second nature to spend less money than you used to.

Make More Money

If you are not currently working then getting a job seems like the obvious place to start. If you are working you could talk to your boss about a raise or working some extra hours. Below are some other ideas to help you make more money.

• Find a new job with better pay, better benefits, and/or the option to work overtime. A benefits package with health insurance for your family can make a new job at the same wage much better for you in the long run.
• Get a second part-time job. It can be temporary so you can build up your nest egg or you may choose to keep it so you have the money you need for things like vacations and luxury items as time goes on.
• Create a home business doing something you’re good at. It could be a hobby like gardening or something you are educated for like accounting. You could start it part-time while keeping your day job. Then when the business starts bringing in enough money you can give up your day job to run your business full-time.
• Sell items you are no longer using at a yard sale or online. You’ll have the added bonus of getting rid of clutter around your home.
• Turn your hobby into money. If you make any kind of art or crafts you can sell them online or at local craft fairs and shops. Other small business owners might be willing to carry your items in their stores. Look for someone with a shop that fits the theme or style of your work for best luck.

There are lots of jobs you could do in your spare time that could provide you with some extra money to help build up your savings. See if any of these sound interesting to you:

• Pet sitting
• Babysitting
• Mystery shopper
• Freelance writer
• Delivery driver (think groceries and take-out food)
• Yardwork
• Tutor
• Cleaning
• Data Entry
• Website designer

Many more jobs are out there you just need to do some searching. Check in your local newspapers as well as online in a local Facebook group or Marketplace.

I’m sure there are many more ways to make or save money. These ideas should at least get you started. Once you start saving money you will want to put it in an account where you can’t quickly access it for impulse purchases. What kind of account you choose will have a lot to do with what you are saving for. Talk to a financial expert for more assistance in this area.

What if you are trying to save up for a specific purchase or a vacation? You might not need to go to great lengths to accomplish this and maybe you don’t even want to use a bank account. Lots of people keep a jar to throw their pocket change into at the end of the day. This can accumulate quickly.

I have personally used a can with a cover to save cash for special purchases that fall into the ‘wants’ category. I committed myself to put $10 in the can every week as well as all my loose change. Also, any money that I had left when my bi-weekly paycheck came in went into the can. I didn’t count the money every time or keep a log. Instead, I gave myself three months to see how much I could save. I ended up with about $600 which was more than enough for what I wanted.

So, whether you are trying to save for retirement or just save for a weekend away there are many things you can do to help make and save money for the purpose. There are also different methods of saving such as (but not limited to) RRSP, RESP, investments, bank account, a home safe, or a jar in the cupboard. Whatever you’re saving for I hope you found some useful information here.

Do you have other ideas for making or saving money? Leave a message in the comments. We’d love to hear from you.

Roze