We’re talking about ways to save money in Canada using Acorns and Digit, checking accounts as the best way to save money long term and not storing your card details as a great money saving tip in Canada.
Saving money isn’t as fun when you would rather spend it on things you want. However, similar to taking in your daily vitamins for a healthy life, saving contributes to a healthy future.
If you manage to keep $200 every month for 40 years in a retirement account that grows at 7%, you’ll enjoy more than half a million dollars. Fortunately, there are many ways to help you save money, from modern techniques to old-fashioned methods.
Here are six ways to save money on a tight budget:
1. How to save money on a daily basis (Rounding it Up)
If your favourite coffee costs $3.65 and you pay $4, you can save 35 cents. That doesn’t sound much, but in a year, you can to save $125!
Applications such as Acorns will round up how much you’ll spend based on habit and saves the change without you knowing it. With that and a few cents saved on your new coffee, you will see an increase in your savings.
2 - Saving Behind Your Back
Similar to Acorns, Digit is an app that auto-saves an amount based on your spending habits which are transferred into a savings account.
Don’t worry about it transferring too much, because there are algorithms in place to make sure it doesn’t happen. Digit offers unlimited transfers with no fees or minimums. It also updates you when hitting specific milestones, such as saving $50.
3 - Create Your Own Rules
There are applications available that will save an amount of money for specific goals every time you spend on your guilty pleasures. These saving goals can be anything, from purchasing a new guitar to buying a ticket to visit the UK. You can even have shared saving goals where a group of friends and family can help save for the cruise trip.
4. Best way to save money long term (Save Smart)
Interest rates on savings accounts are low. However, with a little bit of work, you can enjoy a much higher interest rate.
Have you ever heard of checking accounts? There is no minimum deposit here, only maximum! However, you’ll need to use your debit card at least ten times a month to qualify for a checking account. With that, you can enjoy an interest rate of about 1.75%, which is almost ten times more than a savings account. Some checking accounts can even double or triple that figure!
5. Money Saving tips in Canada (Don't Store)
Online stores and applications offer a “storage” for your card information for easy purchase—get rid of it. The idea of having to get out of your chair to grab your wallet may stop you from spending.
Deleting your card info will not only save you money but make you feel more secure at the same time.
6 - Double Down
Every dollar has a purpose, and a great way to boost your savings is to save your extra income.
If you have finished paying off your car, you should keep the extra money in your hands.
If you are given a raise, inform the payroll department to have the extra money sent to your savings account or a retirement plan.
The essential factor in saving money is discipline. Even if you have the world’s best money-saving application, your hard work will be ruined if you cannot control yourself from buying unnecessary things. Remember, you need to be disciplined for the strategies to help you.
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