Credit Tip Tuesday #35 - 10 Household Habits to Save Money

Saving money can be challenging, especially these days when most of our time is spent at home. Finding out what household and daily habits you can implement will help you save at any moment and for the long run. There are various strategies to save money and pay off debt, but the most efficient one is to change your destructive spending patterns so that you can save regularly in the future! But, we go over a variety of different saving tricks that will help you save now. 

We've put up a list of some of our favorite household tasks that can help you save money:

Finding online stores or companies that offer discounts is an amazing thing to add to your daily habits. By using digital software like Honey, a free browser extension that's a smart shopping assistant, automatically applies discounts to your cart – in seconds! For stores you are already shopping at and purchasing from, Honey will apply some of the best deals to your cart.

Further, using sites like Groupon is an easy way to get huge discounts while discovering fun activities in your city. Our daily local deals consist of restaurants, beauty, travel, ticket vouchers, shopping vouchers, hotels, and a whole lot more in hundreds of cities across the world.

Read more on the best money saving apps and websites in Canada here: https://www.ratehub.ca/blog/the-best-money-saving-apps-and-money-management-apps-in-canada/ 

You're doing your money a disservice if you're not employing at least a handful of these!

To save money, you can look into getting a Costco membership for yourself and your family, buying your necessities in bulk when they are on sale. This not only saves you time but can help you save a substantial amount in the long term. 

Another aspect of saving and spending money is to cut down on things you do not need. For example, if you spent $40 every two weeks getting your nails done, it may be wise to cut this down to once a month. This can help you reallocate money towards more important expenses such as food, rent, or your savings.

As previously mentioned, there are many tips and tricks to keep your spending under control and keep you out of debt. Similar to our blog "How to Save Without Changing your Lifestyle," a useful hack to your savings is to save the 10s. You can save the tens from your paycheck each time you get paid. This means that if you are paid $656 per pay period, you will deposit $56 into your savings account each pay period. Using this strategy in your life can help you save money without depleting your paycheck! 

Using the scenario above, if you are paid $856 every two weeks and save $56 every time you are paid, you will have accumulated $1,344 in a year!

Begin by separating your monthly expenditures into categories such as groceries, transportation, housing, and entertainment. Many providers categorize your payments, so your credit card statement can be a valuable tool to find out where you spend your money.

After that, seek places where you may save money. Then put the money you've freed up toward paying down your debt.

Everyone has different mindsets about money. From our spending habits to the way we save, it is important to think about your attitude towards personal finances before making changes to your habits. 

Key questions to ask yourself: 

• Do you currently have a budget?
• If you have a budget, ask yourself “is it working?”
• If you do not have a budget, ask yourself “why?”
• Is there anything in your life that is taking a substantial toll on your paycheque?
• What is your biggest financial goal? 
• Do you currently have a plan to achieve your goals? 

Once you reflect on your current financial situation, you can begin taking steps towards future goals. Personal reflection is extremely important, as it will help you see what you are doing well and what you can improve upon. It is also important to remind yourself that anything is possible if you plan and set concrete goals to achieve. Remember … Personal finance is 80% behaviour and 20% tactics!

     5. Track Your Money Using an App or Spreadsheet

Apps are extremely beneficial in all aspects of life, especially when dealing with activities that can be intimidating, such as budgeting. A budgeting tool could be exactly what you need to help you reign in your spending and regain control of your personal money. There are a plethora of budgeting applications to choose from, each seeking to stand out from the crowd. In a quick search of the Apple or Android app store, you're sure to be flooded with many useful apps, so be sure to check out all of them to decide what works best for you!

     6. Use your Tax refund

It's incredible how much a tiny boost in income may help you achieve your financial objectives. We recognize that money is tight during Covid-19, and that spending recklessly is enticing. While it may be tempting to spend your tax refund on new clothing, dining out, or that one expensive item you've been eyeing all year, utilizing it to help repair your credit will be more advantageous in the long run. There's nothing like knowing you spent your money on self-improvement or financial goals rather than material items to feel good about.

We recommend breaking up your tax refund to the best budget for life's unexpected expenses and put you on the path towards financial freedom! 

Another prevalent misunderstanding regarding budgeting is that you must eliminate all non-essential spending. This, however, is not a healthy attitude to have. As previously stated, reaching financial objectives is 80% mental, so being too tough with yourself can do more harm than good. Small modifications, on the other hand, can have a significant effect.

If you go out to eat once a week and always get the main dish, a drink, and dessert, for example, consider cutting back. Only order a main course the next time you order takeout. While this may appear to be a minor expense, they are frequently the ones that build up the most quickly.

Apart from rent or mortgage payments, grocery shopping is generally one of the more expensive aspects of our budget. You may easily save money on groceries by couponing, checking for in-store deals, joining up for store rewards programs, or purchasing less expensive versions of necessary products.

Buying non-perishable or freezer food in quantity is another option. While bulk items are slightly more expensive, they often last far longer than smaller serving sizes. In the long run, this will help you save more money.

Using a debit card is effectively the same as sending money from your bank account to the store you're buying from. Money is withdrawn from your account as soon as you swipe or tap your card. You won't get a charge every month or pay interest on any purchases if you use a debit card.

With credit cards, you'll be given a credit limit or credit line, which specifies how much you can spend before you're 'maxed out.' Your security deposit determines your credit limit with Plastk. Unlike debit cards, your purchases are collected over time and must be paid in full every month. Although you're only required to cover the minimum amount, failure to pay off your entire balance by the due date will result in paying interest on the balance on your account. This also affects your credit score.

Credit cards aid in the development of positive credit history! Your credit history is a record of your credit card relationship. This keeps track of your likelihood of repaying the money, your dependability, and your spending habits. It helps to boost your credit score if you pay off your balance each month.

Credit scores influence the loans and interest rates you pay, as well as your ability to make auto or housing payments. Many landlords and banks use credit scores to assess who is eligible to rent or buy a home. Credit scores are instruments that customers can utilize to enhance purchasing power.

Budgeting can be intimidating, especially if you've never done it before and aren't sure where to start. It is, nonetheless, an essential aspect of establishing and maintaining a good credit score and financial stability. A budget is a plan for spending money while keeping your expenses and income in balance. Here are five reasons why you should make a budget and stick to it:

1. It helps ensure you don’t spend money you don’t have.
2. It helps prioritize financial goals.
3. It helps shed light on spending habits.
4. It helps prepare you for emergencies.
5. It helps you save money and get out of debt

Overall, finding small ways to save in your daily routines and habits is an excellent way of accumulating savings. These budgeting techniques are so easily applicable that sometimes you won’t even notice a significant change! Please let us know on social media if any of these tips worked for you!

Disclaimer: The content provided on the Plastk Financial Inc. Blog is information to help Canadians become financially literate and learn about credit. Plastk is not responsible for building or ruining an individual's credit score or credit rating. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment, credit inquiries, and all other decisions should be made, as appropriate, only with guidance from a qualified professional.