Colleen Brown-Palmer, ContributorFACED WITH rising prices, increased expenses and reduced disposable income, the question is often asked, "How can I save money at this time?" You are growing tired of people telling you to save some money when you have no money left to save! But as previously discussed in NCB Wealth Creator series, saving for the future is a commitment that you should make regardless of your age, income level or status in life. It is just a good habit to cultivate which can lead to financial independence in the later years or just to take you out of a spot in the case of an emergency. Here are some tips on how to save a few dollars, here and there, that can add up to real money at a later date:
Decide on needed items and plan how much you can spend on them before going shopping. Go shopping with a list and buy only the items included. Without a list you may end up buying things that you don't need or did not budget for.
Clip coupons and use them. You can save sometimes up to 10 per cent off the purchase price. Make use of discounts that you are entitled to, such as those offered to certain credit union members or credit card holders. Doing this on a regular basis will add up.
Buy items on sale. Shop around for specials and carefully compare prices.
Return poor quality or defective items to sellers. Remember to check out the return policy or warranty offered at the store before making the purchase.
Keep a tally of all your expenditures; you will certainly spend less if you think hard and long on each dollar spent.
Save any extra money that you earn from second jobs, rebates, bonuses and medical insurance reimbursement.
Bring lunch to work. This might not be the most chic thing to do especially when everyone else in the office is buying lunch from the newly opened fast food outlet nearby, but taking lunch to work can amount to significant savings. Think of all the items in the refrigerator and pack a creative lunch kit. You could surprise yourself on both the taste and your savings! If you are currently spending an average of $200 per day for lunch you could save up to $48,000 per year by taking lunch to work.
Shop around for lower auto and home insurance rates. Sometimes there are great differentials between rates offered by one company versus another. Instead of blind loyalty, compare prices to ensure that you are getting the best deal.
Pay your credit card bills on time and avoid late charges and penalties that can add up over time.
Buy energy-saving devices and save on utility bills.
Instead of buying a new car every four years, be prepared to keep your car a little longer and after you have paid off for the car loan make an effort to put the amount that you paid for the loan in a savings account.
You can save hundreds of dollars per year in comparing prices at different gas stations and using the lower octane gas, subject to the manufacturer's recommendation. Get the most efficient usage of your fuel by keeping your engine tuned and tyres inflated to the proper pressure. And if you use air conditioning, keep the windows wound up once the hot air has been expelled from the car.
Arrange to have a small amount of your paycheque automatically deposited to your savings account on a monthly basis. If you don't see it you will not spend it.
You should honestly assess your behaviours to identify the reasons why you can't seem to get ahead. You may be an impulsive buyer or are getting into too much dept of lack the self-discipline in saving money. You can break these habits but remember it will take some time, effort and commitment. There is psychological research done indicating that it takes 21 days to break an old habit and form a new one. So don't expect miracles to happen overnight. Change one habit at a time and work on it until you succeed before moving to the next one. Good money management habits mean getting the most for your money as a matter of course. Look at your money habits today and begin the process of change.
Colleen Brown-Palmer is Senior Marketing Officer NCB Wealth Management Division
