Ideas And Tips On How To Save And Get Through Financial Difficulties

By Marianne Malaca

We are facing an economic contraction all over Canada. Financial markets were unstable for the past few months and many layoffs have been announced from different companies, mostly from the Oil & Gas Sector. Many project are put on hold or cancelled. 

Given our current situation, here are six easy way to save money that will help create a sound budget for you and for your family.

1. Bring lunch to work all the time.  Ten dollar lunches per day add up to $200.00/month!

2. Instead of buying coffee/tea three or twice a day, make it only once a day.

3. List all your major expenses for the month. Like, house rent/mortgage, food/grocery, utility bills, credit card payment, kids school expenses, gas, insurance, car payment.

4. Avoid any extra shopping that is not on your daily/monthly necessities.  “Do not buy if you really don’t need it”. This is not a time for extras.

5. Be a wise spender! Use coupons and always look for discounted items whenever you shop.

6. A friendly reminder as well – do not forget to set aside money for your savings account. It is important to have emergency funds set-aside.  As the Ants life lesson says, “Work hard and save your money, so that when storms come and as the season changes, you will be able to survive”.

Let me share this interesting article written by a good friend of mine entitled "The Cost of Waiting" as published in his blog (http://ariellxavier.arevalo.ca/).

Juan saved up for a total of 10 years: Total savings of $24,000

Pedro saved up for a total of 38 years: 

Total savings of $91,200

At age 66 (assuming 8% rate of return):

Juan has an account balance of:  $699,374

Pedro has an account balance of: $571,058

Pedro saved more, but ended up with a smaller amount. Why? It is called the COST OF WAITING. In Tagalog, we have a saying "daig ng maaga ang masipag," which literally means "it is better to be early than to be hard-working."

In building up your retirement funds, it is especially true. Starting earlier means that you are doing less of the work in growing your money. If you start late, the harder you have to work to save up for your future. Start early and you will be rewarded.

I hope you enjoyed reading this post and that you learned something useful from it.  In this tough times, small things can add up and create a big impact on your finances.  Being wise with your money now can bring many benefits for you in the future.

Until next time, fellow champions!

About the author

Marianne Malaca
Independent Broker/Financial Adviser
Works with Greatway Financial and BMO Insurance
Volunteer Member of Possibilities in Motion Foundation (non-profit organization)
Contributor/Writer at TFCC blog site (The Filipino Champions of Canada)
You can reach me at (403) 708-0413 for any inquiries and help on financial matters.