Inflation is putting a damper on our ways of life and many of us are struggling with necessities like food, fuel and housing. Don’t stress because there is hope and it is all about tightening our budgets and rethinking our finances so you can keep up with the crazy cost of living.
Check out 10 ways that can help deal with the rising cost of living:
1. Reconsider your commute
The current sky-rocketing gas prices have people frantic about fuel efficiency and their commute. Gas stations tend to have fuel reward programs, and some are even connected to our optimum cards, which is a bonus. Consider being committed to a reward program so you can earn free gas. If that seems like a challenge, Toronto and the GTA can be efficient for public transportation so rethinking your work commute could be a possible option for saving a buck. Other ways you can save on your commute can be carpooling with another or taking a couple of days of the week to work from home.
2. Switch your mobile/internet provider
Our handy phones and the internet have become more than essential to our daily routines. Mobile/internet providers are aware of this and that is why they always end up throwing sneaky fees into our bills, extra data charges and play with the speed usage.
Eliminate the frustration by comparing providers to find a better deal. Review factors like coverage, discounts and extra perks (like free streaming for 6 months or data months for a year).
If you are not one who is attached to their phone like the rest of us, investigate switching to a prepaid plan instead. That way you are paying for only what you use. Another way to save is by looking for bundles with providers that have discounted rates on phone and internet service together.
In today’s day, many providers do not force you to lock into annual contracts, so it is easier than ever to switch to another provider if you are not happy with the one you are currently with. Take advantage!
3. Switch up your bank account
Now more than ever is a great time to find valuable ways to fuel your savings. Most people are hesitant to switch bank accounts because they think that it is too difficult and complicated. Truthfully, it can be very simple to switch bank accounts and save. Start researching different types of high interest savings accounts to find the best deal and interest rates. Once you find one that is right for you, put in an application and start saving!
4. Minimize your energy usage
Something that one said stuck as a philosophy for budgeting during winter months and that’s “heat the human, not the home”. Try investing in an electric blanket or some warm sweaters to keep you warm instead of heating the whole room with an energy-sucking heater.
During the summer months, find ways to efficiently circulate air throughout the home to keep it fresh and insulated from the heat. Once you can tackle energy during the seasons, look at the bigger picture to find ways to save on your energy bill. Use timers or unplug unnecessary gadgets that are continuously running while you’re not using them like the microwave, TV, etc.
As a long-term outlook, consider shopping energy providers and do research on energy plans. Even consider investing in insulating your home better. Yes, this may cost you thousands of dollars at that moment, but it will save you much more than what you spend in the future – not to mention the environment!
5. Buy groceries online, or shop locally
It is virtually inevitable that when we go to the grocery store, we end up buying more than what we originally intended. This is something called the Gruen Effect. Funny enough, supermarkets have been designed to infiltrate our brains, encouraging us to spend more and more.
Learning to go against the grain and stick to our handy grocery list is the best way to stop this cycle and one way to do that is by ordering your groceries online. This is a great way to track what is in your basket and how much you are spending while you shop. Another incentive about shopping online is the management of the amount of food you are buying, that way you are decreasing your food wastage as well.
Try even signing up for meal kit delivery services which can eliminate the time spent deciding what to buy and make for dinner. Food prices are one of the fastest rising costs when it comes to meats, dairy, produce and starch foods like pasta. Consider buying locally and shopping in season or switch to cheaper brands and find substitutions for ingredients in your recipes.
6. Make a budget
Making a budget often feels foreign and something ‘scary’ to encounter with personal finances. Keep in mind that budgeting is not a way of stopping your spending, instead it is more helpful in improving your spending. Therefore, do not be scared to set a budget for yourself.
For those who are paid with a salary or fixed income, a budget can give you a great idea of how much you are spending and what you have left over. We like to think of it as a game. The objective of the game is to have more money in your pocket so find ways to balance your lifestyle and needs by saving where it is unnecessary.
7. Sell stuff you have no use for
Purging the household for items you do not use is a helpful way to pocket some extra cash. Websites like Kijiji, eBay, and Facebook Marketplace are great platforms for getting rid of those items you no longer have use for. This is always an amazing way to save the environment also because you are recycling items with others who may need them. You may not hit the jackpot with selling old items, but it is some extra cash that can be set aside for a rainy day. We always need a rainy-day fund.
8. See if you are eligible for benefits and vouchers
The Canadian government is panicking about the economy, just as much as we are. We tend to think that the government are the villains, adding fuel to the inflation fire, but on the other hand they can also be our hero – believe it or not.
There are a variety of programs available through the government of Canada that you may be eligible for. Different provinces offer different incentives for living costs such as childcare and housing. Speak to one of our Canadian Debt Advisors to get some more information on what programs may be eligible to you.
9. Track spending with a money saving app
The app store is full of some smart and easy budgeting tools that can help you keep track of your spending habits. Most of these apps can connect directly to your bank account where they will automatically allocate your spending into categories and show you where you are spending the most. Once you have a clearer understanding of your expenses, you can budget better. There are tools like budget calculators and setting up goals that can help you get to where you want to be with saving and spending.
10. Opt for free activities and events in the city
After a long week of work, we want to unplug and saving our money earned is not the first thought. Instead of planning big dinners or racking up long bar bills, try looking for free activities or discounted evenings of fun. Most cities are packed with free museums, gardens, and galleries. Restaurants also pick discounted days out of the week to offer specials on their menus. If you do a little research, you would be surprised how cheap fun can be!
Bonus Tip: If you are a homeowner, consider refinancing your home
Interest rates have increased drastically this year and for borrowers with variable loans it means they could potentially be paying hundreds of more dollars in interest. Yes, refinancing may sound a little intimidating, but it is better than sinking into a mortgage you can no longer afford.
Shop around with lenders to find the best rate and incentives to refinance. Even consider taking out a home equity loan to help reduce some of your debts that have been a burden. This is something that Canadian Debt Advisors can help with. Believe us, there is a light at the end of the tunnel.
We hope these tips for saving during high rising costs were helpful! Contact us today if you have other questions about reducing your debt and saving more!
Best Regards,
Canadian Debt Advisors
