How to properly save money?

[BBQorMILDEW]

Hey, I am truly having troubles saving money. I am hoping that some people on here can give me some tips on how to do it properly.

Besides from the obvious gem.

Stop spending it!!

Any tips, stories or information would be greatly appreciated.

Thanks..

[Yasa]

If you can get a job out of town where you have to stay in a camp and work 2-3 weeks at a time then that can really help.

Otherwise, try creating a solid month-by-month budget. Use Excel, since it's perfect for it. Break down every expense you have, so start by grabbing your bank account and credit card statements and look at how much you're actually spending, and on what.

Start allocating money to what you need; rent, food, insurance, gas, any payments, etc. Stop (or slow down) on credit card usage. You'll start to get a picture of what you have left over to spend and save.

I don't know what your lifestyle is, but I can suggest; stop eating out (everyday for lunch at roughly $7/day can equal to $210/month if done for 30 days), go grocery shopping at places like Superstore and look for deals (Presidents Choice is not the end of the world, it's actually pretty good and cheap), COUPONS are great. Small things like this can add up over time into savings.

2 things I do are; put $x into an untouchable savings account every 15th and 30th of the month. Take spending money out in cash and ONLY use that. Don't use your debit or credit card if you don't have to. If you can see the money, you can see yourself spending it. Work more hours if you can, and don't be afraid to set goals. Something like "I want to save x-amount in y-months," make it achievable and have strong will power.

I've done all these things and it's helped me so far. I'm not a financial planner or anything like that, so just remember these are amateur tips from somebody who got tired of having no money. I'm sure there will be other folks on this board with much better and more detailed advice.

You could always win the lottery too (except not this week, it's mine.)

[Ben_in_Canada]

Don't get married!!!!!!

[Slava]

The thing that works best for most people is to open an account of some sort (RRSP, TFSA, or just a non-registered if it comes to that) and make the savings payment like a bill payment. You notice it for the first month or two and then it's just another thing that comes out of your account along with your other bills.

[I_H8_Crawford]

Build a budget - see where your money is going, that is always the first step.

Then after looking at your budget, look at where you can cut spending.

Build a savings aspect into your budget, and each payday, X amount goes into savings according to your budget.

[WilsonFourTwo]

The Soap Box - Finance Edition

You say that you have trouble saving money - I say you have a problem managing money. Get control of your finances, and the savings take care of themselves - Promise!!

Three Specific Tips

1. A goal of "I want to save money" pretty much guarantees failure. Goals need to be simple, clear and have timelines attached.

"I want to save $100 every month so that I have a $1200 annual RRSP contribution."

2. If you don't have a budget, get one. Keep it simple but thorough.....a "Budget" column and an "Expense" column. They're easy to make, can take less than 15 minutes a month to maintain, and will open your eyes to what you spend. Again.....keep it simple but thorough.

3. Live with cash. Its getting harder and harder to do this, but nothing says "Stop Spending" like $0.00 in your pocket. Early on, I even suggest leaving your plastic at home (incl. debit card). I take out a months worth each at a time (spending, groceries & gas). When its gone, its gone. But at the same time, if there's money left over, I'm welcome to spend it on "Hookers & Blow".

I've been following those tips (and more) for many years, and they have made an indescribable difference. Zero debt, plenty of savings, and I never ever ever ever worry about "can I make X payment this month?" type stuff.

[kevman]

Originally Posted by Slava

The thing that works best for most people is to open an account of some sort (RRSP, TFSA, or just a non-registered if it comes to that) and make the savings payment like a bill payment. You notice it for the first month or two and then it's just another thing that comes out of your account along with your other bills.

Automated savings for the win, especially if you can get your employer to set it up for you! Budgets take too much time and effort...

Depending on how much you earn, when (if?) you max out CPP and EI for the year is a good time to start. You won't even notice that money is gone! Well, at least until January...

[firebug]

Step 1: Know what you earn and spend -> go to www.mint.com/canada it's free and is compatible with nearly all canadian institutions.

Step 2: Have someplace to save money -> go to http://www.ingdirect.ca/en/ and open a free investment savings account (even their rates aren't 'high' but they pay 6 times higer than my bank does, plus no fees)

Step 3: Learn about money -> Books are fine, but this isn't the nineties anymore; go to -> http://www.iwillteachyoutoberich.com/ or http://www.getrichslowly.org/blog/ and see what they have to say. Two drastically different styles, but between them you will find many tips and strategies that will work for you.

[puckluck]

Step 1: Cut a hole in a box

Step 2: Add a certain amount of money to it a month

Step 3. ???

step 4. Profit

[MoneyGuy]

Originally Posted by Ben_in_Canada

Don't get married!!!!!!

Get married!! Two salaries and expenses that are not that much higher provide opportunities to build your savings. You'll have to wed someone who shares your goals and values to spend less and save for a wonderful future together. The kids will cost but it all go helps you build a great, well-rounded life. It's not all about money but about having enough to provide the life you want.

Then you both need to make good financial decisions. That's all the common-sense stuff you mention.

I know FIRST-HAND this stuff works. If you do it.

[WilsonFourTwo]

Originally Posted by firebug

Step 3: Learn about money -> Books are fine, but this isn't the nineties anymore; go to -> http://www.iwillteachyoutoberich.com/ or http://www.getrichslowly.org/blog/ and see what they have to say.

I visit those sites as well - EXCELLENT resources.

I also really like Money Sense's magazine/website. It tends to be a lot of fluff, but there's always at least one REALLY interesting article each month.

[loob job]

Pay yourself first.

[Kavvy]

Originally Posted by firebug

.

Step 2: Have someplace to save money -> go to http://www.ingdirect.ca/en/ and open a free investment savings account (even their rates aren't 'high' but they pay 6 times higer than my bank does, plus no fees)

.

6 times? What Bank are you with, last time I checked I think RBC High E-Savings was 1.25% (maybe 1%) and ING was 2%

[firebug]

Originally Posted by Kavy

6 times? What Bank are you with, last time I checked I think RBC High E-Savings was 1.25% (maybe 1%) and ING was 2%

RBC is smart to have that option - most of the other big 6 don't have that.

Check out the rates of all of the other RBC savings accounts and you will see what I mean.

[Ben_in_Canada]

Originally Posted by MoneyGuy

You'll have to wed someone who shares your goals and values to spend less and save for a wonderful future together

This is where I went wrong

[Jbo]

Don't go to Stampede.

[Prototype]

Originally Posted by Ben_in_Canada

Don't get married!!!!!!

Don't have kids. Sure you get $100 a month from the government for each ankle biter, but the cost easily $300 a month in diapers/food/repairs/entertainment/etc.

PS - I love my kids.

[troutman]

Sound advice:

http://snltranscripts.jt.org/05/05lbuy.phtml

CP: Did you know that millions of Americans live with debt they cannot control? That's why I developed this unique new program for managing your debt. It's called [presents book] "Don't Buy Stuff You Cannot Afford."

Wife: Let me see that... [grabs book, reads] "If you don't have any money, you should not buy anything." Hmm, sounds interesting

Husband: Sounds confusing.

Wife: I don't know honey, this makes a lot of sense. There's a whole section here on how to buy expensive things using money you save.

Husband: Give me that... [grabs book, looks at it] And where would you get this saved money?

CP: I tell you where and how in Chapter 3.

Wife: Ok, so what if I want something but I dont' have any money

CP: You don't buy it.

Husband: Well let's say I don't have enough money to buy something. Should I buy it anyways?

CP: No-o-o-o.

Husband: Now I'm really confused!

CP: It's a little confusing at first.

Wife: Well what if you have the money, can you buy something?

CP: Yes.

Wife: Now take the money away. Same story?

CP: Nope. You shouldn't buy stuff when you don't have the money.

[flamesaresmokin]

Keep your money out of chequing accounts. I always keep as little as possible in them as they are complete rip offs. Of course the banks are trying to combat this option by continuously raising minimum balances and fees for these accounts.

[MarchHare]

Aside from the other good advice so far in this thread (create a budget, pay yourself first, etc.), here's a huge one: don't buy a home in the suburbs where you need a car to get anywhere. Live somewhere within short walking/transit distance of your workplace and common errand locations like a grocery store, pharmacy, liquor store, restaurants, pubs, etc. and ditch your car. Most people spend $10,000 or more annually on their vehicles after all expenses have been taken into consideration (car payments, gas, parking, insurance, maintenance, etc.). Instead, invest half the amount you would spend on a vehicle and keep the other half to freely waste on hookers and blow.