Summer Saving Tips With Ali Halees
Summer is right around the corner and the patio season is upon us. With that comes more activities and fun but also more expenses for most people. This usually means less money to put towards your savings, however, that does not need to be the case. Here are some savings tips to help you save while also having fun this summer.
The first thing I would do to make sure you continue saving this summer is to automate them. You can set up automatic transfers from your chequing account to your savings account or investment account that happens on the same day that you get paid. This will be as an “out of sight, out of mind” situation and you will not be tempted to spend the money as soon as it hits your account. If you need to set up a savings or investment account at a different financial institution to help reduce temptations of using the money, then do that. If you are going to use an investment account, I would suggest a Tax Free Savings Account (TFSA) which allows for flexibility with a variety of investment options, and the money is TAX FREE when you need to use it.
The second thing I would do to make sure you continue saving this summer is to pay down your high interest debt. With increasing interest rates, we’ve seen many people put less money towards their savings and continue paying the minimum payment on their debt, which has increased. This prolongs the debt repayment schedule, and you are also paying more in interest over the life of the debt. If you have an extra $50, $100, or $500 per month (the amount doesn’t matter), use it as an extra payment towards your debt. Paying down your debt allows you to guarantee a return on your money by saving on interest in the long term. This will also help improve your credit score and help with getting approved for things like a mortgage. This is very important, especially for single adults, divorcees, widows and widowers, as you have less wiggle room with a single income for the household. Also, debt follows you to your grave so if anything were to happen to you, your estate (spouse, children, siblings, parents, etc.) will be responsible for paying the debts that you accumulated.
The last thing I would do to make sure you continue saving this summer is to purchase all your necessities in bulk when on sale. This might sound counterintuitive as you’ll be spending more in the short term, however if you know you use something regularly, when those items are on sale, buying in bulk will allow you to save in the long term, as you’re purchasing those items at a discount rather than at regular price every time you need the product. This can save you hundreds, if not thousands throughout the year and you don’t have to worry about purchasing those items as often. Also, with inflation levels still higher than normal, you can guarantee that those items will be increasing over the next couple years whether we like it or not.
*This is provided for informational purposes only. If you have any questions specifically on your taxes or investments, please consult the necessary professional*
