6 Tips for saving money

I know this year has been hectic and money can be tight. There are infinite ways to make money but the hard part is saving it, so I put this list together to hopefully relieve some of your stress and possibly motivate you.

SAVE SAVE SAVE.

The pandemic has taught us how important saving is: it has been a serious wake-up call for those living pay cheque to pay cheque.

Let’s get to it!

1. GIC

Investing is a way to make money but a guaranteed investment will actually save you money. If you are a spender this one is for you. When you put your money into the account you can’t touch it for the term or you will get penalized. Terms are a minimum one year so if you like to spend your extra money on things you don’t need like another pair of heels try putting a minimum $1000 in a GIC for the year, that way you won’t have the money to spend on those shoes you don’t really need. You will also have 2%-3% more money in the end.

I thrive off GICS mainly because I think I have less therefore it motivates me to work harder. Whenever I have money in investments I completely forget about it.

Example: If you make 500,000 once and put it in a GIC at 3% for the next 5 years you’re getting 15k a year ($1250/month) that will pay for your rent/mortgage for 5 years and in the end, you will still have 500k. If you were to dip into your savings of 500k you will have 485k which doesn’t sound too bad but that’s 15k you could have invested elsewhere to make more.

2. Cash

I would say this works with 85% of people. Keeping cash can actually help you save up. Most use cards everywhere and when you use tap you only see a number and to me that doesn’t mean as much compared to having it in hand.

Keep a small safe in your house (make sure to hide it well) and whenever you receive cash put it in there and forget about it.

Note: It’s always good to have cash just in case something ever happens to your bank account.

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3. Amazon Shopping

When shopping on amazon most buy products off the first page because that’s how it works right? You do that because the seller has established reviews so they are trustworthy.

BUT

You can find the exact same product for cheaper by going on to the next few pages or sorting low to high! (Look For Prime) There are so many sellers on amazon competing to get first-page meaning they have to make more sales to boost their sales rank. They will cut their profit margins down in hopes that more people will buy. Josef and I have products on amazon that we profit $0-$2. Yeah, it’s a lot of work for breaking even but we are getting our sales rank up so when we hit the front page we can raise our prices to compete.

As well you can look at buying options which sometimes comes up by the add to cart button: We call it a buy box. It’s a huge deal for sellers but this is what you should know. There can be multiple sellers selling the exact same thing but only one seller will get the automatic add to cart button when you see the listing. If you look at buying options there can be other sellers selling it (brand new exact same item) for less, or selling used for less. That reason being you can’t make another listing if its already listed as a generic no-brand product.

4. Open a third saving account

Set up an automatic transfer so ‘blank’ amount is sent from your checking to third savings account every month then swear to yourself that you won’t touch it.

5. Set A GOAL

You have already heard make a budget, prioritize, etc. That’s true but you should also be number-driven to an extent. Don’t give up your youth trying to get rich there’s no point. But do place a number goal to help you stray away from spending stupid money.

Stupid money: Buying a sweet car to show others that you made it in life. I won’t be able to change other’s minds on this but I’ve seen people define themselves by the car they drive. If you want a nice car use it to market yourself or company like if you’re selling a course having a nice car will help drive sales. If it’s not going to leverage you, use your money elsewhere.

Back to number goals, I find it’s helpful to have a goal to reach a certain point. Start at $1000 move to $5000 then $7500 all of a sudden you saved $10k go up in increments of 5. That way your less likely to overspend since you have something to look forwards to.

6. pASSIVE INCOME

If you have some sort of passive income you are doing good. If you don’t it’s not too late to start.
If you’re making $1000 profit on rental properties every month thats 1k you have without working your job. You had to trade your time initially in order to afford the down payments but now it’s paying off.

So how does this relate to saving?

If you have a stock that pays let’s say $100 a month that covers your phone bill cost so now you don’t have to work the extra few hours in order to pay that bill. You can add the pay from those hours directly to your savings.

So essentially you can spend your passive income (if you need to) and everything else you save.

Those are my top 6 tips to saving, let me know if any of these worked!

About The Author

Randina