Here are 10 ways to reduce your expenses and save thousands!!
1) Try buying used on Kijiji or at Thrift shops. Nearly new is usually 50% or less of retail. Alternatively, you can order most items online for much cheaper than retail.
This not only reduces your costs, but allows you to buy items that you wouldn’t ordinarily buy, since you now have more disposable income.
If your item isn’t available, check back in a couple of days; thrift shops get new delivery daily.
2) Don’t waste resources: cash-in empty pop cans, close windows when the furnace is running, buy groceries at discount stores (Costco, RCSS, RCWC, Buy-Low, etc), shop at dollar stores,
Pop cans and pocket change can generate an extra $50 per month or more. Not a huge amount, but if you put this towards your cushion account, it makes building a safety net just a little bit easier. (See point #5)
3) DON’T Rent furniture or TV’s
The cost of renting furniture & electronics is about double what it would cost to buy the same item at retail price. If you buy used, or online, you’ll pay a fraction of what these places charge. Try pawn shops, Kijiji, Amazon.ca, Value Village, Thrift shops, etc.
4) DON’T use Cash Loan outlets, their interest rate is on the razors edge of Usery (loan sharks)
OY! How these places are legal is beyond my understanding of what’s reasonable. They prey on cash strapped consumers and charge heavily for the privilege of their services.
5) Live within your means and build a cushion account with surplus cash. Even if it is only $25 per week. It will add up quick!! Try using a Tangerine account with this “Orange Key”
This account is a cushion account to be used only in extreme conditions. Or better yet have sub-accounts for: car repairs, vacation, etc.
6) If your finances are tight, DON’T buy a house!! Random expenses can cripple your budget. Think about if you need a new roof, water tank, windows, or need to service the furnace. Even regular service costs for these items can be a haedship. As a tenant, you simply call your landlord to service the items in the house.
Your housing costs should not exceed 30% of your income, this includes: insurance ($100), utilities ($300), taxes ($100-$200), mortgage/rent payments ($1,000-$3,000), maintenance ($250), etc. If these amount total more than 30% of your income, you could very well be headed for financial trouble!
7) Be sure to maximize your deductions on your income tax. Keep all receipts and have a system for tracking. Use a bookkeeper, not income tax services (H&R Block), to file your taxes.
H&R Block basically buys your return and gives you a percent.
8) Avoid monthly subscription services. This is a great business model for the provider, and bad for the consumer. In most cases, after one year of service, you could have bought the product outright! Exceptions are market disruptors like Netflix.
9) Use less stuff! By using a small amout less of: shampoo, soap, toothpaste, butter, jam, etc., you can usually get several more uses out of that prosuct.
10) Reduce your cable package. Usually when you call your cable and/or cell phone provider, they’ll offer you a better rate. If they don’t, call their competitor and tell them you are thinkkng of changing providers, see what they offer you. Then call your supplier back and tell them what their competitor offeres you.