Savings & Budget Advice

We hear time and time again that "I just don't have the money to save."  Sometimes the smallest change can really impact your ability to save.  In today's society, we have all been taught that we need everything now.  If we cannot be instantly gratified, we are not happy.

In 2008 the Canadian Government made changes to Mortgage Insurance that means Canadians will no longer have access to “No down payment” mortgages, or “100% financing.” Some banks may offer incentives that have a similar look to 100% financing, however, for most of us, we will now need to contribute more savings, in order to buy a home.

That means we need to save, and develop a habit of putting extra money aside, each month.  It doesn't matter what age you are, changes can be made to positively impact your lives, and help save.

Step 1 is to take the time to see where you spend your money each month, and you will more than likely be surprised.

Use a spreadsheet and make a list, and do this over a few months.  Then, sit down with your partner if you have one, add them up and discuss your spending. You may be very surprised to see where all your money is going.

Step 2 is to work out where you can cut back or be more efficient. Some examples are eating at home more often, taking lunch to work, getting a better deal on your cell phone etc. Take a look at your credit card bills and any unnecessary interest you may be paying.

Step 3 is to start putting away 10% of your income each month, or an amount you feel comfortable with. Set up a separate bank account where you can deposit this money and earn interest on it. The more you can save now, the easier it will be to buy even more later on in life.

Now if you ask yourself honestly, is there something that I can give up that I don't absolutely need, most everyone will be able to say yes.  It does take adjustments in lifestyle, but if you start with small ones, you should find that you are excited to see your savings grow and this will allow you to do even more of the things that you want to do later.

Most importantly, by saving up now, you will be in a far better situation to buy a home sooner, rather than later.


   

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