Are you ready to start a money makeover and start seeing some positive cashflow in 2020? As a stay at home mama to two little ones I know that finacial stability can be difficult, especially for those who are living off of one income. Learning some of these money saving tips will help you get on the road to financial freedom, and who doesn’t want that?!
When my husband and I were first married we received a fair amount of cash for wedding gifts. I thought it was great! We were going off on our honey moon and extra cash was going to be great to have on hand. I was, however, the only one thinking that! My husband right off the bat said that the cash was going towards debts and bills….what a way to ruin the moment! My heart sank, but, I knew that he was right (though I did not admit that to him for some time!). We used the money to pay some debt that I had from student loans as well as some of the wedding expenses that we had. It didn’t stretch that far as I had a hefty student loan, but it was a start.
Well, enonugh about that, the point of this post is to help you begin a new and improved chapter in your financial life and get on track to making some positive cashflow in 2020. Maybe this seems daunting, maybe you are in massive debt and you can’t see the light at the end of the tunnel, or maybe you are living on one income and can’t make it stretch very far. Whatever the case, I am going to share some money saving tips that will help you get on a new path to financial stability in 2020.
Determine Income and Expenses
First things first. You need to know exactly what income is coming in and what your monthly expenses are. Without knowing these figures it will be hard to balance the books. Need some help creating a budget? Dave Ramsey provides a great free budget template that will help you get on track. Make sure you are including all your expenses as well as your debt payments.
Reduce Monthly Expenses
After you have created your montly budget and written down ALL your monthly expenses, you need to determine what areas you can save money in. I have compiled a list of ways you can reduce your monthly expenses and keep more of that hard earned money to get ahead.
1. Cancel your TV subscription
I know what you are likely thinking…I mean, we all love to snuggle up on the couch and watch tv in the evenings after a hard day at work. The reality is, however, that tv subscriptions are not an essential expense. The average Canadian spends approximately $52/month on tv subscriptions according to the 2019 Communications Monitoring Report. That is over $600 a year on television alone!
What to do? Cancel the subscription and rent tv seasons or movies from your local library.
2. Make a Grocery Budget
Grocery shopping doesn’t need to drain the bank account. You can eat healthily without spending a fortune. Make a budget and shop once a week. This means planning meals ahead of time so you know what you need and including things like snacks.
Tip: Don’t do your grocery shopping when you are hungry! Eat a snack before hitting the grocery store. This will help limit that impulse buying.
3. Change Your Cell Phone Plan
Notice I said “change” and not cancel? I think we live in a time where it’s not overly practical to live without a cell phone. Most of us have cell phones rather than landlines these days. That being said, we don’t need all the extra data and other special plan features. Save money by switching to a provider that provides the best rate. Do some research and cut the add-ons to get a cheaper monthly rate.
4. Stop Eating Out!
Eating out adds up over time. Maybe you think a meal here and there or a coffee once in awhile isnt much, but you would be surprised how quickly it ads up. According to Stats Canada, the average household of four spends over $2200 a year eating out. That is $2200 additional dollars you could have in your bank account or pay some debt with. Ditch the restaurants and prepare your meals at home. This includes packing a lunch to work and bringing a coffee rather than visiting the local coffee shop.
5. Ditch the New Car Payment (Sell Your Car)
You have heard this before I am sure. In fact, most money guru’s out there will tell you that your car payment is sucking you dry! According to the latest data from the Power Information Network (PIN), the average monthly payment in Canada on a new car is $570 a month. To put that into perspective, that is $6,840 a year!
So how do you get away from those outrageous car payments? Sell your car! Purchase a used car with cash and say goodbye to those payments and hello to some much welcomed cash!
6. Pay Cash, not Credit
Studies show that people actually spend 12-18% more when using credit cards than when they pay with cash. The average person holds a credit card debt of approximately $4,154. Start using cash to pay for purchases and budget for those purchases at the beginning of each month.
7. Get Real about Debt
This is going to be the biggest means of saving money. Getting serious about paying off debt will pay off in the end, believe me. As Dave Ramsey would say, list your debts smallest to largest and start paying off the smallest one first. Why? Because paying off your smallest debts will get you motivated when you see that balance go down to zero.
When you have paid off your smallest loan then tackle your next smallest loan with everything you have and get it down to zero. If you have free’d up some money from the first six suggestions then you should have a decent amount to put into paying off that debt. Remember, you need to continue paying atleast the minimum payment on all your loans to keep you from defaulting but tackle the smallest ones with all you’ve got!
Related post on getting out of debt
How to Become Debt Free
8. Cancel Your Gym Membership
Do you have a gym membership? Are you regularly using the membership or has it become a long distance relationship sort of thing? Gym memberships can be a huge waste of money if it’s not being used regularly. I get it, we all want to be fit and lose our mummy tummy, but paying a monthly membership fee only guarantees the lightening of our wallet, not our waist.
What to do instead? Cancel the membership and get creative. Start a workout routine from home, rent workout dvd’s from your library or start walking more. The point is that you don’t have to have a gym membership to get into shape. There are lots of other ways that don’t cost a dime.
9. Lower Interest Rates
If you are a current credit card holder or have a bank loan then talk to your provider and ask them what the lowest possible interest rate available is. Perhaps you are paying more in interest simply because you haven’t asked. A phone call could potentially save you a fair bit of money each month.
If you have several loans or debts then ask about the benefits of consolidating that loan with the lowest possible interest rate.
10. Turn a Hobby into Income
Do you have some hidden talents that could be making you some money on the side? If you have hobbies that could potentially earn you money then start now! Maybe you are good at playing piano and could teach piano lessons or perhaps you are great at sewing and could sell kids clothing or quilts. There are so many great ways to make money right from the comfort of your own home. Determine your gifts and use them to your financial benefit!
I hope these tips have helped with your money saving goals! Drop a comment and let me know what other money saving tips you have.
Happy Saving!