Back in our 20’s the thought of a shopping spree meant a new wardrobe for yourself, a crazy weekend or night out with friends or, going to the new hot restaurant in the city. Once you buy your first home or condo, or start your family, priorities change. It’s about furniture shopping, baby clothes and activities for the kids.
Here are some of Barry Choi’s favorite money hacks, to help you get the most out of your spending.
- Disposable Cash: We all have items in our closet that we bought and have never warn. Take these items to a consignment store or sell them online, but be sure the cash goes right in your savings account.
- Set it and forget it: Saving is tough, but make it easy and set up authorized withdrawals into a savings account- it can be as little as $20 a paycheque. You won’t even notice and you get to sit back and watch the money pile up.
- Every dollar counts: In your 20’s the last thing you think about is coupons or reward points, but as we age our love for saving on routine purchases like groceries changes. If you don’t leverage personalized offers and rewards points, you’re leaving money on the table. When you use your PC Financial World Elite Master Card in Loblaw banner Stores, like Loblaw or Shoppers Drug Mart, you earn 3x the points on every $1 spent. Let me tell you, those points add up fast.
- Cut the costs: There are things we pay for monthly or annually that are really unnecessary. For example, the unnecessary cost was (Sirius Radio – only an example). Think about ways you can cut your costs and put that money in your savings account, depending on the expense you could be saving thousands of dollars a year.
- Gift Cards: Purchasing gift cards with your credit card is a really smart trick. Think about it, if you earn loyalty points when you make purchases with your credit card, you are throwing away money if you pay in cash.
- Make a budget, but track your spending first
- Don’t overspend on big things (mortgage, car) and it won’t matter if you buy coffee every day
- Take advantage of employer benefits (massages, RRSP matching, stock options)
- Avoid fees (ATM, chequing accounts)