With the cost of everything from rent to groceries to gasoline on the rise, the idea of saving money can seem like a pipe dream to many. But you can save money fast by employing the right strategies. If you need some motivation to save, I’ve come up with several reasons why you should make it a priority. And to help, I’ve compiled a list of 16 ways to save money fast.
The Benefits of Saving Money
Saving money can benefit your life in many ways, but it’s not easy if you don’t have a purpose or reason to save. Here are some of the main reasons you may want to start saving and how it can positively impact your life.
- Saving money helps you prepare for emergencies or unexpected events. Life is full of surprises, and sometimes those surprises can come with a price tag. By building an emergency fund, you give yourself a financial cushion to fall back on should any unforeseen costs arise.
- Saving money helps you achieve your financial goals. Whether it’s buying a new home, starting a business, or going on a dream vacation, having money set aside can make these goals a reality. By automating your savings, you’ll be able to reach your financial milestones faster and with less stress.
- Saving money can help you reduce debt. With an emergency fund as a solid savings foundation, you can more easily pay off loans, credit card balances, or other forms of debt. Being debt-free is not only great for your credit score, but it can also reduce stress.
- Saving money helps you build wealth. With extra cash flow, you can grow your wealth by investing in stocks, bonds, or real estate. This long-term approach to managing your finances can allow you to secure an even more stable future.
- Saving money brings peace of mind. Knowing that you have funds to cover unexpected expenses or to achieve your goals helps alleviate financial anxiety and allows you to enjoy life more fully.
As you can see, the benefits of saving money are obvious. But what if you need to save money fast? Is it realistic? The answer is yes, and to help, I’ve come up with the following list of ways you can start saving money today.
16 Ways to Save Money Fast
1. Create a Budget
To save money fast, you need to start with a plan. I recommend that you create a 50/30/20 budget because it’s simple and easy to implement. All you need to do is allocate 50% of your income for necessities, 30% for wants, and 20% for savings and debt payments.
Keep in mind that you can adjust the percentages to suit your immediate goals better. For example, if saving money fast is your top priority, you could allocate 20% to wants and boost savings and debt repayment to 30%. You get the idea.
2. Cut Recurring Expenses
Recurring expenses, like memberships and streaming subscriptions, can be deceiving. Each item may not feel like a major expense, but when added together, they can hamper your ability to save money and get ahead financially.
Add up all of your streaming subscriptions, and ask yourself which ones you can do without. Be honest with yourself about whether you truly need that Disney+ subscription. Canceling or reducing your monthly commitments will free up more money for savings.
3. Start a Side Hustle
You can only cut expenses so much. At some point, you need to increase your income to reach your savings goals. The good news is that there’s no limit to how much money you can make, and side hustles are an effective way to earn extra money.
The fastest way to make money with a side hustle is by selling your old stuff on Facebook Marketplace or Kijiji. Other profitable side hustles include gig economy jobs like driving for Uber, Skip the Dishes, or DoorDash, or renting out your ride with Turo. Or you can sell your services by becoming a freelance writer, graphic designer, or virtual assistant. The possibilities are endless.
4. Ask for a Raise
If you’re not interested in a side hustle or second job, have you considered making more money at your current job? One of the fastest ways to do that is by asking for a raise. It will cost more money for your boss to hire and train your replacement. If you’re a good employee, they may be more than willing to consider your request. An increase in your income can positively impact your ability to save money fast.
5. Eat Out Less Often
No one wants to be told that they need to cut something fun out of their lives. And I’m not telling you that you should never go out to eat. However, you’d be amazed at how much money you’ll save by reducing the number of restaurant meals in a month. You may not even realize how much you spend on dining out or takeout meals. If you’re serious about your savings goals, watch how much you spend in this area.
6. Switch to a High-Interest Savings Account
If you’re currently savings money in your chequing account, consider opening a high-yield savings account for saving money. Not only does it give you a separate place to grow your money, but high-interest savings accounts pay more interest than a regular bank account, allowing you to save more quickly. You’ll find the best interest rates from online banks like EQ Bank and Tangerine, which offers attractive bonus interest to new account holders.
7. Avoid Impulse Buying
Impulse shopping is a trap that can make it impossible to save money. If this is a struggle for you, there are things you can do to resist the urge to impulse shop. Create a personal rule to wait for 24 or 48 hours before proceeding with a purchase. This gives you a built-in cooling-off period, where you can make a more rational decision about the purchase.
If you’re really struggling, avoid going to the mall or to stores where you’ll be tempted to spend money. If it’s online shopping, make a decision not to log on to Amazon unless you have a specific purchase you need to make.
8. Drive Less
Reduce your transportation costs by driving less, carpooling, or using public transit. Consider downsizing to one vehicle if your household has multiple cars. This will help you save money on gas, insurance, and vehicle maintenance. It’s a difficult choice because driving to school and work, etc., is so convenient. But it’s also one of the biggest monthly expenses Canadians face.
9. Automate Your Savings
Saving money is a lot easier when it’s automated. To develop a good habit, set up automatic transfers from your checking account to your savings account when you get paid. This helps you put money away consistently and grow your savings faster.
10. Meal Planning
This one takes some organization, but it will help you save money and time. Plan your meals in advance and create a shopping list to avoid overspending on groceries. Look for coupon codes and participate in local community programs for additional savings.
11. Switch Your Cellphone Plan
Canadian cell phone plans are among the most expensive on earth, but there may be ways to save money by switching to a lower-cost plan. Review your cellphone plan to see if there is a way to save money. Even a few dollars a month can add up.
12. Cut Your Cable
Are you still paying for cable? If you’re not using most of your channels, consider cutting or reducing your cable in favour of more affordable streaming options. This can lead to big savings on your monthly bills, provided you don’t overspend on multiple streaming channels, as that will defeat the purpose.
13. Pay Off Your Credit Cards
If you’re carrying credit card debt, prioritize paying it off in full. The amount of interest you’re paying on your credit card balance is much higher than what you’ll earn in any savings account.
14. Take Cheaper Vacations
Thousands of Canadians escape the cold winters each year by heading to a warm destination for a week or more. And while a vacation is a wonderful way to unwind, the costs add up quickly, especially if you take multiple trips each year. If you need to save money fast, try to plan more budget-friendly vacations or even a staycation to save money while still enjoying time off.
15. Refinance Your Mortgage
With mortgage rates higher than they’ve been in decades, it’s probably not the best time to consider refinancing your mortgage to save money. But if you can maintain a low rate on your current mortgage balance while refinancing high-interest monthly debt payments like loans or credit cards, it might be worth doing. Speak to a mortgage broker or financial advisor to see if it makes sense.
16. Track Your Spending
Last but certainly not least, monitor your spending habits by regularly reviewing your bank statements and your budget. This can help you identify areas for improvement and make adjustments to save money faster.
Final Thoughts on Saving Money Fast
In your journey to save money fast, remember that small changes can make a big difference. By making a budget and reviewing your expenses, you can improve your cash flow and allocate extra money toward your savings goals.
Consider using money-saving apps, and pay attention to how much you’re spending on things like transportation and grocery shopping to help increase your savings rapidly. And remember to automate your savings to make the process easier and more consistent.
Finally, don’t forget to stay motivated and focused on your goal. Saving money fast is possible with determination, discipline, and effective strategies. Continue making smart choices, and you’ll be well on your way to achieving your savings goals.
FAQs
What are some tips for saving money on a low income?
First, it’s essential to create a budget to track your income and expenses. Look for areas where you can cut costs and find more affordable alternatives. For example, consider cooking meals at home instead of eating out or using public transportation instead of a car. Also, look for discounts and rewards programs to save on your purchases.
How can I quickly save for a house?
To save for the down payment on a house, you’ll need to be intentional with your saving strategies. Set a clear goal and timeline, and then prioritize saving by automating contributions to a separate savings account. Cut down on non-essential expenses, and consider earning additional income through side gigs or freelance work.
How can students save money quickly?
Students can save money by budgeting and being mindful of their spending habits. Applying for scholarships, grants, and financial aid can help reduce education costs. Students can also take advantage of student discounts, buy used textbooks, and consider cheaper housing options, such as living with roommates. Eating at home instead of going out, and using campus resources, like the gym or library, can help you further cut down on expenses and reach your savings goal.
What is the 30-day rule for saving money?
The 30-day rule is a simple method for controlling impulse spending. When you want to make a non-essential purchase, wait for 30 days before making the decision. During this time, think about whether the item is truly necessary or if you can find a more cost-effective alternative. If, after 30 days, you still think the purchase is worthwhile, go ahead and buy it. This waiting period helps you avoid impulse buys and focus on long-term saving goals.
