Families across Canada are feeling the hard impact of inflation, with the cost of groceries, fuel, and utilities all increasing this year. And while the rise of prices will likely continue, the worst part is that nobody knows how long it will last or how high prices could go, meaning Canadians have to cut their discretionary spending and look for ways to save money wherever they can.
To help you cut back, here are a few ways you can save during this period of inflation.
Save on everyday purchases
First and foremost, it’s important to create a budget to not only define your expenses, but track where your money is currently going. It’s easy to lose sight of your spending, which can make this a tricky process, but start by going through your bank and credit card statements from the past couple months and categorize your purchases into three categories:
Essentials: these are things like groceries, rent/mortgage payments, utilities, childcare, insurance, etc. Things that you truly can’t go without.
Nice to haves: these are things that make your life better every day, but if you really needed to cut back, you could put them on pause for a while. Things like streaming services, gym memberships, weekly date nights, saving contributions, or even recurring donations.
Luxuries: things like takeout or delivery meals, your daily coffee run, clothes shopping, concerts, sporting events, etc. Cutting these is often the hardest to do as they become habits, but are easy starting points if you need to cut back.
Put the essentials into your budget first, then your nice-to-haves. Add up those expenses and compare it to your monthly income to paint a clear picture of where your money goes each month, and how much money you really have left for the luxuries.
Save on fuel
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