How to Save Money in Canada? The Complete Breakdown

Saving money in Canada can be a challenge, but it’s not impossible. Luckily, we put together some strategies that actually work! So whether you are looking to save for a rainy day or you want to get ahead on your retirement savings, there is something here for everyone.

Let’s get started!

How to Save Money in Canada?

Saving money can be a difficult task for many people, especially if they live in a country with a high cost of living. However, we have several money saving tips that can help you.

Create a budget

One of the best ways to save money is to create a budget and stick to it. This will help you track your spending and ensure that you are not overspending on unnecessary items.

Cook lunch at home

Eating out can get expensive, even if you’re just grabbing a quick bite. If you cook lunch at home more often, you’ll be able to save money and have more control over what you’re eating. Plus, it’s usually healthier to cook your own food!

Make your coffee at home

If you’re buying coffee every day, this can quickly add up. Invest in a good coffee maker and some quality beans, and you’ll soon be saving money compared to those expensive Starbucks runs.

Lower your utility bills

One of our favourite money saving hacks is lowering your utility bills. This can be done by making some simple changes in your home, such as turning off lights when you leave a room and unplugging electronics when they’re not in use. You can also save on your heating and cooling costs by making sure your home is well insulated.

Pay insurance premiums upfront

Paying your insurance premiums upfront in one lump sum can save you a significant amount of money. This is because insurance companies typically offer discounts for policyholders who pay their premiums all at once.

Quit smoking

Smoking and drinking are two of the most expensive habits that you can have. Namely, the average pack of cigarettes cost in Canada is roughly $12.33 in 2022. If you’re wondering how to save money, quitting these two things should be at the top of your list. Not only will you save a ton of money on the actual cigarettes and alcohol, but you’ll also save money on things like insurance and healthcare costs.

Carpool or use the bus/your bike

Public transportation is not only great for the environment, but it can also save you a lot of money on gas and car maintenance. If your workplace is close enough, see if you can walk or bike to work instead.

Shop second-hand clothes

Second-hand clothes stores are great places to find designer labels and high-quality clothes at a fraction of the cost. You can often find slightly used or even new clothing items for a fraction of the price you would pay at a regular retail store.

Invest in a gas-friendly car

Purchasing a fuel-efficient car is among the more realistic ways to save money on gas. If you live in a city, consider getting a hybrid or electric car. These types of cars are not only better for the environment, but they will also help you save money on gas.

Purchase regular, low-octane fuel

You’ll still be able to drive just as well and the lower octane fuel is often cheaper. When it comes time to fill up, choose the gas station that offers the lowest price per litre.

Do your car maintenance yourself

Doing your car maintenance yourself is one of the more creative ways to save money. This includes oil changes, tire rotations, and even simple things like washing your car. Not only will you save money on labour costs, but you’ll also get to know your car better and be able to spot problems early on. 

Go to yard sales

One great way to save money is to go to yard sales. You can find some really great deals on things that you need or want. Just make sure that you don’t spend more than you budgeted for!

Get a cheaper gym membership

If you’re someone who loves going to the gym, there are ways to get a cheaper membership. Students and seniors often get discounts at gyms so be sure to ask about those. There are also many community centres that offer low-cost memberships.

Cancel unnecessary subscriptions

If you have a gym membership that you never use, or a subscription to a magazine that you never read, cancel it! There is no point in wasting money on something that you don’t even use. The same goes for any other kind of subscription or membership that you may have.

Learn how to sew

Want to learn how to save money and have fun at the same time? Start by looking for sewing classes at your local community centre or online. Once you know the basics, you can start making your own clothes and save yourself a lot of money in the process.

Plan vacations in winter

Take advantage of cheaper rates and winter attractions by planning your vacations during the colder months.

Download a budget tracking app

Tracking your spending is the first step to money saving. A budget tracking app can help you see where your money is going and where you can cut back.

Check out our list of the best expense tracker apps for 2022!

Browse resale apps

There are a number of apps and websites that allow you to buy and sell used items. This is a great way to save money on things like clothes, furniture, and electronics.

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How to Save on Groceries

Cutting down food and grocery expenses is probably the hardest money saving task. Read on to find out how to save money on groceries in Canada.

Use rewards credit cards

If you are strategic about it, using a rewards credit card can help you save money on groceries. Look for a card that offers points or cash back on groceries and make sure to pay off your balance in full each month to avoid interest charges.

Read More: Scotia Momentum Visa Infinite Card Review

Try couponing

Couponing can be a great way to save money on groceries, but it does take some time and effort to get the hang of it. However, couponing can help you slash your grocery bill significantly.

Buy in bulk

Buying in bulk is another one of the most helpful tips on how to save money, especially if you are able to find good deals on items that you use regularly. Just make sure that you have enough storage space and that you will actually use the items before they go bad.

Shop less often

If you can, try to cut down on the number of times you go to the grocery store. This will help you save money in a few ways. First, it will cut down on the amount of gas you use. Second, it will help you avoid impulse purchases. And third, it will give you more time to plan your meals so that you can make sure you are using ingredients that you already have on hand.

Avoid organic groceries

Organic groceries can be expensive, so if you are trying to figure out how to save more money in Canada, you may want to avoid them. However, keep in mind that organic foods are often healthier for you, so it is up to you to decide whether the extra cost is worth it.

Moreover, if you have the space, consider growing your own vegetables. This can be a great way to save money on groceries, and it is also a fun hobby.

Make your own meals

Whenever possible, try to make your own meals from scratch. This will help you save money on groceries, and it is often healthier than eating out or buying prepared meals.

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How to Save Money Fast on a Low Income?

Should you have a job that pays less, there are a few things you can do to save money fast. Here are some strategies that actually work:

Put housing first

When you have a limited income, it’s important to make sure that your housing costs are as low as possible. One way to do this is to live in a smaller space or share accommodation with others. You can also look for affordable housing options in your community.

Save your loose change

Whenever you have spare change, put it into a jar or piggy bank. You’d be surprised how quickly this can add up! You can use this money to pay for small expenses or treats.

Make an emergency fund

When it comes to efficient budgeting tips, setting up an emergency fund is a great way to make sure you have money set aside for unexpected expenses. Try to save up at least $500 so that you know you have a cushion in case something comes up.

Review your cell phone plans

If you’re paying for a cell phone plan that you don’t use, it’s time to switch to a more affordable option. There are many affordable cell phone plans available, so do some research to find one that works for you.

Cut down on entertainment expenses

Another way to save money for low income families is cutting down on entertainment expenses. Instead of going out to the movies or restaurants, try staying in and watching a movie at home. You can also get creative and find free or low-cost activities to do in your community.

Switch to a no-fee bank

If you’re paying monthly fees for your bank account, switch to a no-fee option. There are many banks and credit unions that offer free or low-cost accounts with no monthly fees.

You might be interested: Simplii Financial Review 

The $100 rule

Whenever you get a windfall of cash, such as a tax refund or bonus from work, put at least $100 into your savings account. This will help you build up your savings over time.

How to Save Money for a Car?

Saving for a car can be difficult, but it is possible. Here are a few tips that will get you on the highway in no time:

Decide on a car and make a plan

The first one on the list of tips for buying a new or used car is to decide on the type of car you want and figure out how much it will cost. Once you have a target price in mind, you can start saving. There are a few different ways to save for a car, so find one that best suits your needs.

Reduce interest payments

If you have a car loan, try to pay it off as quickly as possible to reduce the amount of interest you pay. You can also refinance your loan at a lower interest rate if rates have gone down since you originally took out the loan.

Tackle other financial goals such as debt first

It is critical to set money aside for other reasons, such as paying off debt or saving for retirement. You should first focus on these areas if you want to achieve other financial objectives, such as acquiring a vehicle. Once you’ve figured out how much you’ll need for your car fund, it’s time to start putting cash away.

Set a car price and down payment goal

To stay on track, it may help to set a goal for the total price of the car as well as how much you want to put down as a down payment for your car. This will give you a target to work towards and help keep you disciplined with your spending.

Go bigger on your savings

If you want to save even more money, consider increasing your savings goal. By doing this, you will have a larger down payment which can help reduce the amount of interest you pay on your loan.

Hunt for loans

When you’re ready to buy a car, be sure to shop around for the best loan rates and look for any rebates or other incentives that may be available.

Be patient

Budgeting for a car takes time and patience. If you are able to be patient and disciplined with your spending, you will be rewarded with a new car that is paid for in cash.

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Finishing Thoughts

Although saving money might seem impossible at times, There are a variety of methods and strategies that can help you increase your savings. Try out a few of these methods and see which ones work best for you. Remember, even small changes can make a big difference over time.

FAQ

What is the fastest way to save money for a car?

The fastest way to save money for a car is to set up a budget and make sure that you are sticking to it. Try to find ways to reduce your expenses so that you can put more money towards savings. You may also want to consider picking up a part-time job or finding other sources of income so that you can save even more money. 

How much should you save per month in Canada?

There is no one answer to this question as everyone’s financial situation is different. However, a good rule of thumb is to save at least 20% of your income each month. This will help you build up your savings quickly and reach your financial goals sooner.

Is it hard to save money in Canada?

Saving money in Canada can be a pretty difficult task depending on your financial situation and lifestyle. However, following our strategies will help you save some loonies in no time.

What is the 50-30-20 budget rule?

The 50-30-20 budget rule is a simple way to help you manage your money and save for your financial goals. The rule states that you should spend 50% of your income on essential expenses, 30% on non-essential expenses, and 20% on savings and debt repayment. This can be a helpful guideline to follow when figuring out how to save money in Canada.

ABOUT AUTHOR

Mila is an English literature student and a devoted animal's rights advocate. Despite her love for the written word, she's a keen observer of the everyday world and an excellent researcher with a bright and fresh perspective. When she's not doing research, you're most likely to find her out for a walk with her dog or binge-watching a TV show.

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