It’s that time of year.
Christmas has come and gone and you are looking back at a bank account hit hard by holiday spending.
It’s time to start saving and you don’t know where to begin.
According to one financial expert, when it comes to saving money, willpower and knowing the reason behind why you’re saving are two driving factors people need to know in order to save money going into the new year.
Lindsey Plumb, Founder and Chief Financial Coach of Moola Financial says cutting costs for many comes down to shifting mindsets.
“It’s not an overnight thing. Learning how to say no is really hard.”
When it comes to taking the first steps in saving, Plumb says the following 7 tips will help get people back on track as we head into the new year:
Cut unnecessary subscriptions
Plumb says people often believe they need certain subscriptions when in reality those services often go unused.
“They come to believe they want, need and deserve Crave and Hulu and Apple TV. Do you really need all of those things? You likely watch less TV,” Plumb tells Victoria Buzz.
Plumb also recommends people should invest in subscriptions that offer multiple services such as Prime that feature streaming and music.
Shop less and plan more
When it comes to grocery shopping, Plumb recommends families and singles come prepared with a list of items they need rather than what they want.
“It’s okay if you run out of something. You don’t have to stop in at the store on the way home for one thing and spend $50.”
Building your meals around what is available rather than what you want is an approach that is difficult for many though Plumb says it can be healthily sustained with enough effort and focus on deals.
Plumb sets a $50 per person rule for her clients that tend to splurge on groceries.
Only buy produce if the price starts at $1.99 or less
“If it’s over $1.99 a pound it’s not worth going in your basket,” says Plumb.
When it comes to cutting costs on the grocery bill, Plumb highly recommends leftovers as a way for her family to spread out their goods between weekly grocery runs.
Make your own coffee
With the average price of coffee at $4.22 per cup in Canada, Plumb advises coffee lovers to buy their own beans and make their own cup of joe before a hectic day at work.
“My grandfather would roll over in his grave if he found out Igot up for work, got in my car and then sat in a drive-through and wait for someone else to make my coffee because I was so lazy,” says Plumb.
Curb convenience food
When it comes to Skip the Dishes, Plumb says, “get off your a** and make your own meals.”
If you’re really looking to cut costs, the first step is to reduce overpriced food deliveries or Mcdonald’s runs that give you a fraction of the food compared to the cost. convenience food.
Putting away for a future you
“Future you is inevitable, whether it’s your car breaking down, your house needing a repair, your kids going to summer camp or your girlfriend’s birthday all those are inevitable so they have to be planned for.
For those working towards a more sustainable lifestyle Plumb advises her clients to follow the saving model where household expenses are 50%, spending is 30% and our saving is 20%.
Plumb adds that if this breakdown of saving and spending is not feasible for your current lifestyle then the next option is picking up additional work to sustain a saving model like this.
For those looking for more helpful money advice Plumb and several other financial experts offer free advice when it comes to investing and budgeting through Black is the New Red, a financial support group on Facebook.
If you have money saving hacks that have helped you over the years, let us know in the comments.