This strategy requires you to make minimum payments on all of your debts while directing the remainder of your funds towards the loan with the highest interest rate. List all of your debts in descending order from highest interest rate first on down. One strategy to pay off debt quickly is the stacking method. Instead, hit the gym or join a book club to stay busy and engaged. Forget roaming through malls and bookstores, where impulse buys are common. To control spending, it helps to eliminate temptation. So save first for the goals that you have and then spend what’s left over. This way, it’s not a question of finding the willpower to save every month. Set up an automatic transfer of funds to a savings account, tax-free savings account ( TFSA) or registered retirement savings plan ( RRSP) so that a set amount-say, 10% of your gross monthly income that comes off your paycheque automatically. That’s because you don’t pay taxes on the capital gains on your principal residence and there’s no tax on the return you get for getting out of debt. Kill two birds with one stoneįor those with low to moderate incomes, paying off debt-including a mortgage-is the best tax planning you can do. Once you know how much you’re spending monthly, you can decide what areas you can reduce or where you’d like to cut back on so you can meet your savings goal. Some banks offer spending apps through your online banking, but third-party apps like Mint and You Need a Budget (YNAB) are also popular. Tracking your spending-either through a daily journal or an app-can help you do this. The best way to get on track to saving is to spend less than you earn.
Whether it’s a trip to Japan you hope to take in a few months or saving up for retirement, having a very specific goal will help you stay motivated and on track.
If you’re serious about saving, you need to set a goal so you know what you’re saving for. Whether you’re juggling credit card balances or trying to boost your savings, here are some strategies to help you get there faster. And who doesn’t want to find a way to save more? Countless studies show Canadians are not saving enough towards retirement, and many current retirees report wishing they had socked away more along the way.
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