4 Genius Tips for Saving Money

Fall is just around the corner, and along with warm sweaters and hot chocolate, this time of the year brings lots of holidays and family gatherings. These last few months of the year are when many people report feeling particularly strapped for cash – so why not plan ahead and avoid some of that unnecessary stress?

We recommend three genius tips for saving money that should help you put aside some extra cash for the holidays.

Use the Want vs Need System

When you’re wandering through the store on your way to the check-out, ask yourself before making any purchases whether you need the item(s) you’re about to buy. This simple question can help you reflect on the purchase(s) you’re about to make.

While it can be tempting to always answer “yes” to that question, a moment of reflection can help you realize the importance of your purchase. This method can help you to consciously identify what you need and prevent you from making unnecessary purchases.

Create a Budgeting Calendar

It’s simpler than it sounds! Last month I created my very first budgeting calendar which outlines my total expenses for each month. Headers at the top of my Excel spreadsheet divide my expenses into categories, such as food, clothing, rent, unexpected costs, and university fees. Categories help keep track of how much I’m spending and where my expenses are coming from.

I would recommend opening up your credit card history and adding all of the costs from the last year to your new spreadsheet. This will give you some context for how much you’re currently spending and what areas you can improve – before setting a stricter budget on spending for each month.

Example of a simple budgeting calendar

Month	Food	Clothing	Rent + Utilities	Total
Jan	$86	$77	$500	$663
Feb	$81	$34	$500	$615
March	$96	$103	$500	$699

Use the 3-Category Budgeting System

If you’re worried that creating a budgeting calendar won’t help you change your spending habits, identify three areas of spending that you would like to get under control. These could be your food bills, gas expenses, or money spent dining out. Review your old receipts from the last 3-6 months for these expenses to give yourself an idea of how much you’re currently spending. Then, determine a dollar amount that you would like to reduce each of these expenses by. Keep track of your results going forward, and soon you’ll be left with some extra money in your pocket.

Shop Around

If you know you’re going to have to buy a new laptop for your daughter before she heads off to school in the fall, plan ahead and shop around to find the best option at the best price.

The same can be said if you have to buy a dress for a friend’s wedding in a few months or a new car next year.

 

We hope these budgeting tips have given you some insight into how to better manage your money so that this year’s holiday season can run much more smoothly. While it might be too early to start thinking about Christmas shopping, it’s never too early to take control of your finances and start saving!