# Your all-time favorite method for saving money?



## budgetsense.ca (May 28, 2011)

What is your best, all-time favorite ways to save money? it could be as weird or as crazy as it sounds, but it may work for you.

Mine is a simple one and millions do it: payroll deduction! Nothing beats the simplicity and convenience.



Please share yours, you never know who will benefit from it.


----------



## hypo (Aug 11, 2010)

I check everything on Amazon before I'm about to buy to read the product reviews and see if its offered cheaper online


----------



## slacker (Mar 8, 2010)

I use "pay yourself first", but I automate it.

My paycheque is bi-weekly, and goes into my chequeing account. I setup an automated transfer from my chequeing to my Ally HISA on the same day.

If my chequeing account balance drops below $1000 (when my bank starts to charge me fees), I know I have overspent for that month, and adjust accordingly.

PS: One thing to improve on is to have a way to know quickly when I'm about to overspend. Right now, I don't find out until a month later. I also don't want to track every penny. I budget by broad categories.


----------



## LBCfan (Jan 13, 2011)

I prefer to "double" my money. When I want to spend it, I fold it in half and put it back in my pocket.


----------



## Dmoney (Apr 28, 2011)

One way I've found of controlling spending is to give things a time value. For example a fancy dinner takes X hours of work to earn. 

If you look at things as a % of a paycheque they may seem insignificant, but if you reduce the period (1 week, 1 day, 1 hour) the price of things seems higher. By looking at how many hours of work are required to buy something, I get a feel of whether it's worth it or not. Often it is, more often it's now.


----------



## andrewf (Mar 1, 2010)

Dmoney said:


> One way I've found of controlling spending is to give things a time value. For example a fancy dinner takes X hours of work to earn.


I use the same trick to judge how much I actually want something. I also use after-tax disposable income per hour, not gross salary.


----------



## Echo (Apr 1, 2011)

I make a forecast of income and expenses for the entire year. This way I can allocate my monthly savings goals in advance while keeping track of the months where those sneaky one-off expenses catch you off-guard. I find it works much better than a traditional monthly budget which is basically just tracking your spending after it happens.

http://www.boomerandecho.com/forecasting-income-and-expenses/

My other savings strategy is make a meal plan for a couple of weeks in advance and then match that to your grocery list. This can have a big impact on your monthly budget since you can avoid all of those impulse fast-food trips when you forget to take something out for dinner or you're missing a key ingredient.

http://www.boomerandecho.com/tips-to-save-money-meal-planning/


----------



## Sampson (Apr 3, 2009)

Dmoney said:


> One way I've found of controlling spending is to give things a time value. For example a fancy dinner takes X hours of work to earn.


Funny. I do the same thing to justify my purchases.

My wife and I both find saving quite natural/easy so we use a method like Echo's.

We make an annual budget, and earmark ALL surplus as savings. I like thinking about and managing my investments too so its not like I perceived that money as going into a bank vault and not-accessible.

For those one-off expenses, we have this weird ability to tighten the purse strings during some months so we have settled on an average variable expense category that is quite representative over the entire year.


----------



## KaeJS (Sep 28, 2010)

Discipline.

Occasionally I will think about the whole "Do I really want to work 4 hours to buy this?" strategy.

However, I have automatic payroll deductions and then I also limit my Visa to $450/month. This $450 includes gas, entertainment/food and anything else I wish to buy. This will keep my monthly spending at a minimum.

If my statement period ends on the 27th, and its the 24th and my Visa is only sitting at a cool $300, then I have $150 to spend in the next 3 days, if I would like.

On the contrary, if its the 13th and my statement ends on the 27th, and my Visa balance is showing $420, I only have $30 to get me through the next two weeks, which means all I'm doing is purchasing gasoline to get to work and back and eating mr. noodles from the cupboards 

This method works great because you always hit your target (unless an unexpected expense comes up) and in fact, you will most likely exceed your targets by only hitting $410, $415, $420/ month, scared of going over. You may actually save a few more extra bucks! 

You cannot "roll over" extra money. If you spend only $420 one month, you do not have $480 the next.

But of course, it takes discipline.


----------



## fraser (May 15, 2010)

-no inpulse buying. we will walk away and make a final decision a few days later. It is surprising how many of those must haves seem to drop off the radar after a few days.

-never, ever carry a balance on our credit cards

-with the exception of a car, never, ever borrow money for a depreciable asset like furniture or a consumable such as a vacation

-never take the extended warranty. always ask for a discount 

-increase mortgage payments and reduce amortization period.

-buy term insurance only and only when there is an actual risk-stay away from whole life.


----------



## Jungle (Feb 17, 2010)

We use a cash flow sheet that tells us exactly what to do with our money every pay day. What ever is left over, is used to pay the credit cards that we pay off monthly but charge all expenses to it, (for cash back reward)

We track ever dollar on a spread sheet, so we can look back and see what we are spending too much money on. 

Also, any extra money, not normally expected, (ie hst relief cheque, extra income) is used to pay debt or invest. 

Sometimes I will write a forcast to pay off or save for a certain money goal. We must follow it. If something comes up, I look for extra income to cover. Such as, selling items on kijiji, liquidating gift cards through private sale, or earning extra income. Even cutting on grocerys works, for example, eating more pasta meals to save money, instread of meat. $20-30 can be saved. 

Today I am selling a gift card to help pay for gifts. Then I might cut some lawns for extra money on my days off. I only work 14 days a month now, so this might be a good thing. (give me something to do  )


----------



## marina628 (Dec 14, 2010)

I got all my family on Skype so we no longer have any long distance phone bills .


----------



## marina628 (Dec 14, 2010)

Jungle I need my lawn cut


----------



## Jungle (Feb 17, 2010)

Anything is possible..if the price is right.


----------



## barnett.betty (May 31, 2011)

Budgeted spending; Impulse buying is a big no. Tell your family or yourself to spend only on what is needed than what is wanted.


----------



## marina628 (Dec 14, 2010)

My husband tried cutting it last week with a gas lawn mower and after 2 hours and empty tank he was not half done so he went looking for a tractor lol.We have 3/4 acre all grass.


----------



## kcowan (Jul 1, 2010)

fraser said:


> -no inpulse buying. we will walk away and make a final decision a few days later. It is surprising how many of those must haves seem to drop off the radar after a few days.
> 
> -never, ever carry a balance on our credit cards
> 
> ...


+1 
- when something new comes in, something old must leave to keep a handle on our stuff.
- for depreciable assets, always look for good used rather than new, only buy new when there are unique benefits for doing so.
- minimize number of credit card accounts, put an extra card for partner on existing card.
- maintain annual budget and look for annual savings initiatives for every major class of expense, e.g. cell phones, LD, internet, drugs...


----------



## Financial Cents (Jul 22, 2010)

1) Pay ourselves first.

2) Never carry credit card debt.

3) Always negotiate, on everything.


----------



## Spidey (May 11, 2009)

A method I've used is simply take my monthly bank statement and plot the total deposits on a chart in green. I plot the total withdrawals (minus any withdrawals towards investment accounts) in red. 

The object is to keep the green line above the red line.


----------



## Montrealer (Sep 13, 2010)

1) ASP (Automatic Savings Plan) and payroll deductions into a high interest account
2) No credit card debt (after I pay off my remaining balance)
3) Sleep on any purchase over $100.00
4) Brown bag my lunch and only eat out when I have to or there is no other choice
5) Repeat steps 1 to 4 monthly 

Example: If I have a goal to save up $10,000.00 a year, I basically divide $10,000.00 by 52 (since I am paid weekly) and send that amount to a HISA (High Interest Savings Account) automatically.

$192.00 from every pay check!


----------



## HaroldCrump (Jun 10, 2009)

Similar to Dmoney and andrewf, I tend to measure the "cost" of a purchase in hours of work required, however, I consider the gross income instead of net income.
So for an item that costs $100 sticker-price, it is really $113 after taxes.
If income tax rate is 30%, you need to earn $147 to buy this thing.

All of a sudden not such a great deal.


----------



## the-royal-mail (Dec 11, 2009)

So true Harold. Then add in the interest for people who buy the $100 thing on credit and are paying for it for the next 3+ years. The item can easily be double or 3x its original sticker price. By the time it's paid, the item is in the e-waste pile.

Another thing I consider is the cost of lost real estate. Lots of things gobble up garage space and prevent people from storing more worthwhile items that are used more often. For example, drive the residential streets of any big city and you will see garages filled with boxes, sofas and other junk while their beautiful $30K car is parked on the street!

But people don't think of the cost because they have the garage anyway and the stuff "isn't costing anything" by just sitting there. Wrong!


----------



## Jungle (Feb 17, 2010)

Forgot to mention that I do not carry cash..like ever. But only for the reason so I can't spend it. I am less likey to use my credit card for buying coffee, lunch or other things that add up.


----------



## Montrealer (Sep 13, 2010)

Jungle said:


> Forgot to mention that I do not carry cash..like ever. But only for the reason so I can't spend it. I am less likey to use my credit card for buying coffee, lunch or other things that add up.


It should be the other way around, you should have cash on you because spending cash is harder than swiping plastic. I have friends that put everything on there credit cards and pay it off at the end of the month, in my opinion it's the worst thing you can do because 1) It's not earned/owned money yet 2) It gives you freedom because you don't have cold hard cash in hand that your spending. 

Try a monthly budget of cash to spend, it works!


----------



## the-royal-mail (Dec 11, 2009)

I agree with Montrealer (even though the quote was not necessary, please see my thread on this topic). Cash is far safer than plastic. I've hung out with friends who didn't have any cash in their pocket and I ended up paying for everything because various places had failed debit machines on Saturday night that weren't expected to be fixed until Monday etc. Many places don't even take plastic for sub-$5 purchases. Then we have to give up our parking spot and start hunting for an ATM and pay their fees etc. Always carry a minimum amount of cash in your pocket to pay for smaller things more quickly and for safety in case you end up needing money when electronic means are not available.


----------



## trillian (Feb 3, 2011)

I put everything on my credit card. I also pay the balance at the end of the month. However, I never buy anything unless I have the cash in the bank to do so. Using my credit card helps me track my expenses because I can download the statements from the bank and import it into MS Money. I also have a 1% cash back, so I get a little bit of money back at the end of the year. 

I've never had debt in my entire life. I've never had a balance on my credit card except once, when I accidentally paid the wrong vendor. Boy was I shocked when I saw I had to pay interest, and when I paid the bill, the following month, I still had to pay more interest charges for the remaining time between bill printed and actual payment! Confusing!!!  I called up Visa all pissed off, but the guy was very gracious trying to explain to me how interest charges work (still don't understand it), and laughed because he could see I've never had a balance on my card ever and removed the remaining interest charges.


----------



## bootsnixon (May 10, 2011)

Buying Used is probably my favorite money saving method. With the internet and kijiji, craigslist and the like it is very easy. With so many purchases, the first place I look is Kijiji. I remember pre-internet with classifieds, buy and sell and bargain finder it could be quite the time commitment (does anyone else remember waking up early on Thursdays to get the fresh release of the Bargain Finder?). 
Some people don't like using other people's furniture or appliances but I have no problem with it. If you resell the stuff you no longer need, the costs can be very nearly free.


----------



## Plugging Along (Jan 3, 2011)

Montrealer said:


> It should be the other way around, you should have cash on you because spending cash is harder than swiping plastic. I have friends that put everything on there credit cards and pay it off at the end of the month, in my opinion it's the worst thing you can do because 1) It's not earned/owned money yet 2) It gives you freedom because you don't have cold hard cash in hand that your spending.
> 
> Try a monthly budget of cash to spend, it works!


I have to disagree with this. For some I could see using cash is better if they don't have the money or can't budget. However, we try to use the credit card for everything. It's more convient, and then I get points. So I am getting essentially someone to pay me to use it. Plus, it gives me a better cash flow. I find I don't spend any more or less using a credit card or cash. I do also have cash too for those places that don't take credit or debit. I've heard this from others too, but to be honest, I don't see an issue with using credit cards if the balance is paid in full at the end of every month.


----------



## carverman (Nov 8, 2010)

Plugging Along said:


> I've heard this from others too, but to be honest, I don't see an issue with using credit cards if the balance is paid in full at the end of every month.


+1
I also use my PC financial CC for groceries..keeps my decreasing pension money in the bank account a bit longer. 
They give you 10 pts for every dollar spent on the MC, but then
when you go to redeem them for food..well it's 100pts = $1 in food.

So they are not losing anything with that scheme. Of course they hope that
most people only pay the minimum each month and that way they change
charge 20% compound interest on the remaining amount.

Last month, I had my house/auto insurance on the monthly statement as
well as other purchases, so it was much higher than normal..

I ALWAYS pay off the CC balance 2 days before the due date. So far the CIBC (Commie bank) hasn't made a penny off me in interest on my CC and very little on my LOC for the odd time I borrow a hundred or two, (if I think it will overdraw
my checking account paying off the CC. ) 

In my MAY statement, $1120.xx ....they print a little hint that says:

"At your current rate of interest (19.97%), if you make only your
minimum payment ($24.65) by it's due date each month, it will
take approximately 20 YEARS AND 11 MONTHS to repay the acct balance
shown on the statement."

No wonder there are so many people on the verge of bankruptcy,
or deeply in debt with CCs. I only have one, but those that have
several and store cards that charge 29%...are very naive to think 
they can win at this game. 

I hate banks..but whatya going to do?..they pay next to nothing on the
money you put in savings and they rip you off on everything else..
..no wonder they make Billions in obscene profits!


----------



## larry81 (Nov 22, 2010)

All my credit-card are fully paid, automatically at the end of the billing cycle.

Automated finance++


----------



## Jungle (Feb 17, 2010)

Same. And the $2000-$3000 we redeemed in the last few years from CC rewards has helped us alot. 

Someone couldn't believe we got that much rewards so I did a post once detailing everything we got. 

I know with the smart cash, we have a few hundred back in cash. Might be under $500 now. That goes right into investments or mortgage debt. We also had a PILE of GM points, can't remember but it was $1000+ when we bought our SUV. Then we got $800 US rooms in Hawaii on SPG points from AMEX. 

Yes for the cattle average, debt stiken consumer, they need cash only and budget jars. However with us, we are an excection as we really do not discresionary spend in piddly things- IE money wasters.


----------



## carverman (Nov 8, 2010)

Jungle said:


> Yes for the cattle average, debt stiken consumer, they need cash only and budget jars. However with us, we are an *excection* as we really do not *discresionary* spend in piddly things- IE money wasters.


Yes..too funny, there is a show called "Til debt do us part"..and that's
exactly what she does, hides the CC and gives them cash in jars to 
pay for all their expenses for the month. And if they stick to her plan,
she gives them a $5000 check..cripes..I would do that for $500, never
mind $5000...

Jungle...your p's and t's don't seem to be working on your keyboard??


----------



## cooper (Jun 5, 2011)

When my wife and I started to "buckle down" with a budget and planning for the future, we found that we were spending way too much on things like eating out or extra purchases that we rarely used. Just things like starbucks visits, buying lunch at work cause we were too lazy to make a lunch the night before, that would slowly eat away how much we could save away. 

We were never crazy spenders but the typical "I need new summer clothes" with no defined idea of exactly what was needed, meant that 5 new shirts, 4 pairs of shorts and a new pair of shoes was purchased when really 1-2 pairs of shorts and a shirt is all that was really needed that summer (in context of current wardrobe). I'm sure you get the idea. 

Anyway, what we did was institute an allowance. Anything we want to do or purchase outside of the basic living expenses comes out of that allowance. So at the start of the month, we take out $300 each for an allowance in cash. That goes in our wallets and that is it. Spend it on what ever you want but once that runs out you're not getting a penny more until the month is over. 

Clothing, birthday/christmas presents, eating out, entertainment, or buying lunch at work cause you forgot to make a lunch is not part of our living expenses budget, that is something that each of us has to plan for and come out of our allowance. 

It is amazing how much it has changed our perception of how much we want something. Starbucks visits every other day have turned into 2-3 times a month. Buying new clothing has changed from spending of a few hundred bucks each to "I need 1-2 pairs of shorts, 1-2 new shirts but the rest of my clothing is in good shape"

Forgot to make a lunch for work? instead of spending $8 at the cafeteria, I'll grab a bagel or a banana and suck it up till I get home and make a dinner cause now it comes out of my "new computer" savings instead of the food budget.

I know that almost sounds silly to have an allowance, but it's forced us to save a lot more per month and get a lot more out of the things we've already got before replacing them. Not to mention, when we buy things, we tend to look at quality/long term use a lot more than we used to.


----------



## marina628 (Dec 14, 2010)

My husband use to do two trips to Tim Horton's a day which was over $13 a day habit , we gave it up in April 2008 and he took $13 a day and put in his bank acct every couple weeks .It paid for two family trips for 4 to Disney in 2009 and in 2010. 

We are Healthier now because of it as I had two extra large a day habit!


----------



## marina628 (Dec 14, 2010)

We pay everything on our credit cards to get points , my husband is crazy about his Canadian tire money but we always have emergency cash in our wallets in case we ever get stuck.I have had the same $40.00 in my wallet for about 6 months.


----------



## Jungle (Feb 17, 2010)

carverman said:


> Jungle...your p's and t's don't seem to be working on your keyboard??


Sorry I should have spell checked! I think my hands are too big for this little keyboard.


----------



## Jungle (Feb 17, 2010)

marina628 said:


> We pay everything on our credit cards to get points , my husband is crazy about his Canadian tire money but we always have emergency cash in our wallets in case we ever get stuck.I have had the same $40.00 in my wallet for about 6 months.


I used to get gas at CDN Tire gas station with those 6X-12X multiplier coupons. I would take the CDN tire money and buy a gift card in the store with the CDN tire money, then use it to pay for free gas. 

Now that the smartcash gives you 3% back on gas, I just use that. 

Speaking of which, we have been issued another $50 cheque from MBNA. It will be going in my TFSA.


----------



## Montrealer (Sep 13, 2010)

cooper said:


> When my wife and I started to "buckle down" with a budget and planning for the future, we found that we were spending way too much on things like eating out or extra purchases that we rarely used. Just things like starbucks visits, buying lunch at work cause we were too lazy to make a lunch the night before, that would slowly eat away how much we could save away.
> 
> We were never crazy spenders but the typical "I need new summer clothes" with no defined idea of exactly what was needed, meant that 5 new shirts, 4 pairs of shorts and a new pair of shoes was purchased when really 1-2 pairs of shorts and a shirt is all that was really needed that summer (in context of current wardrobe). I'm sure you get the idea.
> 
> ...


My wife and I started this last month and it's amazing!!!


----------



## greeny (Jan 31, 2011)

It´s a very good question. Maybe my answer is simply, but on the other hand exactly. Thinking is one of the best methods how to save own money. Good clue is a fact that money still represent the currency, not a human passion. That´s my short philosophy.


----------



## the-royal-mail (Dec 11, 2009)

Montrealer, you have filled half my screen with your unnecessary quoting, only to add one line at the bottom. As I believe I mentioned to you before, this is neither necessary nor desirable. Please stop it.


----------



## canehdianman (Apr 7, 2009)

the-royal-mail said:


> Montrealer, you have filled half my screen with your unnecessary quoting, only to add one line at the bottom. As I believe I mentioned to you before, this is neither necessary nor desirable. Please stop it.


I've spent far more time reading your posts whining about people quoting than I'll save on the day you finally convince them to change.


----------



## Zara Mari (May 19, 2011)

My coins and small bills go straight to my penny bank. The other thing is I scheduled automatic transfer from my payroll account to my savings account twice every month. So during Christmas season when a lot of deals for bargains and promo sales are everywhere, I'm able to buy something I wanted for the year. It's the cheapest I can get. It's good that I have a high E.Q. on things I want.


----------

