Canadians are in debt. With high inflation, rising interest rates, expensive housing, and increased spending, it should come as no surprise. If you are struggling with debt and insolvency, reach out to a Licensed Insolvency Trustee for help.
Each month, after all the bills are paid, you wonder how to save money. You can’t figure out why your bank account is depleted.
You thought for sure you’d be able to put aside a few dollars this time. Maybe you’ll start after your raise.
No need to wait for that next big bump in salary. Saving is a habit you can start today.
Conventional personal finance wisdom says to pay off your credit card debt before saving money. Great… but, what happens when you don’t have savings?
You’ll be unable to cover unanticipated expenses, and go deeper into debt.
So you want to do both. Save money AND pay down your debt. Here’s how:
How to Save Money Fast
Ever hear the old adage: Pay yourself first? It’s your money. You earned it. Why should you be the last one in line to get paid?
It requires no discipline to auto-deduct savings on the day your paycheque is deposited.
You don’t have to lift a finger…or make a decision. It couldn’t be easier.
How much should you save? While 10% is a good benchmark, save what you can, even if it’s very little. You have to start somewhere.
Your aim is to build a habit and increase the amount over time, not stress yourself out even more.
After you pay yourself, take care of your essential, recurring monthly expenses.
You will, of course, want to take a close look at your budget and cut discretionary expenses where you can.
If you’re going to cut a budget item, those new glasses or that night out with the girls can wait. Because you already put that money in a savings account.
With a little planning and foresight, it’s easy to keep going.
How to Get Out of Debt
You know how you can save even more? Figure out how to pay off credit card debt.
Start with your smallest bill. Try to double, even triple, the minimum payment.
For example, say you have an $800 bill. Because it is a department store card, it also happens to carry a high-interest rate of 26%.
At the minimum $25 payment, it will take four years and eight months to pay it off.
But at $50, you’ll be done in a year and 8 months.
What if you pay $100 a month? You’ll finish in just 9 months…paying nearly $500 less in interest.
Now you can put that $100 toward the next smallest bill.
The most important thing is to start today. And you’ll be well on your way to taking charge of your finances.
If You Need More Help
If you have followed these tips and are still struggling with debt, talk to a Licensed Insolvency Trustee today at Adamson & Associates.
A Trustee can help you restructure your debt and strengthen your financial health. Call for a no-obligation free consultation. 1-519-310-JOHN