SAVING FOR TODAY:
SMART SPENDING

Small things really do add up. It’s just a matter of prioritizing a bit. Now that you have your financial picture, take a look at your food, clothing and entertainment spending. Are there any places where small expenses can be eliminated? Let us help you start thinking about where you could make some small adjustments.

A little off the top
If, for instance, you are spending $4/day on caramel macchiatos, you can try drinking them every second day or even making it a weekly treat. Treat yourself to your gourmet drink once a week, and you’ll see the savings roll in.

A macchiato a day = $4
A macchiato for a month = $120
A macchiato for a year = $369
A macchiato for a decade = $14,400!

Before you start doing all sorts of ridiculous calculations, just remember that the less you spend, the more you save. It really is that simple. The hard part is letting go of the things you think you need but don’t.

Smart Spending Tips:

1. Let small amounts add up. It’s a matter of choosing what to cut from your lifestyle. Your savings could grow by dining out less often or skipping that impulsive magazine purchase at the grocery store. Choose what works for you, and the sooner you start, the sooner your savings will grow.

2. Explore your buying options. We all know impulse-buying is a dangerous practice. Taking the time to peruse the sale rack or researching the services of a professional (say, an accountant or mechanic) isn’t such a bad idea. Explore your options and see where you can save the most money because saving money on big-ticket items will mean big savings for you. Just remember to put what you save into your savings account, rather than towards a celebratory shopping spree.

3. Resist credit. Credit card debt is a troubling issue. If you don’t pay off your purchases before the end of the month when the interest kicks in, then you’re paying more for a product than other people are who pay cash.  Resist using a credit card for smaller items; instead, set cash aside every month until you can afford to buy it. Keep your credit limit levels low, which helps to resist spending spree temptations. 

4. Reduce borrowing costs. If you’re carrying a balance on more than one credit card, you can lower your borrowing costs by consolidating all your credit card debt on to one low interest rate credit card or a line of credit with a lower interest rate. Negotiate with the credit card company—you may just get your rate cut in half or get your annual fee waived if you’re willing to move all your credit card debt to one company. Pay the debt that charges the highest interest rate first, even if it’s your department store card with the lowest balance.

5. Bank well. Financial institutions say they want to help you save, but service fees and administration charges can really add up. Find a financial institution that doesn't overcharge you and also pays a decent rate of interest for your savings. By the way, our accounts pay decent interest rates and don’t cost that much, which we admit is quite convenient. Check out our accounts.