It’s almost time to go back to school, so watch your wallet to keep from overspending now

Can’t believe summer is almost over and Labour Day weekend is just around the corner.  No doubt parents are busy getting their kids ready for back to school.

It is also one of the most lucrative time of the year, aside from Christmas, for retailers.  No question we’re bombarded now with advertising to buy, buy, buy … on back to school deals!

Step back for a moment and give yourself space and time.   Do not do too much impulse buying, especially with persuasive kids.   Pause on your credit cards if there are things you can wait on buying until after mid-September.   You’re bound to save when they go on sale after the back to school rush is over.

For example: –
1)  wait for October sales on trendy back to school clothing.   They will likely be on sale then;
2)  many trendier items (like fashionable lunch bags) go out of favor very quickly.   Resist the urge from your kids to buy now;
3)  head to supermarkets to buy basic school supplies, along with your weekly grocery trips;
4)  check out consignment stores, craigslist and garage sales to buy and sell good quality 2nd hand items;
5)  stick to your shopping list;
6)  stick to your budget.

It pays to be aware and prepared.   You’ll be amazed with your saving results just by being pro-active with your back to school spending.

Back From the Future – Savings Basics

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I came across a recent ad with ex-dragon Arlene Dickinson espousing her goal-oriented strategy for saving money and restoring financial well-being.  Immediately, the book The Millionaire Next Door came to my mind.  This New York Times bestseller was published a number of years ago sharing with readers the surprisingly simple, yet effective secrets to amassing a million dollars or more.  Those strategies then still apply today, as they did for many generations before us.

Both messages are literally the same.  Slow and steady win the day when it comes to responsible saving and budgeting.

For example, you can save as little as $2.75 a day; and that can add up to $1,000 a year.  Think 20 years into the future, that’s $20,000 from just saving the price of a cup of coffee at Starbucks today!  This doesn’t even take into account the compounding effect of investing, which can potentially double (*) this total!

So by giving up a coffee at your favourite Tim Horton’s, walking or taking public transit instead of driving to your local store, and packing your lunch instead of fast food out, they can all add up.

There are many ideas to save.  Just google budgeting, saving tips, etc. and you will be bombarded with thousands of useful websites and ideas.   My book ‘The Personal Budgeting Kit‘ also has many smart saving ideas to help you on your way.

Here are some other strategies to keep in mind. They are simple, basic and logical.

Systematically:
– live below your means
– save your money
– pay down your debt

Always:
– have a plan/goal
– seek advice
– read up on saving ideas

As quoted from the Millionaire Next Door – “Whatever your income, always live below your means.”
And as quoted from Arlene Dickinson in the ad – “Keep at it when you can and it will add up.”

 

(*)  assuming a 6% or higher compounding annual return.

Save your money $$$

Here are some concrete saving ideas to help you keep more of your money.   Read my recent posts on how to save over $42,500 in just 7 years, even with only a 4% rate of return!

1)   Do not impulse buy, only shop for what’s on your prepared list;
(Studies have shown that as much as $3,700 a year is wasted on unnecessary purchases.)

 

2)   Lunch in (not out) more often;
(A average savings of at least $5 per meal when not lunching out.  Do this twice a week and you will save $520 a year.)

lunch in, save money

lunch in, save money

 

3)   Stop food waste, be creative with leftovers;
(Studies have shown that as much as 35% of our food ends up being wasted, or $2,200 year.)

 

4)   Pay your credit card bills on time;
(It’s obvious, many dollars can be saved when you stop those 18% to 20% interest charges levied by your credit card companies.)

no more credit card late payments!

no more credit card late payments!

 

5)   Look for cheaper phone plans;
(Even a savings of $20 a month in your phone plan will save you $240 a year.)

 

Add up all your savings and you are well on your way to top up your TFSA for a more secured future!

see your money grow!

see your money grow!