Making the most out of your money

[The Penguin]

I wanted to share various tips to make the most of your money. You are welcome to expand this list to contribute to this community.

Open a no fee banking account

This is a great account to have to ensure you have no fees if you use the account correctly. I will use President Choice bank for example. As long you only use PC, CIBC ATMs or use Interac at stores that does not charge an add on fee, you will never pay fees for transactions. They also offer free checks. There other banks offer no fee banking. I don't know what other countries offers it, but this does exist in Canada.

Cash Back Rewards Credit Card

Having a cash back rewards credit card is a great way to earn free cash for just spending money. Some things to consider. I would avoid cash back cards that have a annual fee. The only exceptions of this if they offer many other benefits that offers you good value. There are many banks offer cash back credit card with no annual fee. However, the only way you can benefit with this program ensuring you pay you balance by the due date to avoid interest.

Rewards Programs

Rewards programs is a good way to allow you to save up to buy something you really want in the future. Ensure you stay within a reasonable budget and you are able to cover all mandatory monthly expenses first.

Search for coupon codes

You will notice some online shopping sites when you enter at checkout, there a field to enter a coupon code. Well before you make that purchase, try to do a Google search to see if you can find that coupon code. These coupon codes fields exist for a reason.

Put money away each month

Before many will say they can't save money each month, in most cases you can even with the lowest income. Even if you only put $10 away each month, you will have $120 saved at the end of the year. The higher your income, the more I would put away. If you can afford to put $50 away each month, you will have $600 at the end of the year. Not bad for only putting $50 a way per month.

Buy things on sale

This is an easy one many people know about. Though don't go overboard with this one to put yourself into a lot of debt. Set a budget. I based most of my shopping buying things on sale.

 

[AustinTheAspie]

Thank you, Penguin. I needed this info, actually.

 

[Mia]

Another thing I might add, if you are a student or a senior or anywhere in between in Canada. And you already have a credit card from your bank, request a low interest credit card and replace the one you have. Most banks have them, they don't advertise it.

It may take you awhile, and they might offer all sorts of things instead, be quite definite about requiring one. The differences are interest rates of 11.9% versus 19.9% on purchase rate at the moment. Don't know if banks in other countries do this? Annual fee is twenty dollars.

 

[The Penguin]

It may take you awhile, and they might offer all sorts of things instead, be quite definite about requiring one. The differences are interest rates of 11.9% versus 19.9% on purchase rate at the moment.

Though I'm not a student, I found it interesting one day, a bank offer me credit card at 7.6% valid for purchases and cash advanced. It funny, my credit card rate is 1% lower than my loan at the bank. Right now, they gave me a 1% balance transfer for 10 months. I transferred higher interest debt to this card.

 

[Mia]

Another suggestion as well, always pay for most things you buy with cash. Don't use a credit card or bank card unless your stuck, or it's a large purchase. When you budget, withdraw a months supply of cash, fewer bank fees with one or two withdrawals. Portion out the cash, when it's gone, it's gone. Having the money in your hand, or wallet, helps you to realize how much you have, and how much is left.

 

[The Penguin]

Another suggestion as well, always pay for most things you buy with cash.

Agreed. What I do, I use my cash back credit card but ensure I have the cash in the bank to pay off the card. For a person don't know how to manage credit card well, stay with cash only.

Don't use a credit card or bank card unless your stuck, or it's a large purchase.

The other thing I would watch out for is stores that have a admin rate. I'm trying to avoid stores have this. I did learn when Desjardins took over Best Buy credit card from Chase, the admin fee went up. I was happy my laptop purchase was on the old terms. Desjardins admin fees are horrible.

 

[deedledee90]

I wanted to share various tips to make the most of your money. You are welcome to expand this list to contribute to this community.

Buy things on sale

This is an easy one many people know about. Though don't go overboard with this one to put yourself into a lot of debt. Set a budget. I based most of my shopping buying things on sale.

The only thing I would add to this is something that I have lived by and that is don't buy something JUST because it's on sale...I catch myself wanting something because I see it is on sale and I will have to stop and ask myself if it is something I would buy or use regardless of the price.

 

[The Penguin]

The only thing I would add to this is something that I have lived by and that is don't buy something JUST because it's on sale...I catch myself wanting something because I see it is on sale and I will have to stop and ask myself if it is something I would buy or use regardless of the price.

Very true. I know I was guilty last night buying All in One Portable Sink for camping that was on sale. I don't really need it as I do have bins already that I use for my previous trips. I did had the money for it as I was not worried. I do set a hard limit how many things I buy on sale since I don't want to go broke.

I think the worst thing someone can do is buy things on sale on a credit card for something they can't afford and they paying interest on it. In most cases for people do something like this, the interest they paying might be more than what they are saving so they are no further ahead.

The main thing I buy on sale is food and other necessities. By the time I'm out of that item, the same for is back on sale again. I buy on the right cycle.

 

[The Penguin]

Extra Pay Periods

If you are paid weekly or biweekly, there are certain periods of the year you get extra pay. If you are paid biweekly, twice a year you can get 6 weeks pay during a month period. For weekly pay employees, this can happen 4 to 5 times a year. I always watch out for these periods to work out what to do with this extra money.

 

[SteveH]

1.
credit-card debt=bad!!. Store-front pay-day loan places=worst things ever!!
2.
you can google websites that have calculators for how much % of your income should be spent on rent , car etc. Very helpful. but try to live under your means. Autism spectrum people do have some kinds emergencies that NT people don't so it is a way of keeping a safety-net for yourself.
3.
If you have the option of contributing to a 401K or something similar--max it out!!! Here is why. For example, in 2016, 60,000 of income is in the 25% "bracket" and pays an overall % of income of 20%. to Uncle Sam. So $2000 gets taken out of every $10K you earn. BUT if you put $10,000 into a 401K, nothing will be taken out of that $10K at all. That is a free $2,000. Of course there are penalties for taking it out before retirement. But you only will be taxed on the profit it generates over its life-time when you eventually withdraw it. The retirement experts say that this is the first thing to do with savings(after you pay off high interest debt. of course). Put that money into "indexed" mutual fund(which is a fund made up of many many individual company stocks to actively reflect the entire market of a part of it) If one company in your mutual fund bombs, it will have little or no effect on your mutual fund overall. An indexed fund means it is not actively managed--and will have way lower management fees. If you start saving for retirement in your 20's or 30's, you might save between $50-100,000 in management fees if you go with an indexed fund. You can google benefit of Index fund etc. For example, I have retirement 401K accounts with expense ratio of .05%(super low fees). For example, $10K x 30 =$300.000. But if you invested $10K in a 401k mutual fund every year for 30 year and got 7% interest(which is conservative) you would have $ 1,086,852.96.(this is only 30 years of annual saving, if you did the same thing for 35 years you would have 1,585,900.41) compound interest=
4.
If you are now at a low economic point that is OK-little steps. For a part of my life I just was just staying out of poverty and debt. When I finally became a RN with 401K benefits, I lived under my means, erased my debt ASAP , then started maxing out my 401K. Now, I can max out my 401K and also build my savings account. Good luck. Not easy. It was all hard little steps for me.

 

[The Penguin]

credit-card debt=bad!!.

I don't find credit card debt bad if a person pays off the amount before the interest is do. Having some credit card debt is good for a person to build a credit history. However, it not good if the person don't know how to manage debt correctly.

Store-front pay-day loan places=worst things ever!!

I call those folks legalized loan sharks.

 

[The Penguin]

Registered Retirement Savings Plan (RRSP)

For Canadians it is worth investing into RRSP to have money for retirement and also being eligible to be taxed less. I do understand though this is hard to do for low income people.

Tax-Free Savings Account (TFSA)

In Canada as off 2017, you are allowed to contribute up to $5500/year towards a tax free bank account without being taxed on earned interest. Some people mixed up TFSA with RRSP that with TFSA, you pay less taxes per year having an account. This is incorrect. The only tax free part of this account is earned interest. TFSA is more good for saving for something you want to buy for the future and cover emergency expenses. You have control for frequency you would like to contribute to this account. Myself, I do it bi-weekly. You are allowed to withdraw anytime without penalty. However, you must wait one business day before you have access to your money.

 

[SteveH]

I don't find credit card debt bad if a person pays off the amount before the interest is do. Having some credit card debt is good for a person to build a credit history. However, it not good if the person don't know how to manage debt correctly.


I call those folks legalized loan sharks.

The Penguin, you make a good and accurate point about credit card debt. You can help build your credit score with it. However not necessary ingredient to get good credit rating. I got mine above 800 without using a credit card. Definitely go to your personal strengths and weaknesses. Credit-cards are a stressful thing for me to keep track of and it is too easy to just use my debit card. In America it is a scandal how much of people's income goes to credit card interest. I do have a credit card for emergencies.

 

[The Penguin]

I got mine above 800 without using a credit card.

There would have to be something financially you did to build your credit history. I'm guessing you got a loan some point of your life and was good making payments.

s a scandal how much of people's income goes to credit card interest.

One of the things mess me up 15 years ago when I got a credit card is that bloody insurance. They say is $1/month for every $100 you owe. They don't tell you it could be 12% additional interest per year. I think I paid at least $5000 into this over 7 years. If I didn't purchase this, I would have been able to pay off my debts faster.

 

[SteveH]

There would have to be something financially you did to build your credit history. I'm guessing you got a loan some point of your life and was good making payments.

Yes!
I bought a car! There was Zero Percent interest and a huge rebate for taking the loan. So I wrote a check for the maximum amount allowed. My payment was $200/month (us dollars). I set it up auto-pay from my bank account so I could not screw it up. I paid off the whole thing a few months ago. I'm sure that helped my credit. It may have taken me much longer to build my credit back up because I was not using credit-cards very much. But I know my issues and weakness well so I stay away from trouble and stress. I think Canada has better consumer protection laws when it comes to credit cards.

 

[Aeolienne]

Take a packed lunch to work instead of buying food to go.

 

[Progster]

At the supermarket:

1. Look out for offers for things that you would buy anyway, and when the offer starts, stock up. Make sure it's something that you would buy anyway, otherwise it's not a real saving.

2. Always look for the offers on the bottom shelf. Bulk buys and better deals can be found there. Buying in bulk is cheaper.

3. Always compare prices, and work out what is cheaper by the kilo/liter. Some supermarkets give the price per kilo/liter on the label, usually in very small writing, because they want customers to use their emotions rather than their brains to buy products. I'm one of those pesky, difficult customers who actually uses their brain to work out pricing, supermarkets just hate customers like me

4. Shop in late afternoon/early evening. That's when the guy comes round to mark down prices on products that are nearing their sell-by-date. If it is meat, fish or ready meals, buy up the whole stock or reduced products and then freeze them until you need them. A cuople of days ago I arrived at the supermarket just as the guy was marking packs of salmon down, packs which were already on special offer before the marking down, and bought all 6 packs. If the mark down is 30%, it means that almost 2 or those packs were 'free'.

5. Things like yoghurt and cheese can be kept a couple of days beyond their sell-by-date and still be safely eaten, so it's worth stocking up on reduced cheese and yoghurt.

6. Only buy items that you would buy anyway.

7. Beware of special offers. See them for what they really are. Special offers are the result of a deal between the supermarket and a company wanting to promote a product. Special offer doesn't mean cheapest product, so you should still look at the prices and compare. A brand name shampoo on special offer may well still be a lot more expensive than a supermarket own brand shampoo.

8. Plan out your meals. Decide what to have on each day, take stock of what you already have and write out a list of things you need to get before going shopping.

9. Don't go shopping on an empty stomach, as you are more likely to buy too much shop.

10. Always finish off/use up the old before buying the new. Don't go shopping until you've used everything (or most things) up.

11. Having done all that, give yourself a treat - ice cream chocolate, etc, but don't go overboard on it

 

[Rich Gray]

I invest in mutual funds. I also buy board games off of Kickstarter and sell them on eBay. Compound interest can be a good friend or a terrible enemy. Investment income almost seems like it is cheating.

 

[tducey]

All great info here for sure. Thanks for sharing. I started budgeting last fall, such a great idea and 1 I'd suggest anyone do.

 

[tlc]

Extra Pay Periods

If you are paid weekly or biweekly, there are certain periods of the year you get extra pay. If you are paid biweekly, twice a year you can get 6 weeks pay during a month period. For weekly pay employees, this can happen 4 to 5 times a year. I always watch out for these periods to work out what to do with this extra money.

Good thought as I know other people who do this. But to me, that extra period has to come from somewhere, at the end of the year I don't actually make any more money.

I've lived on nothing for far too long. Some of the only ways I got by:

Learn to fix things myself. Especially big ticket things like cars and appliances and the house. Utilize junkyards for parts if need be. Drive older cars, and have more than 1. Older cars are cheaper, parts are often cheaper, easier to work on, insurance is cheaper, registration is cheaper. I can keep two 20+ year old cars registered and insured, for less that others I know can keep one later model. And you've always got a backup you can fix on your own time. Newer cars still break down, and you're pretty much helpless if you've got only one.

Drive slower and more smoothly. The longer you can leave you foot off the gas, the more you're saving. The wind resistance from going faster increases drag exponentially. Also slowing down makes me feel better. Every time I'm able to stop for a deer that I would have hit had I been going faster, I know I'm saving money and inconvenience. Also utilize Gas Buddy for current prices so you can choose where to go.

If you have a choice, like maybe have an existing woodstove, burn wood for heat. Even better if you know somewhere you can cut up your own free wood, your heat will be almost free. I did this for 17 years in the old house and my dad still does. Even pellets, at least here, is much cheaper than burning LP gas.