According to Scotiabank, once the goblins and ghosts of Halloween have disappeared, there are some creatures that stick around, wallet gremlins. A recent Scotiabank poll found that Canadians spend an average of $306/month on unplanned purchases and splurges (wallet gremlins).
Wallet gremlins can come in the form of a splurge on an unplanned night out, buying clothes while window shopping, or buying your lunch instead of bringing one from home. Small purchases can really add up month over month – and ultimately put a remarkable dent on savings unless you've planned ahead.
With the holiday season coming up, this is the perfect time to plan ahead for wallet gremlins that arrive during the festive season. Scotiabank offers their tips for how Canadians can protect their savings.
• Create a proactive strategy with a savings plan – and a gremlin fund. What do you want your future to look like? Whether you want to travel the world, buy your first home or set up your child's college fund, the best way to reach your goals is to create a financial plan. You can keep yourself in line and the wallet gremlins at bay by developing a financial plan with short, medium and long-term goals – building in a bit of a cushion.
• Make your goals measurable. If you want to create a gremlin, rainy day or emergency fund on top of your other savings plan, put a plan in place to get there in a set amount of time. This way you will know if you are getting off track.
• Monitor the wallet gremlins. Keep an eye on your spending. By using online banking, mobile banking and/or InfoAlerts, you'll see an accurate picture of how much you are spending and where. If you recognize a pattern where you are spending too much at a particular store or restaurant, you can adjust and start building healthier spending habits.
• Commit to protecting your savings against wallet gremlins. Effective saving isn't something that happens overnight before a big purchase. Make your planned savings important and non-negotiable, like paying off your hydro bill or a car payment.
• Get to an expert wallet gremlin advisor. Financial advisors are trained in the best ways to protect and grow your savings. They can give you personalized advice on which savings techniques will work best for your lifestyle and spending habits.
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