How dedicated are you when it comes to saving? As a new survey by Tangerine reveals, many of us aren't nearly as savvy on money matters as we think with almost a third of respondents regularly tapping into their savings for an unexpected purchase. To spring clean your finances and better meet your saving goals, here are three quick tips to help you get started:
1. Make a budget - To effectively save money, start by looking at where you're spending it. An easy way to do this is to open an Excel spreadsheet or simple pad and paper to start tracking where your money is going. Seeing a monthly or yearly breakdown of how much your morning coffees or work lunches are costing you may help you find ways to cut back unnecessary expenses.
2. Stick to the plan - Knowing what we can and can't afford instead of splurging beyond our means is very important. Credit cards are convenient, but you'll want to avoid using them if you can't pay off your balance in full each month. Otherwise, you could end up wasting your potential savings on high interest payments for outstanding credit card balances.
3. Pay yourself first - Many of us find we don't have money to save when the end of the month rolls around. This is where an automatic savings program can help. “With an ASP, you earmark money to go into your savings account automatically without ever having to think about it,” explains Silvio Stroescu, the managing director of deposits and investments at Tangerine. "This makes it easy to save much more, helping ensure you're covered for both your long-term goals and the unexpected."
