If you’re at all like me, you’re looking for ways to decrease your spending. Maybe you’re saving money for something specific, or maybe you’re trying to crush your debt. Either way, I commend you for your efforts. Many of us go through life knowing we need to do a better job saving money but never doing anything about it.
You? Well, you’ve made your way to this post. Step one, check.
I was a spend-a-holic through university when I was living off student loans. Ever since leaving school though, I’ve whipped myself into shape.
Out of school, my first focus was paying off my $31,000 of student loans. With that paid off and out of the way, I’m finally saving up for my first property and boy, am I motivated!
Through it all, I’ve found some fairly easy ways to save a good chunk of change each month. Last year, I saved 39% of my take-home pay. These top tips of mine supercharged my savings rate, and hopefully can do the same for you!
#1. Pack a lunch
This is one of the easiest ways to save money each month and yet I see so many people getting it wrong.
A prepared meal at a fast food joint in most cities will run you between $10-15. In Toronto, it’s typically about $15. Buying lunch 5 days a week in Toronto will run you about $75/week, or $300 a month!
Most people can live off $300 as their entire food budget for the month. If you don’t already, do yourself a favour and get used to packing a lunch. It’s a habit you’ll need to build, but it’s well worth it.
I find the easiest way to manage this is by always making enough dinner the night before that I’m able to take leftovers the next day for lunch. It’s only a fraction more effort to do the extra prep and doesn’t take any extra brainpower.
Another good way to make lunches with less hassle is to make a big batch of something that will last you at least the first few days of the week. Some folks dedicate their Sunday night to meal prep. More power to them, but that’s just not happening at our house. We will, however, meal prep one element of the dish for the week. Some of these staples are quinoa, potatoes, grilled veggies, or a rice dish. We’ll make lots of it on the weekend or early in the week, and mix it in with staples that we keep on hand like salad greens, beans or legumes, veggies, and homemade sauces to make a hearty buddha bowl.
Spend a few hours one night looking up lunch ideas online to get some inspiration, and stick with it until you find what works for you.
#2. Make your own coffee
I work with many people who buy their coffee every day when it’s available for free at work.
I get it. The free coffee isn’t very good, and Toronto has some excellent cafes, but it’s also not hard to make delicious coffee for yourself, at a fraction of the price.
If you’re one of those folks that buy coffee every day, I challenge you to create a new routine for yourself. Invest a week’s worth of your take-out coffee budget in setting yourself up longer term. Get yourself a portable thermos so you can make your coffee at home in the morning or better yet, set yourself up with a French Press and some beans at work so you can make your own whenever you want. You can buy fresh, delicious, locally roasted coffee beans and still save tons.
If you want to step up your coffee game even more, get yourself a milk frother to make at-home cappuccinos. Er. Ma. Gosh. Can I just tell you, you can make coffee with this that rivals cafes in Europe. I bought this one for $20. We’ve gotten SO MUCH use out of it and we no longer get the urge to hit the cafe on weekends for a $6 cup. We typically use organic cows milk or almond milk. It works with either and I imagine it would work with most other non-dairy milk beverages.
#3. Give yourself an allowance
I love to shop. I’m beyond happy to spend an afternoon at the mall, buying new clothes, shoes, or accessories.
I used to be convinced that I had nothing in my closet to wear and that I needed these things.
Nine times out of ten, I didn’t.
I was buying because of that endorphin rush that surges through you when you get something new. When my partner and I started dating, this became even more of a problem for me. He loves shopping too which only enabled my shopping habit.
Eventually, I put myself on a shopping budget. I gave myself $100 a month to spend on clothing. Some months I truly needed something specific for my wardrobe – a pair of dress shoes for an upcoming conference or a pair of jeans to replace a ripped pair, but other months I was able to spend my allowance on whatever I wanted. If I wanted or needed something pricier, I’d have to save my $100 for 2 or 3 months before I could buy it.
Many personal finance gurus suggest putting yourself on a budget. If you’re not quite ready for that commitment though, giving yourself an allowance in your biggest problem area(s) is a great step to save yourself some coin.
#4. Reduce or eliminate recurring fees and costs
Finding ways to eliminate or reduce a one-time purchase is great, but being able to eliminate or reduce recurring costs is SO MUCH MORE powerful. In the era of subscription everything, I urge you to eliminate your recurring costs as much as possible.
One of the hefty culprits in this category is gym memberships. They can cost anywhere from $75 to $150/mo (particularly if you’re in a big city) and most people aren’t using them enough to get their money’s worth. Invest in some basic equipment for your home, use bodyweight exercises to stay in shape, and do your cardio outside.
While you’re at it, take a look at your streaming platforms. There are at least five or six popular ones out there now but paying for all of them at once is unnecessary. I’d be willing to bet you binge-watch your TV now anyway, so if you have a Netflix account and are interested in a couple shows on Crave, cancel Netflix for the months you’re using Crave. You can always switch back after.
Beauty is another culprit in this category, and these costs can really add up. Mani/pedis, hair colouring, waxing, etc. Find ways to look after these things at home yourself, find alternatives, or get comfortable embracing your natural beauty and striking them from your routine altogether! You’ll save thousands over the course of the year.
The last thing I’ll say on this topic – you might not be willing to part with some of these things and that’s okay. When that’s the case, see if there’s an opportunity to join a family plan with friends or family members. These can save you quite a bit of money in the case of gym memberships and cell phone plans in particular.
#5. Stop buying disposable items
Convenience has lead us to rely on disposable everything. Paper towels, food wrap, coffee filters, makeup wipes, razors. This list goes on.
These things add up, and they all feel like necessities for the home.
Spend a few extra dollars and buy reusable versions of these items. Not only are you saving money, but you’re helping the planet at the same time. Read more about the re-usable swaps I’ve made and swear by.
#6. Try a no-spend month
Have you seen the TedTalk about that woman who did a no-spend year? She saved over $35k CAD by only allowing herself to purchase the absolute necessities for that year. There was no eating or drinking out, no Ubers or transportation costs, and no shopping except for basic food and household supplies.
If you ask me, a year is TOUGH. All the respect to Michelle McGagh, but I can’t see myself following through for a full year.
Instead, I suggested to my partner that we do a no-spend month.
Last year we did it in February. The timing was perfect – our wallets were hurting from the holidays and shopping the January sales. Though I didn’t track exactly how much more we were able to sock away that month, it was significantly more than usual. We now do a no-spend month at least twice a year.
This year, we’re doing dry January so we doubled up and also made January our no-spend month. We figured we already won’t be going out as much or buying alcohol, so the two work pretty nicely together.
Socially, yes, this can be tricky. If you don’t feel like telling friends what you’re up to, you can always default to being “very busy” that month, but I’d actually recommend sharing what you’re up to.
My partner and I have shared what we do with a number of friends and quite a few have come back to us weeks later to tell us we inspired them to do the same. Getting friends on board means you can even sync up your no-spend months to ensure everyone’s on board for low key hangouts that month!
Learn more about how to do a no-spend month!
#7. DIY your own products
I’m a DIYer in my heart of hearts which is why I couldn’t possibly build this list without including this life hack. Even if you aren’t into DIY by nature, this is a tip to consider.
I have saved SO MUCH money DIYing my own products over the last few years and many of them I love so much, I would never go back to store-bought versions. With cosmetics, beauty products, and toiletries costing $8-15 each, a trip to shoppers used to easily wrack up a $60.
Check out my list of favorite DIY beauty products.
These things aren’t all that hard to do, but in the long run, will save you thousands. Pick out one or two that you think are achievable and let the success of those fuel you through the rest!
This article is great, some ways to tuck away a few extra bucks that I hadn’t really thought of! Would love to learn a bit more about how much you were spending before and after.