Saving money doesn’t mean you have to give up all the fun. Whether you’re planning a sunny vacation or splurging on concert tickets, a few minor tweaks to your habits can make all the difference.
If you’ve struggled to save or find it challenging to stay consistent, you’re not alone. Half of unretired Canadians haven’t set aside money for retirement in the last year and 39% have never saved for retirement, according to a recent survey by HOOPP and Abacus Data. The good news is that you can easily incorporate a few simple, low-effort hacks into your daily routine to help grow your savings.
Automate your savings
An effective way to save without thinking is to automate it. It’s the tried-and-true “set it and forget it” method. Begin by setting up recurring transfers to a high-interest savings account (HISA) or an investing account such as a Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP).
Even if you start with small amounts, it can add up over time. Plus, you won’t miss what you don’t see. Soon, you’ll be amazed at how effortless this savings strategy feels. Plus, if your employer offers a workplace pension or savings plan, it’s important to take advantage of it. This is a valuable way to automate savings right from your paycheque.
Budget without the buzzkill
Spreadsheets can be a helpful way to budget, but they aren’t for everyone. Fortunately, there’s another way to enjoy your lifestyle without feeling restricted. Instead of using a traditional budget, try using a “fun-first” approach.
How it works: First, decide how much you want to spend on things that you enjoy. Then work backwards to make sure essentials and savings are covered. Following this approach helps to make budgeting feel empowering, not constrictive.
Use the “low-effort wins” strategy
Start with one small change that won’t feel like a big sacrifice. For instance, consider using a round-up app that automatically rounds up your purchases and saves the difference.
Another approach is to locate a subscription you no longer use and cancel it. These micro-habits help to build momentum and instill confidence without requiring a major lifestyle overhaul.
Prepare homemade meals
Dining out or ordering takeout can take a toll on your wallet. The most effective way to save on food costs is to buy groceries and cook homemade meals. Start by creating a weekly meal plan and writing a grocery list. Stick to your grocery budget by cooking extra portions that you can pack for lunch during the week. Try trending recipes on social media to keep it fun!
Get deals with discount codes
Look for coupon codes to help you save money on your next purchase. They can be digital or physical coupons that you can apply during checkout. You can find seasonal offers or promotions during special days like Black Friday or Boxing Day, but promo codes are also around all year. By applying this method, you can cut costs and keep more money in your pocket.
Make your money work while you chill
Looking for hacks doesn’t mean you’re being careless. They can save time and help you earn money. One smart way is to leverage available investing tools, such as robo-advisors or pre-built investment portfolios. With these done-for-you portfolios, you don’t need to be an expert at picking stocks to start investing.
These tech-savvy solutions can help your money grow passively in your investment accounts, such as your TFSA or RRSP. This hands-off approach allows you to build wealth while enjoying life.
Outsource the hard stuff
You don’t need to track your finances manually (unless you enjoy crunching numbers yourself!). There are personal finance apps that can help you track your spending, categorize expenses and suggest savings goals.
Other financial tools can help determine your net worth, summarize your investments and assist with debt payments. So, take the mental load off your plate by delegating certain tasks to tech, saving you time and energy.
Prioritize what actually matters.
Saving for retirement might feel like a “future you” problem. However, achieving small milestones early can make a big difference later and help you become financially secure. By taking steps today, you can enjoy your life today knowing that you are also building for your future.
Are you a HOOPP member?With a HOOPP pension, you have one less thing to worry about when it comes to saving for retirement. Your pension is based on a formula, not stock market returns, so it is secure and predictable. When you retire, you'll receive your monthly payments for the rest of your life. You can get a preview of what your pension will look like using the Pension Estimator on HOOPP Connect. |
Starting small can lead to big results
No matter what savings strategy you choose, the key is to get started. Once you take that first step to get the ball rolling, you’ll be on your way to building solid saving habits.
Before you know it, saving will become effortless and natural to you. The best part? You’ll be able to enjoy the rewards guilt-free, whether that means checking off your dream vacation or enjoying the freedom to have new experiences now and in retirement/
Read more: