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Month: July 2021

A Budgeting Guide for Canadians

A Budgeting Guide for Canadians

corporateThere are many reasons for Canadians to want to live on a budget. The current economic state, both locally and worldwide, is more than a significant reason. It is shrewd to save money in such uncertain times, regardless of whether you are employed or not. It is somewhat of a bleak situation with the Canadian unemployment rate holding steady at 7.1 percent. Even individuals that are employed may not be taking home considerable salaries. The minimum wage in Canada is between $10.45 and $11.20 an hour. Here are some tips for reducing the spending:

Know Your Worth

You cannot prevent yourself from going over budget if you do not have a budget in mind. The first thing that you need to do is take a long and hard look at your financials. Look at the total income of your household. The main goal of this practice is to determine how much money you have in a single month. The ideal outcome is to have at least a small portion of the income left over. These should be contributed towards your savings.

Make a Plan

Now that you are aware of how much you have at your disposal, it is time to separate the bare essentials from the frivolous items. List all of the things that you absolutely need to spend on each month. This typically consists of rent and utilities. You can certainly reduce how much you spend on utilities, but there is probably a limit, particularly during winter. Groceries are certainly something that you require. There is, however, no set amount that you have to spend each month. Food and other household items are one of the major ways through which you can save more money.

Saving on Food

Buying groceries from discount stores such as Real Canadian Superstore can trim as much as 10 percent off your grocery bill. Walmart stores that also sell groceries are another alternative to big produce stores. This is because Walmart will match the prices of its competitors, allowing you to get the lowest priced food items possible. You can further reduce your grocery bill by buying generic brands rather than the pricier, name brands. Flour, sugar, salt, and other base ingredients have very little discrepancy in quality across the brands.

Buy Household Goods in Bulk

There are certain items such as toilet paper that are considered non-perishable – they have no expiry date. You can reduce how much you spend on these things by buying them in large quantities. Shop at stores such as Costco and Sam’s Club to save even more. Costco’s for instance, provides those with membership to save on items bought in bulk.

Buy Second-hand

Clothing items for children and even adults can be quite costly. To cut your expenditure on clothing, shopping at thrift stores and second-hand stores are good places to start. There are two choices when considering this option – independent consignment stores or chain organizations. The chain stores that you can visit include Goodwill, Value Village, and the Salvation Army. Consignment stores offer an additional benefit – you can trade your old clothes for a decent settlement.

Do It Yourself

Whether it is cooking, fixing, or even creating, one of the easiest ways to save money is to simply do it yourself. Relying on items and ingredients sourced by third parties, may be one of the costlier ways to live. It is best to rely on your own resources when the opportunity presents itself.

There are many different ways for Canadians to budget. You simply have to create a fiscally sound plan and stick to it. Once you get started, you will find more and more ways to save money.