How to $ave Your Money
Maintain A Proper Perspective About Money
“Do not store up for yourselves treasures on earth, where moth and decay destroy, and thieves break in and steal. But store up treasures in heaven, where neither moth nor decay destroys, nor thieves break in and steal. For where your treasure is, there also will your heart be.” Matt 6:19-21
“What profit is there for one to gain the whole world and forfeit his life?” Mark 8:36
You will make at least 300 payments on a 25 year mortgage. That being said, you can ideally reduce the number of payments in your mortgage. You do this by making extra payments.
When you make a payment, you are paying on both the principal (what you owe) and the interest (what the bank charges you). On some mortgages, you are allowed to make an extra payment each month or year which can be applied directly to the principle.
Now lets say your mortgage payment is $1000 a month. At the beginning of your mortgage, you are probably paying mostly on the interest. So lets take a hypothetical situation: On your new mortgage, you make a payment and $650 goes to interest while $350 goes to the principle. Here you are paying $350 towards your mortgage. Now, lets say you make an extra payment of $350 that month. This is applied directly to the principle. You now have 298 payments left. You have now decreased the length of your mortgage and have saved the $650 you would have paid if you hadn't done this! straightforward isn't it?
Your building equity quicker and paying down your mortgage much sooner? You'd save thousands of dollars!
Keep in mind that as you are making payments, the amount applied to your mortgage principle increases - that's a good thing! It would make sense even to borrow money to do this.
Here's a simple way to save money on car repairs: Before you go the garage to have your car serviced, get a free estimate for the repairs to find out what it will cost and get an itemized list of the parts you will need. Instead of relying on the garage or service centre to get the parts, you go to the parts wholesaler yourself and pick up the parts.
You'll end up paying way less for the parts because of the of mark-up at the service centre.
Before the garage starts the repairs, ask them what their hourly rate is and specifically, how long it will take to carry out the repairs. I do this and save myself hundreds of dollars on a major repair!
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The last thing we should be doing is filling our tanks when the prices are high. We want to slow down the demand which will bring down the price of gas.
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Drive less or buy smaller compact cars.
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Plan ahead and take the shortest route to where you are going.
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Take the bus, subway or carpool.
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When on the highway, don't go over 100 kms/hr / 60 mph.
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Maintain adequate air pressure in your tires.
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Change your air filter often.
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Just like everything else in the marketplace, prices are driven by supply and demand (and greedy speculators).
Various Ways to Save Your Money:
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Pay yourself first. Save at least 10% of your paycheque and put it in the bank or make extra mortgage principle payments.
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Use cash instead of credit cards.
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If you don't already have one - BUY A HOUSE. Never buy a house that has semi-detached houses or apartments nearby. However, buy a semi-detached or townhouse in a neighborhood of nice houses.
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Never pay utilities early, that way you keep your money longer (it's psychological).
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Paying bills online saves you time and money. You can also send and receive money with your online bank account from anyone else with an online bank account. Ask your chartered bank to help you set it up.
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Why buy newspapers and magazines when you can read them online for free. Even if the paper or magazine your reading online doesn't give you access to a particular story, all you have to do is enter the story name in a search engine and you'll be able to find it for free somewhere else.
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Cancel your cable or satellite subscription and watch T.V. shows and movies on your computer. You can even hook your computer up to your T.V. to watch on your television screen!
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No need to pay for internet access now. There are many free internet service providers.
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Instead of mailing someone a letter which takes more time and costs you postage; email it.
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You can also email wedding or party invitations, photos, greeting cards, post cards etc. etc. There many internet sites that you can make your post cards (ecards) and invitations for free - quick and easy.
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Why pay for long-distance when you can go to a site such as Skype and use the technology referred to as VoIP (Voice over Internet Protocol). It's free as long as you and the party you call has Skype as well. Registration is also free.
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Pay your own property taxes (instead of having the bank collect it for you) thereby accruing interest which is yours.
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Don't buy anything unless you need it. Someone once said to me “At least I'm getting something for my money.” I say: “If you are spending your money, it's spent.”
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Start a home business to help with income tax deductions.
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Consolidate bills at the lowest interest rate you can find, and have the self-discipline not to accumulate anymore debt.
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If something appears to good to be true - It probably is. Don't take part in any get rich quick schemes.
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The stock market should be played by people who can afford to lose the money they put in it (that's including RSP's). Originally, it was never meant to be a vehicle for retirement investing.
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Stay married, divorce is costly.
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Maintain employment, even when planning a major career change.
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Always live BELOW your means.
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When times are good, save. The economy is cyclical and will eventually bottom out.
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Do up a budget to see what you're spending your money on. Account for every dollar you spend (but be charitable towards others- especially the poor).
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Never pay full price - haggle (aggressively bargain) or simply ask for a lower price. Everything is negotiable!
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Save money on your cell phone by finding a cheaper carrier. (The Canadian Radio-television and Telecommunications Commission (CRTC) today issued a decision requiring all Canadian wireless telephone companies to implement wireless number portability (WNP) by March 14, 2007, in most of Canada. source: CRTC) The U.S. also has wireless number portability.
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Nothing is guaranteed including: your job, your pension plan, or your bank account. If things got really bad, not even the Federal Deposit Insurance Corporation could help everybody.
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Save money by doing simple maintenance yourself like painting etc. and hire licensed contractors for the more complicated tasks such as electrical wiring etc.
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Use area rugs to protect carpets and hardwood floors in heavy traffic areas. If you have carpet in your house, never walk or let anyone walk on it with shoes. Walking on carpet with shoes will dramatically reduce the life of your carpet.
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Preventative maintenance like applying a waterseal to fences and decks every year will save you money in the long run.
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Make sure water from gutters is draining away from the house and that the ground around your foundation is elevated so that water is draining away from the house. This will prevent water and moisture problems in your house thereby saving you money.
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Do your own lawn maintenance and lawn care.
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Learn how to be a “do it yourselfer” by taking a free seminar at your local hardware store i.e. Home Depot etc.
Save Money at the Grocery Store:
- Check flyers for sales and coupons.
- Go to the grocery store with a list and stick to it.
- Buy groceries for no more than one week at a time. It is too hard to plan for two weeks and you end up spending more money in the long run. It might be convenient to be in the grocery store every two weeks but it will cost you more money.
- Think of plastic wrap as an investment. Wrap food well and it will last a long time saving you from having to throw it out.
- Never go the grocery store hungry, you'll end up spending more money.
- Buying in bulk doesn't necessarily save you money.
- Buy generic or no name brands when possible.
- Buy items like Sidekicks; add more of your own noodles or rice, and you have an inexpensive meal for the whole family.
- Apply for the in-store card where you shop to take advantage of even more savings.
- When you are at the checkout, make sure prices are correct. Some stores have a policy that if they make a mistake scanning your item, they will give it to you free. Some large retail and grocery chains have a policy called the Scanner Price Accuracy Voluntary Code. Here is the Competition Bureau's definition: “If the scanned price of a non-price ticketed item is higher than the shelf price or any other displayed price, the customer is entitled to receive the item free, up to a $10 maximum. When the item has a price tagged, the lowest price applies. When identical items are incorrectly priced, the second one will be sold at the correct price.”*
Save Money on Your Energy Bill:
- If you are heating with electricity (or have more than one zone), turn the thermostat down in rooms not being used.
- Even if you are leaving the room for 1/2 hour, turn it down a few degrees. When doing laundry, do a full load and use the W/C setting. Also, adjust the water level accordingly. Put them through the spin cycle at least 2 times to get the water off of them. It will make it much quicker to dry. Getting the extra water and moisture off your clothes will save you money not having to dry them for as long. This in turn will save you money with your biggest energy guzzler - the dryer! Better yet, hang your clothes on the clothes line.
- Fill plastic pop bottles 4/5 of the way with water and put them in your deep freezer to keep it cold. You can add bottles or take them out as necessary. Turn lights off in the rooms you aren't using.
- Open curtains on sunny days in the winter to capitalize on the solar gains. Conversely, close curtains on sunny days in the summer.
- Seal any air leaks around your home and replace worn out weatherstripping and doorsweeps.
- Warm air rises and can escape through your attic. Use painter's tape to seal around the attic hatch/opening.
- Make sure there is adequate insulation in the attic. Make sure attic doors/hatches are properly sealed for the cold winter months.
- Replace old windows.
- Have storm doors installed.
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Borrow books and DVD's from the library for free.
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Have a meal at home and then go out for dessert.
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Invite friends over and have a potluck instead of going out.
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Go for a walk in the park or waterfront or watch the sunset.
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Take a can of pop to the movie theatre instead of buying it there.
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Invite friends over to play cards.
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Use coupons.
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Drink pop instead of alcohol.
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Attend functions at your local church. Church functions are normally less expensive than other social outings.
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Nature is free. Get out and enjoy the great outdoors.
ref:
*Competition Bureau of Canada
External Links:
Save money by selling your home privately