Personal Finance

• Save on Shoes with a Shoe Stockpile

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  Stockpile Shoes to Save Money.

  

  As a mother of 4 boys, one of my best money saving tips is to buy ahead (if you have the room to store extra items). One item you don’t want to have to scramble to purchase is footwear. Chances are, it will be difficult to find the right size at the right time in the right style, and you may even have to pay… full price [insert horrified gasp].

  Before I learned how to save on shoes, you could hear statements like this in our house:

  • “Mom, those running shoes that fit me perfectly yesterday, are giving me blisters today.”
  • “Help – I lost my indoor shoes at school and if I don’t bring a new pair by tomorrow I will have detention.”
  • “I am pretty sure we should put away my sandals – they are calling for snow today.”

  Somehow those little feet just keep growing, and the seasons keep changing. What’s a parent to do? In my experience, one of the best ways to save on shoes is with a shoe stockpile. Here’s how to build one:

  Shop the Sales

  I have had the most luck shopping at Payless Shoe Source. They have almost paid me to take shoes out of their store (yes, really!). If you pop in to Payless regularly, you will find fabulous sales. Shoes that are $34.99 or $29.99 will be reduced to $16 then eventually $11 or less.

  Also, if a Payless store does not have your size, the cashier will give you a list of locations nearby stores do have them, plus give you a $6 coupon towards each pair of shoes. That means that you will get the $11 shoes for $5. I recently saw a pair that I liked for $11. I requested multiple sizes of the same pair. One nearby store had the sizes 2, 3.5 and 5 that I needed – so I got 3 pairs of shoes for $15 (a savings of over 85%)!

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  Store Shoes Neatly

  To really save on shoes, you need to take care of the ones you currently own. And of course, that means you must be able to actually see your stockpile of shoes.

  • For running shoes, I use a bookshelf in our basement for easy access, sorted by size.
  • For off-season shoes, I use an under-bed storage container.

  Be Ruthless

  If your children don’t end up using a particular pair of shoes, share with a friend, sell them on Kijiji, or return them to the store, if possible. Payless Shoe Source offers a full refund with no time limit (keep the receipt tucked inside the shoe just in case). Or, in my case, keep having children – eventually someone will use each pair.

  Freshen Up

  Have on hand at least one pair of laces in each basic colour. A fresh pair of laces can give a slightly worn pair of shoes a quick face-lift. You can buy these anywhere that they sell footwear. I have seen them at Dollarama as well, but the quality isn’t as great as a shoe store.

  Hold Your Head High

  Be proud that you can easily dispose of old shoes, and replace them with the next size up, without even leaving your house, because you have learned to stockpile shoes.

  

  Over the past few years, stockpiling footwear has resulted in significant savings for our family. I highly recommend that you watch for great deals on basic footwear you know your kids will eventually use.

  Remember that school-aged children need both indoor and outdoor running shoes, so a few pairs of the same size is justified. When that next shoe crisis ensues, you will be glad that you learned how to save on shoes so that you don’t have to go out and pay full price for new footwear.

  How do you save money on shoes?

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• Saving Money on Home Insurance – 12 Ways to Save

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  Saving Money on Home Insurance.

  

  Saving money on home insurance seems like an impossible task, but I promise you, it can be done! A large portion of a household’s income is used to purchase insurance. If you are like me, you resent it. Insurance is one of those things that we all need and I grimace every time I review my bank statement and see my monthly premium payments.

  I would much rather spend the money on things I don’t really need, like that sequined dress I can only wear on New Years Eve. Now THAT would be a fun purchase.

  Insurance purchasing is unquestionably NOT a fun purchase. Well, let’s not spend more than we have to, shall we? Here are my recommendations for saving money on home insurance. Most discounts apply only to homeowners, but some can be applied to condo, tenants, and secondary residence (cottage) policies.

  You may already have a lot of these discounts, as most are automatic, but some you can only get by asking for them.

  Check your policy as the discounts are usually listed. Also, keep in mind that the type and amount of discount will vary between insurers.

  Alarm Systems

  If you have any type of burglary or fire alarm (except for the battery operated smoke alarm stuck on the ceiling type), you can usually get a discount from 5 to 20 percent depending on how many bells and whistles it has. You will have to provide proof in the form of an alarm certificate provided by your installer or monitoring company.

  Claims Free

  This discount is usually automatic, but check for it if you are at least three years claims free. Discounts can vary from 5 to 20 percent.

  Mortgage Free

  This is another reward for paying off that mortgage earlier! You will earn a discount of 5 and 10 percent. Insurers figure that if you own your home outright, you are less likely to burn it down when you are flat broke and can’t make your mortgage payments anymore.

  Secured lines of credit can sometimes qualify, so check this one out if you have financed your home but it is not through a traditional mortgage.

  Mature Owner

  This discount can be offered to anyone from 40 and up, but it varies between insurers and is usually between a 5 and 20 percent discount. Your insurer will require the dates of birth for those that are on the.

  Interesting Fact: Did you know that this discount used to be called “old person’s discount” before it was changed to “mature owner’s discount”?

  

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  Fire Hall Pumper Certification

  If you live in a rural area (also good for secondary residences, such as cottages) your responding fire hall may have qualified for a special status, meaning they are able to respond to fires very quickly and with enough access to water. Some insurance companies reward those living in the response areas of these fire halls.

  Inquire with your fire hall and if they have passed the tests required for this certification, you may qualify for a better insurance premium. Check with your agent/broker for what is required to prove your fire hall qualifies for special certification.

  Multi-Line

  If you carry home and auto insurance with one insurer, you should be getting a 5 to 20 percent discount.

  Loyalty

  This discount generally gets added on when you have been with the same insurance company for 5 years or more. It is usually from 5 to 10 percent.

  Non-Smoker

  If there are no smokers in your household, you can usually save an extra 5% off your insurance. You may have to sign a form to verify this status.

  Group Rates

  Check at work or your professional association to see if they have any arrangements with an insurer to provide a special rate for employees/members.

  

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  Sump Pump/Sewer Back-Up Preventative Measures

  Insurance companies have been paying out in a major way for water damage claims in recent years due to aging city pipes, so some insurers will reward those that take measures to prevent this from happening.

  If you have one of those fancy alarms that tells you that your sump pump is failing, or have installed some other type of water damage preventative, let your agent/broker know as this could save you some money.

  Increase Your Deductible

  Get quotes on different deductible levels. The savings can be quite substantial. Determine how much you could afford to pay out of pocket if something happened, and keep this in mind before changing your deductible. You don’t want to put yourself under more stress if you have to make a claim.

  Home Upgrades

  You may qualify for a better rate if you have recently updated or replaced major systems in your home such as furnace, roofing, electrical system, and plumbing.

  It is my experience as an insurance broker for 23 years, that property rates have a bit of play (unlike auto insurance rates, which are heavily regulated). If you have been with the same insurer for many years and have been claims free, most will fight to keep you if you have found a better premium elsewhere.

  If you are one to call up every week with a complaint, you will be told to “jump at that better rate elsewhere sir/madam”. Yes, I have uttered that phrase more times than I can count. Sometimes there really is nothing else that can be done.

  Keep in mind that when it comes to insurance that you do get what you pay for. All policies are not created equal, contrary to popular opinion. The best premium offered may indicate an insurer that will nickel and dime you when it comes to claims time.

  How do you save money on home insurance?

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• 5 Reasons You Suck at Saving Money

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  Saving Money!

  

  I am going to say something that is probably going to hurt your feelings. I’m sorry in advance. But guess what? You suck at saving money.

  Sometimes I feel as though tough love is the only answer, and when it comes to financial issues, tough love is almost always the answer. So I’m here to offer you some tough love. Please don’t be upset. I’m your friend, and I just want to help.

  Here are 5 reasons you suck at saving money:

  1. You “deserve it”

  Yes, you do work hard, and yes, of course you deserve to have nice things. But, if having nice things now means that you have a poor financial future, then you are just being childish.

  There are only 4 things in life you actually need: food, water, shelter and clothing. Everything else is extra. Everything else is unnecessary (nice to have, but unnecessary).

  Get over the fact that although you may deserve the extra things you want, you may not be able to afford them right now. Therefore, you cannot have those things until you are actually able to pay for them.

  2. You don’t have a budget

  I’ve said it before and I’ll say it again: creating a monthly budget is one of the best things you can do for your financial future. If you don’t have one, you’re likely throwing money away, which means you are unable to save (or, at least, you aren’t able to save very much).

  A budget doesn’t have to be complicated. Figure out your what your fixed expenses cost you, set aside at least 10% of your income for savings, and distribute the rest any way you want. Make sure that your savings is treated as a fixed expense. You should always pay yourself first.

  3. You live in the moment

  There is absolutely nothing wrong with being spontaneous, unless it is interfering with your finances in a negative way. If going out to the bar is important to you, you need to save up money before you can go. If you are at the mall and come across a pair of jeans that you just have to have, you’d better have the money to pay for them.

  Give yourself an allowance. I know it sounds totally lame, but they are actually very helpful when it comes to impulse purchases. My husband and I each have a monthly allowance of $50 each (yours may be more or less, it depends on your finances) that we can spend on anything we want. I often spend mine on impulse purchases, such as clothing or fancy snacks. If you don’t spend all of your allowance one month, carry it over to the next month.

  4. You don’t make enough money

  I told you this article was going to be all about tough love, and some tough love that you may have to accept is that it’s possible you don’t make enough money – and that could be part of the reason you suck at saving.

  Figure out exactly what your income is (the amount of money you actually take home) and then figure out what your monthly expenses are. If you are barely making enough to cover your expenses, or you are spending more than you make, you need to cut back on your expenses and you likely need to make more money.

  5. You don’t make saving automatic

  Never let your entire paycheque hit your chequing account. Ever. Set up an automatic transfer that will send money over to a savings account as soon as you are paid. Doing this means that you never see the savings go into your account, which means you don’t spend it. It doesn’t get much easier than that.

  It doesn’t matter how much money you save, as long as you’re saving something. Start out with just a few dollars per month, then bump it up to $20, then $50, then $100, then $200… you get the idea.

  Keep in mind that the older you are, the more you will need to be saving so that you have enough money to retire comfortably.

  Just because you suck at saving money right now, doesn’t mean you can’t change your habits and become a money saving pro.

  Don’t get discouraged, you can do it, and I will be standing right beside you cheering you on.

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• How to Buy a House – Lessons Learned From a First Time Home Buyer

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  How to Buy a House.

  

  How to buy a house is something I am often asked about now that my husband and I are homeowners.

  When we started looking for a home last summer, we learned a few things. The first thing, which is so obvious now, but wasn’t at the time: buying a home is not easy.

  You don’t just check out a house or two, love one of them enough to buy it, can afford the price tag, can find zero problems with the property, and move into your new home within weeks. That is not how it works at all.

  1. Find a good realtor

  My husband and I planned to buy a home on our own. We thought it would be a waste of time to look for a realtor to represent us, because we’d heard so many horror stories from friends about realtors that didn’t do what they’d promised.

  We looked at listings online and found a home we were very much interested in, so we contacted who we thought was the seller. It turned out to be the sellers real estate agent. We set up an appointment to see the home and although we didn’t end up purchasing it, we did keep the agent.

  Kirby Chan took us to multiple homes, found the perfect one (for us), and helped us to negotiate the cost of the home we now own. If it wasn’t for him, I have no doubt that we would still be living in our rental.

  2. Shop around

  With any major purchase, you always want to look around at everything that is available. You need to be able to compare things and determine what it is you truly want and need in a home.

  Always visit multiple homes when you’re looking to buy. Never visit one home and put in a bid right away, otherwise, you could possibly miss a golden opportunity to buy a better home for a better price.

  I don’t care how many homes you visit – just visit more than one.

  

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  3. Always sleep on it

  There was one home that we looked at that I loved so much, I wanted to call the sellers right away and offer them all of our money. My husband talked me out of this, of course, and said we needed to sleep on it because it was a huge purchase.

  We had to make sure that we were certain we wanted to pay the hefty price tag for the home.

  It’s a good thing he is so rational, because after sleeping on it, we decided that the home was not right for us after all.

  4. Research the area

  One very important thing we learned about how to buy a house was to research the area very well. The first home we wanted to buy was perfect – until we did our research and found out how high the crime rate was in that area.

  We fell in love with that house and it was extremely difficult to walk away, but we knew we had to. From that moment on, we vowed to research areas before we viewed any homes.

  We found a bunch of areas we liked, told our realtor, and he found us homes to look at in those areas. When he sent us the lists of homes, we did even more in-depth research on those particular neighbourhoods.

  Before bidding on a home, always check the school ratings, crime rate in the area (we used the Toronto crime rate page) and the demographics of others in the area (if you are a young family, you will likely want to live in an area with other young families).

  5. Never judge the decor in a home

  I know, black paint is not the most inviting. Neither is lime green or bright pink with yellow polka-dots. But guess what – that is an easy thing to change when you move in.

  Pay no attention to the small cosmetic “problems” you see in homes and instead, focus on the bigger picture. Does the home have a good layout, lots of natural light, enough bedrooms to accommodate your needs? Those are the things you want to look for when shopping for a home.

  Ignore paint colours, carpeting, cabinet hardware and what someone’s shower curtain looks like (seriously, I saw someone complain about the colour of a shower curtain on a home buying TV show!).

  

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  6. Be patient

  I thought I was prepared for a very long process when we started looking for a home, but I wasn’t. I wanted to move so badly that looking for a home started to take over my life. I wanted to look at homes all the time. It eventually got to the point that I would want to bid on a home just so we could “get it over with already”.

  I was impatient and very unprepared for the emotional roller coaster that a home search brings.

  If there’s just one thing you take from this article, let it be this: be patient. Don’t give up hope that you will eventually find the home you’re searching for. With time, you will.

  Buying a home is no easy task. It takes time (lots of it) and perseverance. You also need to accept that you will not be able to get every single thing you want in a home. You will need to compromise. Quite a bit, actually.

  If home ownership is your goal, you need to mentally prepare yourself for the ups and downs that come along with house hunting. They’re inevitable, but nine times out of ten, they’re worth it.

  What lessons did you learn when buying a home?

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• How to Budget – Use a Budget Binder

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  Make a Budget Binder for Budgeting.

  

  Do you want to learn how to budget? January is the perfect time to start budgeting and tracking spending for the coming year.

  This post addresses organizing the paper trail to track your spending, rather than the budgeting process itself. The budget binder has worked well for our family for the past few years because of its simplicity. I hope it works for you as well.

  Benefits of using a budget binder

  • Provides one central location for all financial documents
  • Quickly find receipts – if an item is defective, goes lower in price (bring in your receipt to get a price adjustment) or if you decide to return something
  • Easily track spending all year and avoid money “slipping away”, unaccounted for
  • Tax time is a breeze with each receipt/expense already categorized.

  How we use our budget binder

  First, we decided how to allocate our spending. We tracked our spending for a few months to create a realistic budget. I created a spreadsheet to balance our income with our fixed and variable expenses.

  Fixed expenses include mortgage payments, property tax, utilities, insurance (car/house/life) and savings (RRSP, RESP). These items tend to remain consistent throughout the year.

  Variable expenses include spending that we have more control over – and can increase or reduce as we see fit, such as groceries, clothing and entertainment. This article focuses primarily on tracking my family’s variable expenses, including:

  • Vehicle – Gasoline, Oil Changes
  • Entertainment – Coffee, Drive-thru Snacks, Dinner Out, Movies, Music Purchases
  • Fun – An Allowance for the Adults, Guilt-Free Spending, Books, DVD Purchases
  • Groceries – Food, Cleaners
  • Health/Personal – Supplements, Prescriptions, Haircuts, Drugstore Items
  • Household – Home Maintenance Items, Small Household Purchases
  • Kids – Baby Supplies, School Expenses, Clothing, Outings, Babysitter
  • Miscellaneous/Gifts – All Gifts for the Year and other Miscellaneous Items

  Note: I also have a category called Income Tax for filing all receipts for charitable donations and child fitness tax credits.

  Our budgeting system has three components:

  1. Budget Binder – Holds sheets to track spending
  2. Dividers with Pockets – One for each category of variable expense (holds receipts for the current month)
  3. Accordion File – Holds receipts and bills for the entire calendar year, for both fixed expenses and variable expenses

  Note: If you choose to use a program or app for tracking spending, the budget binder can still help organize receipts.

  We record what everything that we purchase. We try to do this step every day. It is our version of the infamous “cash jars” (thanks, Gail Vaz-Oxlade!), without using jars (or cash, actually!). We prefer using our no-fee debit cards, instead of carrying cash around.

  How to use a budget binder

  Record all purchases in the proper category.

  

  Tuck the receipt in the pocketed divider.

  

  Subtract that purchase from the monthly total so you know how much is still available to spend. It is critical to keep this form current. Also, all spenders in the household should look at the updated totals before making further purchases.

  

  We discard any receipts that are not needed, and put the rest in an accordion file. This is also when we reflect on our spending for the month and make any necessary adjustments moving forward.

  

  Establishing a simple accounting/storage system and using a budget binder has been a valuable tool for our family. We have a greater sense of control over our spending because of the way we have organized our finances. This frees us up to focus on important short-term and long-term financial goals.

  Be sure to read Cassie’s article on also saving regularly into a yearly expenses savings account for items that aren’t regular expenses — it is a critical step to enable you to keep this regular budget balanced.

  Do you use a budget binder? How do you keep track of expenses?

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• 6 Ways to Save Money on Moving Expenses

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  Save Money on Moving Expenses.

  

  Are you moving soon? Scared of how much your moving expenses are going to be?

  Moving expenses can be a big chunk of your relocation cost, but thankfully, there are many ways that you can save on these costs. Here are 7 of them.

  1. Purge, purge, purge

  Of course, the less you have to move, the less expensive your moving costs are going to be. Therefore, it’s very important that you go through every single item in your home and get rid of everything you no longer wish to keep. Be ruthless. If you haven’t touched it in over a year, you probably won’t touch it again. Let it go.

  Sell as much as you can (this will pay for your moving expenses!), but don’t hold on to those items for very long. If they don’t sell in a few weeks, donate them.

  2. Move during off-season

  Moving companies and truck rental services are often extremely busy during the summer months, since most families tend to move when children are on summer vacation. High demand for trucks means high prices for you, so if you can, move during the fall and winter (spring is okay, too, but not as inexpensive as fall and winter).

  If possible, it’s also a really good idea to move on a weekday, since most people want to move on the weekend. If you can move on a weekday, you are more likely to get a moving truck – and a discount.

  3. Pack everything yourself

  Paying to have someone else pack up your stuff is going to cost you quite a bit of money. On top of that, it’s risky to let strangers go through everything in your home. Do yourself a favour and pack your belongings yourself. Enlist help from friends and family if you need it.

  Don’t pay for boxes either. You can always find free moving boxes. Ask your local grocery stores and check online classifieds to see if they have any boxes that you can take off their hands. Buying boxes from a store or a moving company is never a good idea if you are trying to save money on moving expenses.

  4. Use what you have instead of buying packing materials

  Bubble wrap is expensive. Instead of spending money on this costly stuff, wrap your fragile items with things that you already have at home – things that need to get packed up themselves anyway.

  Clothing, towels and blankets make the perfect packing materials – and they’re free!

  5. Move yourself

  Instead of hiring a moving company, rent a moving truck and do the moving yourself (bonus points if you already have your own truck, or can borrow one for free!). Ask your family and friends if they can help and offer them a free dinner when everything is done (inexpensive pizza, of course).

  Do your research before renting a moving truck, as not all companies are created equal. Check prices and references for as many moving truck companies as you can find (in my own experience, I have found U-Haul to be the best, but your experience may vary).

  6. Keep track of your moving expenses

  If you have moved to a new home to carry on your own business or to be employed, you can deduct eligible moving expenses from the employment or self-employment income you earn at your new location.

  If you moved to study courses as a student in full-time attendance at a university, college or other educational institution that offers courses at a post-secondary level, you may also qualify to claim eligible moving expenses.

  Visit the CRA website for more information.

  Moving doesn’t have to be costly. You just have to be a bit resourceful and it is definitely possible to slash your moving expenses. These money-saving tips are just an example of a few ways that you can save. I’m sure there are plenty more tips and tricks that will keep your moving costs low.

  How do you save money on moving costs?

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• Random Expenses You Should Budget For

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  Random Expenses to Budget For.

  

  Do you have a yearly expenses account for budgeting purposes? Or do you find yourself running into “unexpected” expenses all the time, with no way to pay for them?

  It’s possible to stop those random expenses from creeping up on you – all in the form of something I like to call a yearly expenses savings account.

  What is a savings account?

  A yearly expenses savings account is an easy way to put money away for those expenses that don’t happen every month, but rather, every other month, every few months, or every year.

  You must come up with a list of expenses that happen over the course of 1 year, add up their costs, and set aside that money to use throughout the year as those expenses present themselves.

  Instead of just having a pile of money set aside for these random expenses, you need to know what all of that money is for. You need to have a cost determined for each individual expenses in that yearly expenses account.

  What are your yearly expenses?

  Sit down and go over every single expenses that might come up in a year. Think about those irregular expenses that you have been faced with recently, and write them all down. Even if you don’t know what month those expenses will occur, or what the exact cost will be, at least write them down.

  Some things you may consider including are

  • Birthday gifts
  • Christmas gifts, food, decor and entertainment
  • Hair cuts
  • Oil changes for your vehicle
  • Pet vaccines, special medications, special pet food
  • Prescriptions
  • Automobile and Home Insurance
  • Dentist Visits

  
  Of course, your list may include other things and will likely not include all of the examples above. Think very carefully about the expenses you incur each year and add them to this list.

  How much to budget for each expense

  This step will come with a bit of trial and error. You will have to make an estimate for most things on your list, so to be safe, always go with the higher estimate. That way you will be more likely to stay on budget. If the cost ends up being much less than what you thought, you can lower that amount for next year.

  When it comes to things like birthday gifts, you will need to make another list with the people you will likely have to purchase gifts for. Determine a budgeted amount for each person, add those numbers up, and that is your budget for birthday gifts for the year.

  Do the same thing for Christmas gifts.

  Some things will likely be the same price each year, such as oil changes, insurance and pet vaccines. Double check what those prices will be, and put those numbers on your yearly expenses list.

  Setting up your account

  I have written about yearly expenses accounts before, and a question I am often asked about them is about where you should keep your savings.

  My personal recommendation is ING Direct for a few reasons.

  1. They offer a higher interest amount than most banks do
  2. You usually have to wait 24-48 business hours to get your money (this is a good thing – you don’t want the money to be too accessible, otherwise you might spend it on things other than those in your yearly expenses account)

  How to start saving money

  Once you have written out your yearly expenses and their costs, you must add all of those costs up to come up with a yearly total.

  Divide that yearly total by 12 and that’s how much money you must be setting aside each month. To make things easier on yourself, set up an automatic withdrawal with your bank to have that monthly amount deposited into your yearly expenses account each month.

  As you incur each expense, you can take the money from your yearly expenses account and put it back into your chequing account. Alternatively, you can pay for each expense directly from that yearly expenses account. The choice is yours.

  It’s important to have this yearly expenses account for budgeting. Running into those random expenses always seems to happen at the worst possible time, doesn’t it? That is why a yearly expenses savings account is so important.

  If you don’t want to have a separate account for this spending, that’s fine. As long as you are disciplined enough with your money that you can keep it in your chequing account and not spend it on anything except those random expenses (that you have budgeted for), this money can be saved anywhere you want.

  The most important thing is to keep these annual costs in mind when creating your budget. Don’t ignore them and assume you will figure something out when those expenses pop up. Instead, have a plan in place for paying these expenses easily.

  Do you have a yearly expenses account? What do you budget for?

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• Saving for a Home – How We Did It

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  Saving for a home.

  

  Saving for a home was a goal my family set about 3 and a half years ago. We wanted to buy a home that was our own so that we could customize it to our liking and make it the most efficient home possible. We didn’t want to spend money updating and customizing a rental, because we wouldn’t be able to take those customizations with us when we eventually moved.

  Once we paid off all of our consumer debt, we began saving for a home. It was hard, but it was worth it.

  Come up with a plan

  Before we did anything, we came up with a plan for saving for a home. We wanted to make sure we had a minimum of a 20% down-payment, and we also wanted to have money for all closing costs and new furniture we may need to purchase (we didn’t know if we would have to replace any appliances, so wanted to be prepared for that just in case – and if we didn’t have to, we would use that money to buy other furniture such as a couch, dining set, etc.).

  We decided that we wanted to save enough money for a home within 3-4 years. Our real goal was 3 years, but we wanted to be realistic and be prepared if we couldn’t save up fast enough to meet that goal. We weren’t big on setting huge goals back then (we are now, though!).

  Create a house fund

  I’m a huge fan of having multiple savings accounts for multiple goals. I find it much easier to organize my savings that way and not confuse how much money I have for certain things.

  Of course, this meant that when we started saving for a home, we had to create an account for our house savings.

  At that point, we had the following savings accounts:

  • Yearly Expenses
  • Emergency Fund
  • House Fund

  At the end of each month, all of our extra money would go into the house fund.

  Set up automatic withdrawals

  Just like saving for retirement, we treated our house savings as a regular monthly bill in order to avoid not depositing money each month.

  We set up an automatic withdrawal at the bank so that every month a certain amount of money would be taken from our chequing account and deposited into our house fund.

  Cut back on spending

  This was very obvious for us to start doing immediately. To save more money, we first needed to cut back on the money we were currently spending.

  • We cut our personal monthly allowances in half
  • We only went out to eat about once per month
  • We started clipping more coupons
  • We bought used as much as possible
  • We scaled back on entertainment

  These are just some of the things that we did to cut back on spending. Other things we could have done was cancel cable, get rid of our home phone, borrow instead of buy, and been more mindful of electricity and water usage.

  Make more money

  Of course, one of the best ways to save money is to make more money to save. So, that’s what we did as well. We tried many things to make extra money to put into our house fund.

  • We sold as much as we could (furniture, clothing, housewares)
  • We took on odd jobs
  • We bought stuff at great prices and re-sold it on Ebay, Craigslist and Kijiji
  • We did online surveys
  • I did some freelance writing
  • I even started baking and selling cupcakes (which was huge for me during wedding season)

  If there were more hours in the day, we could have worked more and done many more things to make extra money, but we did what we could with the time we had.

  All extra money into the house fund

  Whenever we received extra money (birthdays, holidays, bonuses at work, tax refunds), we took a bit of that money (usually about 10%) and splurged on whatever we wanted, and the rest went right into our house fund.

  We made sure to always allow ourselves to splurge a little here and there, to avoid burning out. In the past, we learned that when we cut the fun out of life in an effort to pay off debt and save money, we became very unhappy. We wanted to avoid that this time, so not only did we include entertainment in our monthly budget (even though it was just a small amount), we also splurged occasionally.

  Become more frugal

  We really had to change how we were living to be able to save quite a bit of money in just a few years. Although we were already frugal, we had to take frugal living to a whole new level. We had to become super frugal!

  • We did much more cooking from scratch
  • We became huge advocates for menu planning
  • Most of our entertainment was at home, for free
  • When we did go out, we would use coupons and special promotions to save money
  • We re-used everything possible

  We did many frugal things to save for a home. Frugal things that we actually enjoyed so much that we still continue to do them today.

  A few other things we did to save for a home

  On top of spending less and making more money, we also did some other things to help us with our home buying adventure.

  Put savings into tax-free savings accounts

  My husband and I both put the maximum $5,000 into our tax-free savings account (TFSA) each year. This allowed us to save that money and not have to pay any taxes on it at all.

  Borrow from retirement savings

  The first time home buyer’s plan allowed us to withdraw up to $50,000 tax-free from our registered retirement savings plans (spousal RRSP). We will have to pay this back in the next 15 years – which I know will not be an issue (it will likely be paid off much sooner).

  After just over 3 years of saving money for a home, we made our purchase. We had our 20% down-payment, all of our closing costs and a bunch of money left over to spend on new furniture. We also had money to turn our basement from a big black hole, into an office, playroom and storage area (we even had a bathroom built down there!).

  It was because we had a goal, made a plan and worked extremely hard, that we were able to purchase our home. Although at times it was very hard and we wanted to give up, we kept pushing forward. We knew that in the end it would all be worth it.

  And it was.

  How did you save for your home purchase?

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• Tax-Free Savings Account Limit Raised to $5,500

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  The annual tax-free savings account (TFSA) annual dollar limit has been raised to $5,500 per person, instead of the usual $5,000. You can also contribute any unused contribution room from the previous year and the amount you withdrew the year before.

  This means that you can save $5,500 this year and not have to pay any taxes on your deposits or withdrawals.

  Note: You must be 18 and older to have a tax-free savings account.

  Click here for more information on Canadian tax-free savings accounts.

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• 6 Weeks to a Lower Grocery Bill

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  Lower your grocery bill in 6 Weeks!

  

  How to lower grocery bills, is a question that I am often asked. Instead of answering this question each time I receive it, I thought it would be a good idea to share with you a bunch of things that you can do to lower your grocery bill.

  For the next 6 weeks, I am going to share tips and ideas on how you can reduce your grocery bills and save money at the same time. Here’s what you can expect in this new series 6 Weeks to a Lower Grocery Bill.

  Week One: How and why to create a grocery budget.
  Week Two: How and why to create a grocery price book.
  Week Three: How to create and shop with a grocery shopping list.
  Week Four: How and why to create a grocery stockpile.
  Week Five: How to save by shopping in season & locally.
  Week Six: Why & how you should create weekly menu plans.

  We’re going to start this series today, so watch for the post about grocery budgets later this afternoon (I promise it won’t be boring!).

  Is there anything you would like me cover in this series?

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