Saving money is something everyone needs to focus on. It’s impossible to predict emergencies, accidents and other big life changes.
First, it's important to know that saving money is a combination of two core ingredients -- the amount of money you make and the amount of money you spend. You can begin to save more money by:
(a) routinely reviewing your expenses to see where you may be spending money you don't need to so you can cease unnecessary expenditures
(b) categorizing your expenses based on whether they are a "want" or a "need" and using that information to live within your means
(c) cutting up your tempting credit cards so you can only spend money you actually have
(d) calculating any purchases you expect to have to make through the week and only carrying enough cash on you for those things to help you avoid impulse purchases
(e) setting aside at least 10% of all of your earnings for savings
(f) doing automatic money transfers so part of your paycheck goes straight into a secondary savings account, TFSA or RRSP, which can be a useful "out of sight, out of mind" approach while you live off of the savings in your primary account
Contrary to popular perceptions, saving money isn't just about "penny-pinching". It's about being smart with your money and using tools that are available to you, like a Tax-Free Savings Account or a Registered Retirement Savings Plan. Between these tools, monthly budgeting, investing and working with a financial planner, you will be on track for financial prosperity. In fact, statistics show that those who work with a financial planner end up with an average of 3.9 times the assets than those who don't.
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