Christopher Liew is a CFP®, CFA Charterholder and former financial advisor. He writes personal finance tips for thousands of daily Canadian readers at Blueprint Financial.
Even if we’re not always the best at practising, most of us understand the basic principles of managing our money: Create a budget, set some of our money aside, and avoid unnecessary debt. Beyond the basics, though, a plethora of lesser-known “hacks” exist that can make your financial life easier and help you stretch your dollars further.
Below, I’ll share some of my favourite practical, out-of-the-box ideas to help you hack your personal finances, cut costs, stay organized, and keep more money in your pocket.
Tips to hack your personal finance game
As consumer debt continues to increase and many Canadians are finding it more difficult to set money aside for retirement, it’s more important than ever to implement financial hacks into your daily life that will allow you to set more money aside and lower your everyday cost of living.
These simple hacks will help you reach your financial goals quicker and avoid costly setbacks.
1. Use the r/BuyItForLife subreddit for quality purchases
One of the easiest ways to save money long-term is to invest a little extra money upfront for high-quality products. This will help you break the cycle of constantly having to replace cheap products.
Think of it as “cost per use” rather than sticker price: The longer something lasts, the cheaper it becomes in the long run.
The subreddit r/BuyItForLife is a community dedicated to reviewing and recommending everyday items that will serve you for life. From cookware and furniture to clothing, tools, sports gear, and electronics, this forum is great for finding products that won’t leave you disappointed.
2. Call to negotiate your bills
Most people don’t realize that many recurring bills are negotiable. Phone and internet providers often have retention offers to keep customers from switching to other companies.
Banks and credit card companies may also be willing to lower your interest rate or match a competitor’s mortgage rate. Insurance premiums are another area where a quick call can result in instant savings.
The key here is preparation. Research competitors beforehand, know your customer history (loyalty counts), and be polite but persistent. Even a 10 to 15 per cent discount on a $100 monthly bill adds up to over $100 in savings per year.
3. Buy your meat (and dry goods) in bulk
Buying in bulk from wholesalers like Costco is a great way to save on groceries and household items, especially when it comes to meat, dry goods, and cleaning supplies.
You can save anywhere from 10 to 20 per cent on groceries by buying bulk meat, toilet paper, beans, rice, and even laundry detergent in large amounts. If you have roommates, this is also a great way to split expenses amongst yourselves.
4. Track your spending with budgeting apps
Getting started with a budgeting app is a great way to give yourself a financial restart. Apps like KOHO or You Need A Budget (YNAB) allow you to link your credit and debit cards to help you categorize and manage your everyday spending.
This will give you a comprehensive overview of where your money goes, so you can make adjustments that will allow you to start setting extra money aside.
5. Open a high-interest savings account
The traditional savings accounts offered by most major banks will only give you a fraction of a per cent back in interest, which really won’t make a difference in your finances unless you have tens of thousands of dollars saved.
However, some smaller banks and credit unions offer special high-interest savings accounts that allow you to earn anywhere from 1 to 3 per cent APY on the money you have saved. This is one of these best places to store your emergency funds. For up-to-date rates, I like to check this chart.
6. Buy an espresso machine
Over 80 per cent of adults in North America regularly consume caffeine. For many, that means a $5 beverage from Starbucks or your local cafe. Over the course of a month, your daily latte could be costing you upwards of $150 per month or more.
You can purchase a brand-new home espresso machine for less than $400 (or save more by purchasing something used from Facebook Marketplace or Kijiji).
From there, all you need to do is purchase some espresso beans, a coffee grinder, and some flavoured syrups and/or milk to make your own coffee at home. Making your own latte or cappuccino at home typically costs less than $1 and only takes a few minutes.
Over the course of a year, making your own coffee at home could literally save you thousands.
7. Buy clothes during quarterly sales
At the end of each quarter (or season), most clothing retailers run massive sales to clear out their old inventory and make room for the next season’s styles.
You’ll also find amazing deals on clothing, tools, and electronics in the days after Christmas and during annual sales like Black Friday or Cyber Monday. Planning your clothing purchases during these end-of-quarter sales can help you save hundreds of dollars per year.
Final thoughts
Once you turn budgeting into a lifestyle, making smart, money-saving choices every day becomes easy. With a little bit of practice, you’ll never have to think about it, and budgeting will come to you like second nature.
By incorporating some of the personal finance hacks I mentioned above, you can save thousands of dollars per year - money that can then be invested into your retirement fund, used to help you start a business, or buy your kids holiday gifts.
At the end of the day, it’s all just a game composed of small daily choices. Except with this game, you’re rewarded with real money.
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