If those come to a grand total of, say, $1,880.00 a month, then make sure you transfer that to the second account you set up just for bills. So for example, add up your recurring expenses like: The other account is for your day-to-day discretionary spending, like your morning coffee habit, brunch with the girls, or date night at the movies.Īdd up those total fixed monthly expenses and move that money to a separate account that you never touch. One account is for all your recurring monthly bills like rent, cell phone, car payment, etc. Two accounts will allow you to compartmentalize your spending so that you don’t accidentally overspend on wing night with the guys right before your car insurance is due. If you think multiple accounts will make tracking and budgeting more complicated, think again. Consider opening another chequing account. If you’re not careful, you can be caught in that paycheque to paycheque trap. Many of us are faithfully putting in our 40 hours a week (or more), but somehow keep coming up short between paydays. It’ll also helps you to regain and take control of spending in areas you didn’t realize you were overspending, like your morning double doubles or eating out. Stop the leaks in your budget by cancelling subscriptions and downgrading services like cable or your cell phone plan. If you’re not careful, next thing you know you’ve signed up for 11 monthly subscription services costing you a whopping $150 a month! Without tracking, you might not notice $10 here or $20 there.Ī tracking app will show you how much of your monthly income is being spent in different categories. What about all your monthly subscriptions? There’s literally a subscription service for everything these days. That $2 Double Double you grab on the way to work every morning will cost you over $520 a year. The app analyzes your spending behaviour so you can see where you tend to spend the most and how much. With budgeting apps like Hardbacon, you can easily track all the money coming in and where it’s going. This method of budgeting helps uncover spending inefficiencies so you can maximize your savings 2. If you have surplus money, then allocate it somewhere like your emergency savings account or towards that new laptop you need for school. Ideally, you want every dollar accounted for so that you have 0 miscellaneous dollars left over at the end of the month. You can set spending categories for pretty much all the things. Not sure how to set up a budget? Download the Hardbacon app and use the Zero Based Budgeting method to give every penny a purpose. Better yet, check out your local Buy Nothing Facebook groups before trekking down to Canadian Tire to swipe your plastic. Whenever possible, look for deals, discounts and flash sales. Plan ahead for expenses like clothes, car repairs, groceries and even Christmas shopping. Spontaneous spending is not an option, at least not for things you don’t need. But in order to do that, you need to budget. Maintaining a positive cash flow will significantly reduce the need for credit. If you want to live without credit cards, then remember this: it’s not how much money you make, it’s how you manage it. Here are our top 9 tips to help you live without a credit card. Whether you’re anti credit card debt or you want to ditch the habit, there are plenty of ways to live without a credit card in Canada. That’s a lot of bacon in someone else’s pocket. According to TransUnion, one of the top 3 credit reporting agencies, Canadians owed a collective $100 billion in credit card debt in 2019. Right now, Canada ranks second highest in the world for cashless transactions with over 76 million credit cards in circulation.
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