There are so many good ideas about saving money out there, it is
a bit difficult to understand why so many Canadians are still
facing bankruptcy (about 100,000 this year will declare
themselves bankrupt), and why, as a nation, we’re still so badly
in debt (to the tune of about $96,000 per household). Still,
it’s not all bad news. A recent study found that Canadians are
now setting aside about 5% of their incomes towards personal
savings, up from 2% only a few years ago. But what’s up with our
record personal debt levels?

First, we might be fooling ourselves. If we are not buying $5
lattes any more, but are just spending that $1000+ yearly
savings somewhere else on something else, we are not really
saving anything. (Right?)

If you have started buying your ketchup by the barrel at Costco,
but now seem to have every electronic gadget in the book, you
might be better off switching back to the grocery store and
buying smaller quantities, even if it costs more. Bulk buying
only works when you buy the products you need, and you keep your
eyes (and hands) off the ones you want.

The point is, if you’re still spending the savings, then you’re
not saving anything at all.

The key to getting out of debt, and increasing your wealth, is
to pay off those debts, and then use that money to invest in
yourself-by depositing it into a savings account, RRSP, TFSA, or
other investment. Bottom line is, it means you have to change
your spending habits into savings habits. And never go back.

That can seem tough when it appears that no one around seems to
be doing anything differently. But if you are using a credit
line or credit card to meet your monthly utilities bill, or
opening cards in the name of your children to help make ends
meet, it is definitely time to stop spending, pay off those
debts, and set aside a few gold nuggets for when you really need
them.

That can be hard to do when we are encouraged to spend, not
save. So the little tips and tricks that keep you on the savings
track-using cash, getting rid of the credit cards or at least
reducing them to one-are essential to establishing new
no-spending habits.

Canadians are now about $1.4 trillion (yup, that’s with a “T”)
in debt. That kind of cash should have all of us thinking twice
about our spending.

About the author:

Molly Wider

If you are heading down a bad financial path, a bad credit debt consolidation loan may help get you back on track. Visit our Bad Credit Loans website today, and breathe easier tomorrow! Visit our blog for more articles about Bad Credit and Debt.

A personal note from Jordan Nicckels…

Over a year ago, I made a point of transferring $275 from every pay cheque I received into a savings account.  It was very surprising for me to see that I was actually able to afford to do this yet I had never made such a devoted effort to save so much money in prior years.  You really do not realize where a lot of your money is spent each month without keeping a monthly budget – even a simple one.  Learn to save your money not spend it frivolously.

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