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What is the 30-day rule?

The 30-day rule is a temporary rule that can help you adjust your consumption habits. If you see a product you like in a store, according to this rule you should wait 30 days before buying it to see if you still feel like buying it after this period of time.

If you no longer wish to buy that product or service, the money must go into your savings account. This rule helps you avoid making unnecessary or impulsive purchases.

How does the 50/20/30 rule work?

Elizabeth Warren published the 50/20/30 budget rule in her book All your Worth: the Ultimate Lifetime Money Plan. The rule is to divide and spend your after-tax income:

• The rule states that you must devote 50% of your after-tax income to your needs and obligations.
• The remaining half should be split between 20% to pay off your debts and save and the remaining 30% can be used to buy whatever you feel like.
• The rule is a template designed to help people manage their money and credit for emergencies and pensions.

Top 10 money-saving tips

1. Keep an eye on your expenses

To start saving money and credit, you must first determine how much you spend. Keep track of all your expenses, including coffee, groceries and cash tips. Personal finance management is an easy trick that can save you a lot of money in the long run!

Once you've gathered your information, sort it into categories such as gas, food and mortgage payments, and add up the totals. Check your credit card and bank statements to make sure you're not missing anything.

Tracking your spending will help you determine how much you can spend per month and identify areas for improvement. You may realize that you're spending more than you should on things you don't need - or that you're spending more on things that could be cheaper!

2. Focus on your debts

If you're trying to save money by budgeting, but you still have a lot of debt, you need to focus on that first, or it will continue to eat away at your funds. When you're no longer paying interest on your mortgage, you can quickly put that money into savings. A personal line of credit is one way of consolidating your debts and making them easier to repay.

3. Set savings targets

Visualizing what you're saving for is one of the most effective ways to save money. Want to buy a house with 20% down in three years? Now you have a goal in mind, and you know how much money you'll need to save per month to reach it. To reach your goal, create a spreadsheet and calculate how much you'll need to save each month!

4. Less is more

Budgeting can be very difficult if you have a large sum of money that's meant to last a while. It's hard to budget $2,400 over three months, but it's much easier to manage $800 a month.

Use a savings account as a holding cell and calculate the amount of money and credit you need per month, then transfer it to your main account. Working month by month with a lower amount will help you reduce unnecessary purchases and save more. You can even automate this process by setting up an automatic monthly transfer from your savings account to your main account.

5. Save on utility costs

Ask your electricity supplier for an energy audit, or find a certified contractor who can perform an energy efficiency assessment of your home. This can be as simple as sealing windows and doors, or as complex as installing new insulation and high-efficiency appliances.

By lowering the thermostat on your water heater by just 10 degrees, you'll save 3% to 5% on your energy costs. Compared to a traditional storage water heater, installing an on-demand or tankless water heater can save you up to 30% on your energy bills. It's a long-term solution, but you could save tens of thousands of dollars in utility costs over 5-10-15 years.

6. Re-evaluate your phone package

You could save money by changing plans if you're paying extra or paying for more data than you need. Examine your provider's packages and choose the one that best suits your budget. There are many packages, providers and companies to choose from. Changing your plan or provider could save you $40 a month.

7. Analyze your lifestyle habits

If you're re-evaluating your phone contract, it's also a good time to re-evaluate your other subscriptions.Are you spending hundreds of dollars a year on cable, Netflix, Hulu, Amazon Prime, YouTube, Spotify, etc.? Maybe it's time to ask yourself if you really need all these services.

Similarly, if you go to a restaurant or bar several times a week or order takeaway food, it might be a good idea to limit yourself to a few times a week and have a monthly budget dedicated to eating out.

8. Food plan

Food is one of the biggest factors that can reduce your ability to save money. The cost of take-out, overspending on shopping and numerous trips to the grocery or convenience store can quickly add up! Planning your weekly breakfasts, lunches and dinners will help you control your weekly expenses while taking advantage of discounts at the grocery store.

9. Self-control

The biggest obstacle to saving money is yourself. It's very easy to go out and spend on your payday. If you're someone who buys things haphazardly, spends too much and is a little too liberal with money, you should put in place ways to stop yourself from spending.

Obviously, as we've said, meal and expense planning is a great way to do this, but another way is by applying the 10-second rule.

The 10-second rule states that before making a transaction, you should think for 10 seconds about why you shouldn't do it. Ask yourself the following questions:

• Is it necessary?
• Do you already own something similar?
• Can I borrow it?
• Could this money be used for something better?

10. Transport

Transportation can be very expensive, but there are many ways to use it to your advantage and save money:

• Make sure your car tires are properly inflated. Under-inflated tires create more friction with the road, resulting in faster wear and lower fuel efficiency. Check the pressure of your tires once a month and inflate them to the maximum recommended pressure.
• Buy a bike. A bike is a fast, convenient way to get around.
• Take advantage of public transportation. If you live in the city, using public transit will save you a lot of money (gas, parking, etc.).
• Walk. Consider walking instead of driving if your destination is only a kilometer or two away.
• Carpool. If you regularly drive to work (or somewhere else), you can carpool twice a week or more. You can save up to 20% on car wear and fuel costs per week.

Where is the best place to invest your money?

Savings account

A standard savings account in Canada is a simple and easy way to create a reserve for your money. There are several types of savings account in Canada, but the two main ones are fixed-rate and variable-rate.

Tax-free savings account  

In Canada, investing your money in a Tax-Free Savings Account (TFSA ) is a great way to save money over the long term. A TFSA allows you to invest money in eligible assets and watch it grow tax-free throughout your lifetime. With a TFSA, interest, dividends and capital gains are tax-free for life. Funds in your TFSA can be withdrawn at any time and for any reason, and all withdrawals are tax-free.

Need help getting out of debt and saving for the future?

This article gives you an overview of how to save money. However, these tips work better for some people than others. If you're concerned about your financial situation, don't hesitate to contact a licensed insolvency trustee.

Groupe Serpone offers you the following services:

• Consulting and financial evaluation
• Consumer proposal
• Personal bankruptcy
• Debt consolidation

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