We all know the struggle. Having the intention to spend less and save more is always easier said than done! When you’re living in a beautiful place like Burlington, it’s a pleasure to take advantage of all the great entertainment and attractions around us. But, there are also ways to save while doing these things we love.
Avoiding debt and putting savings away without dipping into them is something that requires a lot of discipline. But you can also set up your savings strategy so that you can reduce your temptation and better allow it to grow. Here are a few of those tips to help you succeed and master the art of saving.
Start Saving Early
The earlier you can begin saving, the higher the accumulation will be. Even if you only place 10% of each paycheque into a savings account, the power of compound interest can drastically grow that amount over time. By starting early, it gives your savings plenty of time to grow and truly take advantage of that compound interest.
That one little word is one of the most important points when it comes to successfully stashing away savings without really noticing the effects. By setting up an automatic transfer each time you get paid, you can have a certain amount or percentage automatically transferred from one account to your savings. This is great for those who struggle with discipline. By having automatic transfers, you won’t even notice the difference.
Spend Below Your Means
Far too many of us end up in debt because we don’t know how to spend below or even within our means. That means whenever you receive a raise or even a bonus, it’s wise not to let that increase affect your spending habits. Getting an increase in pay shouldn’t automatically mean you get to spend more. Try to maintain a habit of spending below your means so that you have enough cushion to save and steer clear of debt in the long-term.
Learn to Budget
If you can learn how to create a budget and stick within it, this can be an invaluable way to see your savings grow quickly. Again, so much of this really relies on discipline. Determine your priorities for expenditures and areas that you can reduce so that you have enough funds to place in your savings without feeling the effects.
Diversify Your Strategy
It’s usually recommended to never place all of your eggs in one basket. Whether it’s an RRSP or stocks, by talking with a financial advisor you will learn various ways to use your funds in order to minimize your risks and maximize your returns.
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