Me and My Money

Love your lists, DIY and other great spending and saving tips...

Posted November 25, 2011
Originally Published July 2, 2009

Q: I noticed that the Star is into lists all this week and I am wondering if you have a list of top money tips. My husband is finishing a graduate degree, we have one child and I am working full time. I make $64,000 a year and we pay all the bills but I feel like I spend too much, both on myself and my family. I just don’t have any big areas to cut unless we get rid of our cell phones or televisioninternet package. Markie P.
A: What you need are seven steps to financial freedom. And here they are.
1. LOVE YOUR LISTS
Don’t leave home without one. That goes for grocery shopping, a trip to the pharmacy and, most especially, a visit to one of the big box super stores. Temptation abounds in every aisle so if you have a list you are more likely to resist this or that special deal which you probably don’t need.
2. BULK UP
Bulk buying was in its heyday in the 1980s and it is time to bring it back. Bulk food stores and the bulk section of grocery stores can cut 10 per cent annually or more from your grocery bill. For a family of four that amounts to anywhere from $600 to $800 annually. Plop $800 into an RESP or an RRSP and the government grant or tax savings turns it into as much as $1000.

3. THE 24-HOUR RULE

To make the most of your shopping dollars and minimize impulse buying, follow the 24-Hour rule. Put non-essential purchases on hold for 24 hours. Then go home and ask yourself: Do I really need it? Can I really afford it? Is this best use of my money? If the answer to any of them is no, then let the purchase go and you won’t regret it one little bit. Twenty-four hours gives you a cooling off period which takes the emotion and impulse out of shopping.

4. $1 = 2 JOBS

Each dollar you spend can do two jobs if you shop strategically. Comparison shopping is the foundation of savvy spending. But don’t let price be the only deciding point. If you find two similar items at the same price but one offers loyalty points, picking that item will pay future dividends.

5. SPEND ON WHAT YOU LOVE

Most people don’t realize they spend thousands annually on stuff they don’t really care about or could do themselves. Cut out a few small, regular purchases daily, weekly or monthly – from magazines to manicures and from lattes to lunches – and you’ll have money to spend on what you love – from hobbies to holidays and art to amour. Spending just $5.50 less a day adds up to over $2,000 annually!

6. WORK THE BUY NOW PAY LATER DEALS

Make no interestno payment offers work for you and get a bonus. Purchase the item but don’t coast through the pay later period. Set aside an amount every month to equal the total price once the payment free period expires. When it comes due charge the amount to a loyalty credit card offering miles or points with every purchase and then pay off the balance with the cash you’ve saved.


7. THE DIY ROUTE TO CULINARY LUXURY

What does artisan bread, fine wine and fresh squeezed O.J. have in common? They’re expensive to buy but you can easily make them yourself. A loaf of my favorite, multi-grain sourdough with cranberries or olives snatches as much as $5 from my wallet. But for the cost of a basic bread machine, simple juice squeezer or a top quality kit at a wine shop, you can enjoy healthy, gastronomic treats at a fraction of the cost. Wine for $5 to $6.50 a bottle, bread at less than a buck a loaf and fresh squeezed orange juice for just $.75 a glass.

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