6 Easy Ways to Save $300 a month

November 22, 2014 dotcomwomen

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You can afford to take that trip to Europe or splurge on fabulous shoes without worry. Try easy ways to save money and you’ll be seeing green with up to $300 of extra cash in your wallet.

A pair a Manolo Blahnik heels for each day of the week. A three-week exotic vacation each year. Season tickets for two to the opera, ballet and theatre. It’s fun to daydream about what you’d do with more money.

You can realize some of your dreams without getting a second or third job to finance those ambitions. And you don’t have to live a no-frills lifestyle to stash away for that yearly vacation or weekly spa visits. Follow these six easy steps and you will find ways to save $300 a month without feeling deprived.

1. Banish bad debt and save up to $50

Before you travel to Bali, pay off your bad debt. “It’s the debt you take on in order to spend,” says Tina Tehranchian, a certified financial planner for Assante Wealth Management in Richmond Hill, Ont. “Good debt is tax-deductible — you take on in order to invest and to make money.”

Credit card interest rates are high — often close to 40 per cent — so consolidate your debt onto something with lower interest, such as a personal line of credit. (Banks determine the exact rate based on your credit history.) The switch could save you a chunk.

For example, Tehranchian says that if you have a $5,000 balance on your credit card, you pay about $1,000 a year in interest. Transfer your balance onto a line of credit at prime plus 1.5 per cent (a likely rate if your credit is good) and you save roughly $625 a year, or about $50 a month. Use that savings to pay down your loan faster.

When you’re debt-free, stash the cash for your short-term desires, such as a new entertainment centre or getaway, in a high-interest savings account.

2. Shop with cash and save up to $100

Track your expenses for a few months to understand how much you spend and what you spend on, recommends Tehranchian; then determine where you can comfortably cut back. If you spend $200 a month on clothes and you decide to only spend half that amount, you’ll instantly save $100 a month.

With your new budget in place, Tehranchian suggests putting cash aside for each necessary expense. When you shop, only bring the allotted amount of money with you, leaving the plastic cards at home. Plastic makes it easy to buy on impulse and overspend.

3. Bypass the booze and save up to $60

When you dine out, avoid ordering martinis and wine. “Restaurants have a huge mark-up on drinks,” says Tehranchian. “If you can get away with water with dinner — you can have wine and beer at home beforehand — you can save quite a bit.”

If you eat out once a week and share a moderately-priced bottle of wine (about $40), you could save at least $60 a month by having non-alcohol drinks instead.

4. Slim down your grocery bill and save at least $40

The average family spends at least $100 dollars on groceries a week, says Tehranchian. Revise your grocery list so your bills are 10 to 15 per cent less and you could save at least $40 dollars a month.

Here’s how to save on your grocery bill:
-use coupons
-buy no-name brands (they’re usually 20 to 30 per cent less than name brand products)
-buy less prepared food — fresh is cheaper and healthier.

5. Go landline-free and save at least $40

If you and your family are outfitted with cell phones, consider unplugging the home phone. Disconnecting your landline could save you at least $40 a month. Meanwhile, keep your mobile bills low by shopping around for the most affordable packages. “And only get the additional features you need rather than going with all the frills that you may never use,” Tehranchian says.

6. Cool off at home and save about $17

Reduce your energy consumption at home and you’ll save. For example, Tehranchian suggests switching from standard to compact fluorescent light blubs, which use about 75 per cent less energy. As well, turn down the heat when you’re not home. “If you lower the thermostat by 10 per cent, you can save 10 per cent off your gas bill,” she says. “If you’re paying $2,000 a year, that’s about a $200 savings (or $17 a month).”

Sticking to a savings plan isn’t always easy. To stay on track, keep your sights focused on your goals. Before you know it, you’ll be travelling the world or enjoying a shopping spree at Dior.