Financial Health

Part of overall health includes budgetary health too! As a future student (ONLY TWO MORE WEEKS!), I'm extraordinarily conscious of my budget and finances. Mind you, I've always been a pretty frugal person, but now that I have a $6000 bill coming at me every year for the next 4 years, plus my regular expenses (rent, food, living), suddenly my situation seems much more dire.

Now that my boyfriend and I are living together (yay!), my living expenses have been cut significantly. We're splitting the costs of food, hydro, rent, internet, etc., so I'm super lucky that I don't have to worry about covering these costs by myself! In all, I'm estimating my monthly expenses to be just over $1000/month (and they literally cannot be cut any further). The problem? I'm working 3 jobs part-time, possibly 4 once I start teaching yoga regularly, which will give me approximately $1000.month. Oh good. I just break even, and that's assuming that no emergencies come up. How the crap am I supposed to save $6000/year for tuition when I can barely sustain my own living expenses???

Mind you, I have been saving for a couple of years for my education. I currently have enough for the first 2 years, so I'm not in a critital situation at this point. But come this time next year, it's going to seem a lot more crucial.

First step: Create a Budget

First thing to creating a budget: write EVERYTHING down! Much like tracking your food to lose weight, you need to track everything you spend and earn to lose debt! I keep a spreadsheet each month where I can easily track what I've spent broken down into categories: Rent, Food, Hydro, Phone, Entertainment, Clothing/Gifts, etc. For the first month, I tracked everything I would spend normally without trying purposely to cut down, just to see what my normal spending habits were like. As I said, I'm a pretty frugal person to begin with, and I was REALLY surprised to see how much I was blowing on takeout food, coffee and little impulse purchases things! It only costs a couple of bucks at the time, but it really adds up over a month! I used this as a guide to see where I could trim down my spending to a level that was reasonable to maintain (e.g. don't cut your grocery bill to $50/month, because that's impossible).

I highly recommend checking out the resources on Gail Vaz-Oxlade's website and getting yourself addicted to Till Debt Do Us Part :D. Her website also has groups for various people (e.g. by geographic location, by life stage, etc). For example, there is a student group where I've learned some more tricks and tips specific to university students on how to save and earn a few extra bucks!

Second step: Save your money

Now that you've got your budget written down and you're ready to track, see where you can get more for less.

I'm a major coupon clipper/flyer shopper. Check the flyers for grocery stores near you online to see what's on sale. If something looks good (e.g. pork tenderloin or gigantic club packs of chicken are on sale), I will either arrange my weekly menu around these items in order to use them, or make some room in the freezer to accommodate them and use it later. As for coupons, there are TONS of coupon websites around that I have used to get some awesome deals on things I use every day, e.g. toothpaste, cereal, cleaning products, etc. Examples:
www.save.ca
www.brandsaver.ca
www.smartcanucks.ca

From BrandSaver alone, I racked up about $17 worth of coupons for things I actually use!

You can find coupons for nearly everything that you want to buy, especially if you're buying online. Most companies have a place for promo codes before you check out. Google search the company you're buying from and "promo codes" (e.g. "shoes.com promo codes") and you'll be amazed at the things that pop up. You can really save a lot this way! I got a few coupons for clothing stores just by doing a quick search. Buying stuff online is often cheaper than buying in stores (e.g. Chapters), but watch for shipping fees. Some companies will ship for free if you purchase more than a certain amount before taxes.

If you're looking to buy something like electronics, furniture, etc., I recommend checking out Craigslist first. You can often find items that are in excellent condition for incredibly cheap prices. Often the owners just need to get rid of the item because they're moving, got a newer model, etc. This is also a great way to earn some money too - get rid of the stuff you no longer need on Craigslist! You'll get more from it this way than you would from a yard sale. When we moved in, I sold some bookshelves, my Nintendo Wii (we had duplicates of the system and some games), a dresser and a few other things, and earned myself about $350!

Loyalty and points cards are a great way to save as well. Some companies will charge a small amount at first ($20-25 usually), but if it's a place you shop at frequently, it will pay for itself. I have cards for Chapters, Suzy Shier and many other stores that give me discounts on every purchase and coupon books for cheaper or free product at certain times of the year. I also have a President's Choice credit card, where I earn points on every purchase that I charge to the card which I can put towards free groceries/other stuff sold in the store. After racking up points for years, I have nearly $500 worth of free groceries sitting on the card waiting for me.

Finally, a great way I've found to save on exercise and athletic fees --- volunteer! Many yoga studios offer free yoga classes to students who volunteer a few hours a week to help clean up. I've heard that the YMCA offers free memberships to their athletic centre volunteers as well! Don't forget that going outside for walks and runs is free :)

Third step: Earning Extra

If you have heavier debt or need to save extra, you may need to go beyond frugality and actually earn some extra cash. I mentioned one great way already - selling stuff on Craigslist or yard sales. You'll help to declutter your home and your finances all at once :)

If you have the time to work a part-time job, this is the easiest way to get extra cash. Or, if you are able to pick up overtime/extra shifts at your current job. In looking for my part-time jobs through the school year, I admit, I purposely applied at places where I knew I would want to get discounts *shame*. e.g. I wouldn't apply to a high fashion retailer because I'd never in a million years be able to afford their product. But applying to a clothing store I frequent anyway was a good move!

Ask around your neighbourhood or put up signs advertising your services to earn some more cash. Offer to shovel snow or rake leaves for your neighbours, walk their dogs, babysit, clean houses, get groceries for them, etc. If you have neighbours who are elderly or who have a lot of kids/are super busy people, this kind of service can be incredibly helpful for them!

Fourth step: Banking and Saving

Now that you have some money to save, make sure that you save smart. Put your savings into a high-interest savings account (i.e. an account that you won't be dipping into regularly. Let it sit there and earn money for you!). TFSAs are great for this - you can put in up to $5000 per year tax free! If you know you won't be touching the money for a longer time, GICs can be a great investment to earn some interest and know that your money has been tucked away safely for a few years.

I don't claim to be an expert financial consultant or anything, so if you are interested in other kinds of investments (RRSPs, mutual funds, etc), see a pro who will be able to fix you up with investments that fit your life, needs and future plans.

What are your tips to save money? Do you have other interesting and creative ways to earn extra bucks?