How to Save Between $2,000 and $5,000 a Year
Spending money is fun, but saving money can be fun too! It’s fun to pay cash for the things you saved for!
Who doesn’t love going on vacations? Or buying a new TV? Or whatever is on your wish list? It’s even more fun when you can enjoy those things without a guilty conscious because they’ve already been paid for.
We all know how tough it is to pinch a penny these days. Saving money isn’t easy, but with a little creativity and some willpower, you can save between $2,000 and $5,000 a year with a few simple tips and hacks. So here’s how to save $2,000 – $5,000 (or more!) a year.
Start Off by Setting a Goal
In order to save $5,000 a year, you’re going to have to set aside about $417 a month. But if this amount is making your heart race, (don’t worry, it sounds scary to me too) then try saving $2,000 a year. You’d only have to set aside about $167 a month to reach your goal.
Cut down on takeout
No, you don’t have to let go of your takeout cravings completely. But consider cutting down 80% on takeout food. If you’re not tracking your expenses, you probably don’t realize just how much money you’re throwing away at on takeout.
But for example, if you order the Big Mac meal for $10 once a week, (just once!) that’s $40 a month. If you cut down this vice out of your annual expenses, you would’ve managed to save $480 a year.
Don’t Pay for Netflix
Say goodbye to your Netflix subscription. Or Disney+. Or Spotify.
Think about any monthly subscriptions that you have and consider cancelling one or two for a little while.
The cost for Netflix’s standard plan is about $15.49 a month. That’s $185.88 a year you could save if you forego this popular streaming service.
Think about the savings you will see if you cancel more than one service.
This can also become a fun exercise in creativity when you need to fill your downtime with something entertaining.
Start a $5 jar
Have you heard of the $5 jar hack before? How it works is, every time you find yourself with a $5 bill, you put it in a jar. Simple, right?
You’ll find that all those $5 bills really add up quickly and painlessly!
Save Your Raise
Say you got yourself a raise that will give you $2,000 a year after taxes. The simplest way to save is to pretend like you never got the raise in the first place. (Only if you can manage it with the cost of living these days!)
So, every month, transfer $167 into your savings account and in a year you’ll have $2,000 to play with!
Cut Down on Starbucks
The average price of a Starbucks tall latte in Canada is $3.85. If you go to your local Starbucks five days a week, you’re spending $19.25 a week, $77 a month, and $924 a year on average.
But if you cut down on Starbucks or drive-thru coffee in general and settle for the coffee in the break room or from home, you could save yourself nearly $1,000 a year.
Try your hand at DIY oil changes
If you are an ambitious type and enjoy a challenge, doing your own oil changes at home can save you a lot.
Learning how to drain and replace the oil and other fluids is easy. There are tons of online tutorials on YouTube that can teach you how to do it.
Same with changing your tires from summer to winter tires and vice versa. Save yourself a good chunk of change by learning how to do these yourself.
Reduce your carbon footprint
The average person spends about $386 per month on gas for their car. That’s $4,632 a year.
You can reduce your monthly gas expenses by carpooling, using public transportation like the subway or a bus.
If all else fails, try walking or riding a bike. It’s healthy and 100% free.
Sign up for PC Optimum
PC Optimum is a points program that is available at Real Canadian Superstore, Shoppers Drug Mart, or other Loblaw banner stores.
You collect points on your purchases, which can then be redeemed in $10 increments off any purchase you make at these stores.
Here is an in-depth article about the PC Optimum Program.
Cancel your gym membership
The average cost of a gym membership is about $50 a month. That’s $600 a year, and if you add the initiation fee, it will probably be more like $800.
Consider canceling your membership and go for a nice jog around the block or do some push-ups at home. There are tons of YouTube channels with 40, 50, and 60-minute workouts that are just as good.
Reduce Your Cell Phone Plan
All those Smartphone data plans you got suckered into getting could run you at least $80 a month. That’s $960 a year on average.
But you can find carriers that offer prepaid data plans. If you run out of credit, just use Wi-Fi and let people know they can only reach you when you find free Wi-Fi. This will help you save about $480 a year.
All in all, just shop around to find something that will suit your needs at the lowest price.
Get a Part Time Job
Sometimes, the best way to save $2,000 to $5,000 is to earn it.
The average minimum wage in Canada is $15.55 per hour. So, if you work 15 hours a week, you’ll earn about $233.25. That’s $933 a month and $11,196 a year, minus the taxes.
As you can see, eliminating little things here and there can really add up! Try adopting a few of these ‘how to save’ techniques, even for a short time and see how much you can save!
I’d love to hear all your ideas for how to save $2,000 – $5,000 a year. Drop a comment below!
