In 2008, the North American economy collapsed, leaving thousands jobless – struggling to pay their debts and to put food on their tables. Due to extensive media coverage, America’s breakdown received the majority of the attention. However, just across the border Canadian families were simultaneously enduring an 8% loss in net worth and a massive spike in unemployment rates. Two years later, not much has improved. Energy prices have been gone u p 12.5%, food prices have increased by 4.3% and gas has shot up a staggering 18%. Living well in Canada today takes a massive amount of budgeting. Saving is no longer an option – it is a necessity.
Why save in the first place?
It’s a harrowing fact that most Canadians and their families are only a month or two away from complete financial ruin. Because daily expenses have become so exorbitant, many people are surviving paycheck to paycheck with absolutely no security. Steps must be taken to provide for the future. Utilizing techniques to save money can help to provide Canadians with the extra funds needed to
- Save for retirement
- Establish an emergency account
- Pad a ‘sinking fund’ for unexpected household or vehicle repairs
As thrilling as it is to ‘binge spend’ as a rebellion against economic crisis, one must think in terms of short and long term gains to be truly financially secure.
Start small, start now
A quick search online will reveal countless coupon sites devoted to providing consumers with deals on everyday items. Trusted sites such as www.save.ca, www.brandsaver.ca and http://www.gocoupons.ca gather coupons daily to keep their visitors current with upcoming local sales. You may wonder how a piece of paper promising a fifty-cent discount can be of any help. Like anything else, there’s an art to it.
The inside scoop on ‘stacking’
“We found out there was a difference between manufacturer coupons and store coupons,” A Canadian stay at home mom confided. “ You know those flyers you always ignore? We started clipping them, saving them and then waiting for the stuff we needed to go on sale at the store. We ended up getting a tube of toothpaste for like, ten cents.” Stacking coupons is an excellent way to start seeing a tangible difference in your expenses, particularly if you purchase large quantities of household essentials at one time. Whereas our stay-at-home mom might have spent up to 30 dollars on toothpaste over a period of six months, acting wisely and ‘couponing’ during a store sale cost her approximately 5 dollars for a half a year supply. That kind of smart shopping pays off, allowing more freedom in your budget to focus on saving.
Never pay full price – ever
The few moments it takes to do some research before spending must become a habit. Making use of coupons, both virtual and paper, is certainly effective, what about those purchases for which coupons don’t apply? Be frugal minded and stop to look for sales before splurging. Flyers are the more traditional way to discover the deals around you but the Canadian website www.redflagdeals.com offers a more convenient and practical way to do your research. Like the aforementioned coupon sites, redflagdeals.com collects information on current and upcoming sales in your area. After entering either your postal code or search terms, the site will direct you to a list of merchants in your area offering in-store deals. In addition, the site content goes beyond typical consumer products to other expenses such as banking fees or insurance rates. It even offers a price comparison tool that searches your area for the best deal on a chosen product, saving you money and legwork.
Think Thrift
It may be time to consider shopping second hand. Most Canadian cities have at least one thrift store offering clothing, household necessities and appliances. Rather than stuffing landfills, many people are also deciding to give their items away through sites like www.freecycle.org. A fascinating cultural phenomenon, freecycle is comprised of over 5,000 individual groups with the numbers growing monthly. Interested people simply contact each other via the site to exchange or donate items on a first come first served basis. Getting a new washing machine for free rather than going into debt for a hundreds of dollars or more is something any cautious consumer should be proud of.
These days, driving a gas-guzzling Hummer is more likely to get you laughed at than admired as paying full price for anything has become a source of embarrassment. Luckily, the high price of living has caused concerned Canadians to create a wealth of resources to help save money. Be clever with your finances by taking advantage of these services to get you and your family out of your own economic crisis.
This post was written by James Lander, a self-proclaimed coupon expert. Lander also frequently contributes to couponing site, Couponing.
