7 Simple Tips to Save $5,000 in 2017
December 1, 2016
We are one month away from 2017. If you’re reading this, you would probably love another $5,000 in your wallet. Who wouldn’t?
Our solution: We are going to share 7 different tips with each tip saving you approximately $60 per month. If you manage to tackle all 7 tips, this can add up to over $5,000 per year (7 tips * $60 per month * 12 months = over $5,000!). And if you’ve got a family, the household savings can be even more significant.
Let’s get started.
- See you later, cable
Do people still watch normal cable TV, on like, a television? You can break up with your cable company by watching free content online (many channels stream episodes), getting Netflix, or picking up a free HDTV Atenna. Cable can easily cost $70/month vs. Netflix at $10/month. Savings of $60/month.
2017 savings: $720
- Eat in more often
Cooking your own meals is a massive money saver. If I stop to calculate the cost per meal of cooking at home, I’m often surprised at how low it really is – often under $5 a person. Compare that to take-out or eating out, which let’s say costs $15 including tax, tip/delivery (on the low end) – and you can see how even cooking two more meals a week instead of eating out could save you $80/month.
2017 savings: $960
- Use free online services vs. expensive software that you don’t really need
Rather than shelling out big bucks for a package like like Microsoft Office for your home, see if a free service like Google Docs meets most of your needs. Antivirus software is similar. Don’t spring for an expensive software package when companies like Avast or AVG offer similar functionality for free.
Finally, an important financial service like getting your credit score online used to cost upwards of $25. Now, financial technology company Borrowell has offered a service to track your Equifax credit score, for free.
- Drink at home instead of the bar
A pint at the local bar costs $6-7 on a good day, which plus tax and tip comes close to $10. Buying from the Beer Store to consume at home is closer to $3 per beer. 2 drinks per week at $7 of savings per drink = $56/month.
2017 Savings: $672
- Bike or walk instead of paying for transit or gas
Where I live, a monthly transit pass costs $140. Thankfully I’m close to work, so I can ride my bike. Even if you don’t live close to work, there are lots of opportunities to cut transit costs but it’s not something we think about often. If I only bike 3 days a week, I can save close to $90/month.
2017 savings: $1080
- Under-indulge. Do you really need to jump on that deal?
It’s so easy to justify a shirt that just costs $25, or an amazing deal that’s “just too good to pass up.” Whatever your weakness is, think about whether you really need it. It helps me to think about how long I’ll have it before it ends up as landfill. If we can buy two fewer items per household per month it’ll make a huge difference.
2017 savings: $600
- Pay off your credit card balance.
Most credit cards in Canada charge 19.9% interest. If you’re not paying off your credit card in full every month, it’s like you’re taking a loan with an interest rate of 19.9% (or even 29.9% for store cards). A smarter option: pay off credit card with a lower-interest personal loan. Technology today makes it easy to check online what kind of rate you could get – try a service like Borrowell. On a balance of $5,000 and a sample interest rate of 9.9%, your savings in interest would be $42/month.
2017 savings: $504
Seemingly subtle lifestyle changes can make a big difference over time. Here at Borrowell, we like to take a bite-sized approach to tackle big savings goals. If I add up the monthly savings, it totals $419/month. That’s an astounding $5,036 a year!
What would you do with that extra dough? Take a vacation? Invest? Let us know!