Last updated on July 6th, 2020 at 02:47 pm
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Are you one of those people who saves money by making your own lunch? How about bringing your own coffee in a mug, instead of leaving $5 each day at Starbucks? If so, I have a lot of respect for you and mostly because I cannot do it myself. I, too have read tons of articles teaching you how to save money by skipping the latte line or avoiding that convenient sushi place right next to your office. I would like to believe there are better ways to save some money and that bringing home cooked meal is not all that it takes to dramatically increase your savings.
First of all, brown bag lunches are not free. No matter what, when you consume food, it has a cost. The entire argument for brown-bagging your lunch isn’t that it’s free, but that it costs less that eating out at a restaurant, however as we all know food at the supermarkets are nowadays insanely expensive and that by the time you buy all the ingredients for a meal you could have eaten at a restaurant a few times. That is not to say that you should never cook food at home, it is healthier and could save you a bit of money. But, I can argue that there are more effective ways to build wealth.
-Negotiating a lower mortgage rate and accelerating your payments should be the top priority on your list if you want to save money. A lower mortgage rate could lead to huge savings in interest over the life of your mortgage. Accelerating the payments will cut years off your mortgage and help you be free of mortgage payments way sooner. Talk to your bank or mortgage specialist, who can explain the rules of your mortgage, whether there are any fees involved and help you find the best way to save up. Ask how you can make extra payments and when. Imagine your life, mortgage free!
-If your job offers RRSP matching program, take it!
This is literally free money and you should never reject it. Take full advantage of this benefit and try to contribute as high as your employer is willing to match it. Not only will you make twice as much but you will end up saving through tax deduction, tax refund and investing.
-Reduce your investment fees. Lots of low-cost investments are out there and you should always find out what you are paying for yours, first and foremost. A difference in as little as one percent could mean retiring one or more years earlier and saving more in the long run.
So go ahead, make use of those suggestions and believe me that there are plenty more. Talk to your financial adviser, he should be able to give the best advise and if you manage to stick to these three, you most definitely should reward yourself with a yummy lunch in your favorite restaurant.