Many of us have made the New Year’s resolution to start saving more and spending less. We’ve even talked about it a great deal on this blog. And while that all sounds fine and well, how exactly can you do that? It might be easier than you think – and it could only take you ten minutes.
Accelerate Your Mortgage
Yes, this does simply mean paying off your mortgage faster; but it’s a little more official than just making more on your monthly payment. Call up your Ottawa mortgage broker and see if you can start making bi-weekly payments instead of monthly. How it works can be a bit more complicated than that, which is why you’re going to need to speak to your broker about it.
Pay off Your Credit Cards
Saying that credit cards have a high interest rate is no joke. And when you consider that they could be as much as three times higher than a secured line of credit. If you’re currently just making the minimum monthly payment on a $5,000 card, you could be spending $3,719 in interest alone over the course on one year. How to fix it? Up the payment you’re making on a monthly basis, and watch your minimum monthly amount come down, down, down.
Use Your Benefits – And Then Claim Them
Not only does using your employers’ benefit keep your teeth clean, your eyes healthy, and help in case of any emergency, but the money you pay on them can also be claimed on your taxes. So for instance, if you had $1000 worth of dental work done and the insurance company only covered $800, you can claim the $200 you paid yourself. When you save money this way, you’re really killing two saving birds with one stone. First, by saving money on your medical expenses; and then again on your taxes!
Speaking of taxes…..
Claim your credits! We are so lucky here in Canada to have so many tax credits that are created specifically to save you money! Have a kid in sports? Apply for the Children’s Fitness Tax Credit. Working for a low income? Apply for the Low Income Tax Credit/Working Income Tax Benefit. Need child care? The Child Care Tax Credit could be the answer you’re looking for.
These are just three of the ways that you can save $1000 in 10 minutes. The point is to look at your entire financial picture and see where money is hiding, rather than just consider how many lattes you could be cutting back on (although that’s not a bad idea either.) So get out your taxes, your receipts, and maybe even a mortgage calculator, and start finding your money where it’s hiding. So this year, you can actually keep that resolution of saving more – even if you’re not spending less. ”
