1. Record expenses
Keep track of what you spend! Know where your money is going. Make note of which expenses can be cut.
2. Categorize
Separate your expenses into the categories that pertain to you on a monthly basis. I divide mine into cash (debit and cash expenses), entertainment ("wants"), transportation, and visa.
Examples
• Cash: hair cut, birthday present
• Entertainment: movie, meal out
• Transportation: subway fare, gas money
• Visa: clothing, shoes
Other categories to consider: cell phone bill, gym membership
3. Decide your essentials
Separate what you need to spend (i.e. living expenses) from what you want to spend (i.e. entertainment, clothing etc.). This is especially helpful to see which expenses need to be cut.
4. Research before purchase
Consider all options when it comes to technological purchases, clothing, memberships etc. Check online or in store to ensure you are making a cost effective choice.
5. Save receipts
Do this in order to record expenses, and in the case you decide to return or exchange your purchase.
6. Cross reference
File your receipts and cross reference your expenses with your visa statement. Pay attention to possible errors.
7. Consider cost effective forms of transportation
Walking, biking, and public transit offer cost effective ways to get around. Use mapquest or trip planner on the public transit website in your designated city, like the TTC, to get to your destination.
*Load a PRESTO card to use multiple forms of public transit so you never have to worry about finding exact change!
8. Save for choice purchases
If you are looking to purchase something substantial, set aside a set amount each month in order to save. Make the purchase without making a dent in your bank account.
9. Create a savings account
Set aside a certain amount of money every paycheque to keep in a savings account. Also consider investing your money to expand your bank account.
10. Be creative
Add to your account! Use social media, craigslist, or kijiji to sell unwanted items. Or save your money! Barter, by exchanging services (i.e. cover reception in exchange for yoga classes). The possibilities are endless!
How do you budget?
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