An emotional, fear-based response, a financial scarcity mindset often sends people down a rabbit hole of overthinking, instilling beliefs that they will never have enough money to live comfortably and that they will always be stuck in some form of financial turmoil. This mindset can harm one’s long-term financial wellbeing and quality of life, experts say.
Why your money mindset might be holding you back
“The mindset plays a very big role in keeping people stuck in the financial situation they’re in,” said Jeri Bittorf, a financial wellness co-ordinator with Resolve Counselling Services Canada. Bittorf said she frequently encounters clients who have a scarcity mindset in her line of work. Sometimes, people hold onto fears that they will never be able to earn more or reduce their expenses, and their situation will never get better.
That emotional response usually comes from some sort of trauma around money, said Kalee Boisvert, a financial adviser at Raymond James Ltd. It could stem from childhood experiences, such as growing up poor, but it can also be established later in life from a perceived lack of resources, or by hearing stories of people around you unable to pay their rent or afford groceries, Boisvert said.
“Sometimes, this money scarcity has come from stories that people have heard and almost taken on as their own or the fear of that,” she said.
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Boisvert picks up on red flags of a scarcity mindset among her clients when she hears comments such as: “I’m terrible with money; I’m scared that I’ll never be able to retire; I should be doing a better job or should be doing more.” That’s “money scarcity mindset working in the background,” she said.
Boisvert said the mindset can lead to confidence and self-worth issues, which eventually spill into everyday life decisions about jobs, partners you choose or the residence you choose to live in.
Understanding your money past is key to changing your financial future
Bittorf said it’s important to get to the root cause of this mindset, and that journaling plays an important role in unpacking patterns and beliefs around money. “I have them start at, like, the earliest ages of memory, around five years old,” she said.
Bittorf uses prompt questions about financial security growing up such as if their parents talked about money, whether they experienced financial arguments at home and if they fit in financially at school. “I want them to be thinking about all of those things because those are going to influence the decisions you make now, even if you don’t realize it,” she said.
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Sometimes, Bittorf encourages her clients to create vision boards about what they’re passionate about and what their future selves look like with an abundance mindset. That creates an excitement to pursue those plans. “If they were to get out of this life situation, what are the goals?” she would ask clients.
Building abundance through mindful money habits
While unpacking financial patterns is foundational, Bittorf said it comes down to real steps, such as setting up a budget, tracking money and breaking up broader financial goals into smaller, actionable steps. That also means making some tough decisions, such as cutting out expenses where needed or changing jobs. “You know you’re strong enough to do that. And there’s a lot of support out there,” Bittorf said.
For Boisvert, breaking out of the scarcity mindset has been a conscious effort in her own personal journey. If she had not broken free from this mindset growing up, she thinks her response to money would’ve been to save and put everything away instead of aligning her spending to what she really cares about.
“Knowing that I grew up with the scarcity mindset that I had to really work hard to overcome, when I talk to (my daughter) about money, I just say money is a tool and it’s a tool that helps us achieve things,” Boisvert said.
For those stuck in the cycle, she suggested separating facts from fiction and practising gratitude. “If you’re feeling this fear and dread, and you’re looking at the numbers and you have the money to pay the bills and the rent, then it’s just about giving yourself a reminder, ‘Well, right now I am safe. Is this an old story coming up for me?’” Boisvert said.
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Recently, Michael helped to update the Canadian version of Personal Finance for Dummies (7th edition), a comprehensive guide to everything from budgeting and spending to taxes and retirement. Below, he shares his own money experiences and what he thinks is the most underrated financial advice.
Who are your finance or investing heroes?
Maybe John Bogle, who founded The Vanguard Group, an investment firm in the U.S. that created the first index funds for retail investors. He was driven by more than self-interest. He wanted to empower small investors. Bogle also wrote The Little Book of Common Sense Investing, which made it into MoneySense’s list of 25 timeless personal finance books.
How do you like to spend your free time?
Cycling, hiking, running. I live in the Cowichan Valley on Vancouver Island, which has amazing trails right outside your door.
If money were no object, what would you be doing right now?
Hiking in Tofino, B.C. Photo courtesy of Michael McCullough.
Travelling to expensive destinations like Paris, Japan and the South Pacific.
What was your first memory about money?
I seemed to “get” money from a young age. I’d save it and loan it to my teenaged siblings at pretty high rates of interest. This was the late 1970s and early ’80s, when interest rates were sky-high. Then I learned about credit risk!
What’s the first thing you remember buying with your own money?
A K-tel compilation record full of one-hit wonders from the 1970s.
What was your first job?
I sold service-station coupons door-to-door on commission. It was a racket. I quit after two weeks.
What was the biggest money lesson you learned as an adult?
When I was 22, I got ripped off by a criminal gang in Thailand. I basically had to buy my way out of possible captivity with gold, paid for with an American Express card my dad had given me for emergencies. It took me months to pay my dad back, but I knew even then that it’s only money.
She also said her pre-existing notion that private-label food might be lower quality has been challenged.
“I started to kind of recognize that the store brand, private label isn’t necessarily less quality,” she said.
Consumers’ perceptions of private-label foods have improved considerably since the last time interest in store brands surged, according to CoBank, which was around the time of the 2008 recession.
This means the increased share of private-label products in shoppers’ baskets is likely to have more staying power this time around, the report said. Empire Co. Ltd., the company behind Sobeys, FreshCo, Safeway and other grocers, said in its 2024 annual report that it plans to continue growing and enhancing its portfolio of store brands.
In its 2023 annual report, Loblaw noted that customers’ increased focus on value “benefited the Company’s sales due to its strength in private label products, discount banners, and personalized promotions.”
The company even launched a new discount grocery banner this year under its No Name brand.
Grocers not only often get a better margin on private-label products but also see them as a sort of “loyalty program” that can keep shoppers coming back, said Chapman.
He thinks retailers will work hard to keep private-label sales strong through new products, marketing, promotions and shelf space.
According to Statistics Canada, store-bought alcoholic beverages rose in price by 5.9% between March 2022 and March 2023, and the price of liquor in general rose another 2.3% from June 2023 to June 2024.
Why are these prices going up so fast, and how can you enjoy cocktail hour without going over budget? Read on for some intel.
What factors affect the price of alcohol?
Alcoholic beverages don’t just spring fully formed from the Earth. They’re the product of base ingredients, sweat equity and time, plus the other supplies needed to get it to your glass, like packaging, labelling and transportation. These are all subject to the same general high inflation seen globally over the past few years.
For instance, a simple can of beer has a lot of inputs: grain crops (like barley or wheat) and other ingredients (like hops or flavourings), water, aluminum and labels, plus the energy to run the production line. If the cost of any of these items goes up, that’s going to affect the price of beer. That’s not even considering wages, which are a big factor as well. And if you’re buying that can of beer at a bar or restaurant, add on their business overhead and profits, too.
And then there’s taxes. These are hard to sum up, since every province and territory is different, but you can count on the fact that the price of your glass of wine or G&T includes some money for the government. The argument, of course, being that that cash goes back into things we need and use, like health care, education and public services.
Other official policies matter too. For instance, in Ontario, the Liquor Control Board and the provincial government set minimum prices for beverage alcohol. But everyone has to pay federal taxes on alcohol, which currently amount to between $0.04 and $0.74 on a six-pack of beer, $0.54 on a standard bottle of wine and $4.07 on a typical 750-mL spirits bottle. That applies no matter where you’re buying your beverage.
Then there’s climate change. Grapes for wine, rice for sake, wheat or corn for vodka: no matter what crop goes into your drink of choice, it’s being affected by changing weather patterns. A local example: in British Columbia, the 2024 grape crop was almost completely destroyed due to abnormal winter weather. Drought, heat waves and smoke from wildfires are hard on vineyards, too, meaning the more we experience these negative effects of climate change, the harder it’s going to be to make wine.
What about non-alcoholic drinks?
Very low-alcohol versions of beer, wine and spirits have become popular in recent years. But, you might have noticed they’re not exactly cheap either. That’s in part due to the same factors that affect alcohol prices: Raw ingredients, packaging, manufacturing, transportation and labour costs. Then the alcohol is typically removed after the beverage is manufactured, meaning it takes more time and effort than the boozy formula. In other words, this isn’t a simple can of pop: zero-proof takes on beverage alcohol are more expensive to make than the originals.
Shoppers are switching stores or travelling farther for better deals
For some Canadians, saving money on groceries involves switching stores—something the major grocers have taken note of, as they’ve been expanding their discount store footprints to capture demand for better deals.
Some shoppers are travelling a little farther for their groceries, even going to multiple stores to take advantage of all the available promotions, while others are trying to prioritize spending their money at independently owned grocers.
Craig Treulieb in Kitchener, Ont., said instead of doing the bulk of his shopping at Superstore, he has diversified his shopping trip. He now takes a bit more time, hitting up Food Basics and local independent stores.
“We used to not be super concerned about shopping deals and generally found Superstore’s prices to be OK, good enough. And it was convenient doing one shop,” he said.
Treulieb has also signed up for a weekly farm vegetable box, and is buying more in bulk at Costco.
Michael Ianni in Vancouver said he grew frustrated with the prices at his nearby Safeway, and has started travelling farther to go to independent small stores in his area.
“I go and take a nice stroll on Commercial Drive, and I find other stores, and there’s sometimes cheaper prices or comparable,” he said.
“For me, it just feels better to support them. And sometimes if you look, you can find better deals.”
What was the biggest money lesson you learned as an adult?
The understanding of how big a role your identity plays in your finances. Finance is deeply personal and intersectional, and your money is directly impacted by aspects of your identity such as privilege, race, gender, sexual orientation, mental health, disability, systems of oppression and more. The identities you hold will impact how you view, understand, spend and approach your money.
I didn’t fully understand this until I came out as queer and was diagnosed with ADHD. These realizations helped me make sense of a lot of my money behaviours and challenges. For example, I struggled with impulse spending for years, and ended up with $15,000 of high-interest debt because of that. I felt so ashamed of this debt, but I didn’t know that having ADHD makes me four times more likely to impulse spend than someone without ADHD. By understanding who you are, the privilege you hold and/or barriers you face, your lived experience and your trauma, you can begin to change your relationship with money and create a financial plan that makes sense for your life.
Learning this lesson is what inspired me to write a book and start my financial literacy company, Queerd Co., where our approach to financial literacy goes beyond the conventional, giving folks permission to be full human beings—not just numbers on a spreadsheet. At Queerd Co., our goal is financial equity, and every course we create, resource we recommend, space we hold and discussions we lead will aim to take a shame-free and identity-based approach to money.
What’s the best money advice you’ve ever received?
That your financial situation is not your fault, and the shame you feel around money is not solely your shame to carry. I learned this inside of the Trauma of Money certification program, where we spent time examining and unpacking the idea of shame and responsibility when it comes to our money. The reality is that many of us inherit money trauma and learn our financial behaviours and habits from our caregivers. We also have to consider the government policies, financial institutions, and larger societal systems such as capitalism, and how those play a role in the decisions we make and the financial challenges we are subjected to. In the Trauma of Money, we were taught to ask ourselves, “Whose shame is this?” to help call attention to the fact that some of the shame we feel has been placed upon us, despite it not being our shame to carry. This advice really helped me reframe the way I felt about my past financial decisions.
What’s the worst money advice you’ve ever received?
I tell this story in chapter 1 of my book, which is all about finding safe spaces: The first time I went to talk to a financial advisor at the bank, the advisor made a misogynistic comment along the lines of, “When you have a husband, he will take care of this for you.” This was his response when I tried to ask questions about some financial terms he had briefly mentioned. This was horrible advice because: a) it was misogynistic; and b) it was encouraging me to not be in control of my own financial situation. I cannot stress enough how important it is to have financial autonomy, even within a marriage. If you ever find yourself in an abusive relationship, having access to your own money will give you the freedom to leave.
Would you rather receive a large sum of money all at once or a smaller amount regularly for life?
It would depend on the amount. If the smaller amount was enough to cover my monthly expenses, then I would choose that option, because it would give me the immense privilege of never again stressing about paying my bills. It would also take a lot of pressure off my business and allow me to explore more creative pursuits. But if the amount wasn’t enough to cover my bills, then I’d prefer the lump sum. I could actually make more money from the lump sum in the long term by investing it, but the first example would be a better decision emotionally.
What do you think is the most underrated financial advice?
Gamify your finances. This is great advice for almost everyone, but especially for anyone who is neurodivergent. If you can make managing your money fun and enjoyable, you’ll be more likely to actually keep up with it, and have greater success with reaching your goals.
What is the biggest misconception people have about growing money?
That being “good with money” and building wealth is just a math game, and that all you need to do is manipulate the numbers—it’s so much more than that. Creating the perfect spreadsheet, debt repayment plan or investment strategy will never address the root of your money issues. We’ve been taught that if we follow the formulaic system for success, we will be wealthy and happy. But there’s no magic formula for success, because everyone’s lived experience, values, goals and definitions of wealth are different.
With foot-long hotdogs roughly $13 and 515-ml premium draft beers nearing $15, the Sarnia, Ont., duo behind the @coupon.couple account started searching for ways to save.
One of their pals had two words: Dugout Deals.
The aptly-named concession stand by sections 240 and 537 sells ballpark favourites for a fraction of the price. Before tax, “value” hotdogs, popcorn and 16-ounce soft drinks go for $3.49 each, while a 12-oz. Bud Light is $5.79, the Blue Jays website says.
“If you got a hotdog and just a pop, it would be, like, under $7,” said Debarros. “That’s awesome compared to $30 at some of the other stands.”
Researching like Debarros did is just one of the ways she and other sports lovers, festival attendees and concert goers say Canadians can save as the summer event season ramps up and people start to be confronted with eye-popping prices.
AtVenu, a point-of-sale technology company, said the average fan in Canada and the U.S. spent USD$68 on food and beverages at festivals last year, up from USD$65 in 2022. The firm found prices for food items jumped 21% on average, and drinks spiked by between 7% and 20%, depending on their format and alcohol content.
But many eventgoers say there are ways to reduce costs.
Check if you can bring your own food and drink
For starters, some venues, including the Rogers Centre, let you bring in food and drinks, though they often must be non-alcoholic and packaged in something other than glass or metal.
The other day I had to run out to buy cooking oil to make dinner. I knew which brand I wanted because it was a good size and it was cheap—$5 when I bought it about three months ago. I was surprised and annoyed to find out that the same bottle of oil, which was the exact same size and shape with the same type of oil in it, was now $7.
It had gone up $2 in the last three months. Now, that doesn’t sound like a lot since it’s “only two dollars,” which shouldn’t affect your budget. But add in other expenses like the cost of gas, other grocery items and rent, and those “tiny” increases add up. Inflation really makes the wallet hurt.
Lifestyle creep versus inflation
We spoke to two experts to find out how to deal with increases in household spending, in terms of both practical steps and the emotional side. Nearly 50% of Canadians say that money worries negatively affect their mental health, according to an Ipsos survey. First, we need to look at the difference between inflation and lifestyle creep. Inflation is when prices of goods and services increase with a corresponding decrease in the purchasing power of your money.
Lifestyle creep is when your standard of living improves as your income rises and former discretionary or luxury items become expectations. Think having all the entertainment streaming options instead of one or two because now you can afford it.
You can control lifestyle creep to an extent through budgeting and being aware of your spending habits. With inflation, there’s only so much you can control. If prices increase for household necessities, you end up spending more, whether you like it or not.
You can switch to cheaper items to save money, but at a certain point you may be sacrificing usability for price. Think one-ply toilet paper; it’s cheaper but you go through it faster, leading to spending more money. (Also, it doesn’t feel great.)
Since it feels like everything is going up except our salaries, how can you rein in the involuntary lifestyle creep and get some sense of control over your money?
How to avoid lifestyle creep and cut costs
Chantal Chapman, CEO and co-founder of financial literacy education firm The Trauma of Money in Vancouver, says to not let a scarcity mindset sabotage your spending. “If there was a time in your life when your income was low and you really had to restrict [your spending], that actually can lead to compulsive behaviours such as overspending.”
“It comes down to discipline,” says Elke Rubach, president of Rubach Wealth in Toronto. She admits that it does suck, saying, “I think the only blanket advice we can use for everyone is to sit down and do a reality check, because just feeling the pinch isn’t a healthy thing, because then you’re like pinching, pinching, pinching.”
She says one way to counteract the pinching is to check what’s causing it. “Is it actually the economy or is it something you can control? Is it eating out? Or is it that you’re buying groceries but things are going to waste? Are you buying the right things?”
How to save money on groceries in Canada
Another tactic is to shop at the local stores in your neighbourhood, says Rubach. With the Loblaws boycott proposed for May, she says, shopping local is “a very different approach. It’s not a negative. You’re doing the same action, to be clear, but instead of looking at it as ‘let’s screw Loblaws’—because they’ll just bring in technology and fire employees—look at your typical grocer at the corner of the street. They’re a lot cheaper.”
She also says shopping every few days can help keep costs down, especially if you live alone or have a small family. That way, you can plan your meals, reduce food costs and waste, and take advantage of sales.
Chapman says that even if you can afford price increases, try to contain them by limiting your splurges to certain purchases.
She says that while it’s nice and a privilege to be able to afford what you want and need, don’t let that dictate your spending. “You can say, ‘I don’t need to worry about how much I’m spending on my coffees,’ but maybe choose one area versus just applying that to everything if you are concerned about your budget.”
How to save money on clothes
Rubach advocates for second-hand clothing, swaps and hand-me-downs, especially when it comes to children. “There’s no need to buy new things every school year,” she says. “I’m guilty of doing that when my first child was born, spending ridiculous amounts of money on clothes.” Facebook marketplace or local FB groups are a good source for clothes and other household goods. Check your local neighbourhood for clothing swaps.
When faced with inadvertent lifestyle creep, we can revisit our budgets and attitudes to spending—at least until inflation, prices and interest rates slow down.
Spring 2024 outlook on grocery food inflation for Canada
The outlook for food and beverage manufacturers this year is more positive than last year, FCC said, though some sectors still face headwinds amid elevated interest rates and tighter household budgets. “However, population growth and stabilizing—in some cases, falling—input costs are providing optimism for margin improvement for 2024.”
The organization’s annual food and beverage report offers up forecasts for consumer spending, as well as specific food items such as sugar and flour.
What is Canada’s inflation on food?
Canada’s annual inflation rate was 2.8% in February, and grocery prices were one of the main factors pushing it lower. Grocery inflation was 2.4% that month, down from 3.4% in January, as the cost of many items declined year over year. However, slowing inflation doesn’t mean prices overall are dropping. Statistics Canada noted in its latest inflation report that between February 2021 and February 2024, grocery prices rose 21.6%.
How are Canadians dealing with rising food prices?
As they grapple with higher prices, not just on food but on shelter and other daily costs, Canadians have been trying to cut back their spending on food and beverages, FCC said. They have been buying more items on sale, gravitating toward less expensive brands, buying more canned and frozen foods, shopping more at discount retailers and simply buying less food.
“Many consumers say the impact of high interest rates are just beginning to affect their spending,” FCC said.
As shoppers have become more price sensitive, FCC said processors have been responding by modifying package sizing and substituting less expensive inputs.
Canadians have also been cutting back on alcohol, the report said. It forecasts a decline in alcohol sales and manufacturing volumes this year.
Will food prices go down?
The report said some food products are expected to go down in price this year, such as flour, after a sharp increase over the last couple of years. This will translate to lower bakery and tortilla manufacturing selling prices by the end of the year.
Emotion regulation: Engaging deeply in an enjoyable activity boosts your mood and generates positive emotions, which in turn strengthens your ability to manage stress and navigate difficult emotions. It helps maintain emotional balance, which is beneficial when making investment and spending decisions. Being calm means you’re less likely to react impulsively with your money, leading to fewer costly mistakes. This emotional steadiness leads to thoughtful financial choices.
Fulfillment and happiness: Flow can bring enjoyment to what you’re doing, making the activity rewarding. Csikszentmihalyi’s research indicates that flow can contribute to increased happiness and overall life contentment. Budgeting to have more of these moments can lead to lasting life satisfaction.
How money can make you happy
You’ve likely heard that money is a tool. While that’s true, using money as a tool for happiness can be challenging. We attach so many emotions and meanings to money that it can be hard to separate them. However, that shouldn’t deter us from using money to mindfully invest in engaging, joyful activities and experiences that create moments of flow.
How to use flow for a better relationship with money
A musician I know named Greg says he’s always been grounded by music. He was born deaf, and a successful surgery at the age of two unlocked sound for him. He has embraced music ever since. By his early 20s, Greg had learned to sing, write music and play the guitar. He performed at local gigs and on international stages. Yet, as he became more and more successful, accomplishing the stardom he always thought would make him happy, he felt drained by his music label’s relentless push for commercial hits, which diminished his drive for creating artful and meaningful music.
Greg went to Hawaii for a year-long reprieve and rediscovered flow in music. He looked back at his “best” performances, where he felt deep flow states, and recognized that it didn’t happen at sold-out shows. Instead of pursuing commercial success, he focused on making music at private workshops, writing songs for people, and performing at wellness and yoga festivals.
Now, more than 20 years later, Greg’s life is filled with flow moments that involve his music. In Hawaii, he built a life with meaning and purpose. It’s no longer about chasing success, money and big hits.
His new life comes with challenges, of course, especially when it comes to finances. And when I asked Greg if he would change anything, he responded with a big smile: “Would I like more money? Sure, but I wouldn’t change a thing. My [happiness] bank account is through the roof. I have a great life.”
How to invest in self-care and flow states
The takeaways from Greg’s example and Csikszentmihalyi’s research are to integrate more flow states into our lives (and ultimately our finances) by doing the following steps:
Write out the activities you find flow in. What are you doing when you feel in the zone? What captures your full attention? List the activities and think about how to prioritize them in your life.
Budget for flow moments. Dedicate money to these activities you truly love. Think of it as investing in your well-being. Cut out activities you’re doing just because you think you should be doing them.
Be smart with your self-care choices. Balance flow with your need for financial security—they’re not mutually exclusive. Don’t risk essential expenses for flow states. However, you can still evaluate your expenses (housing, transportation, food, etc.) to discover ways to decrease those costs.
Don’t do it alone. Sharing your flow experiences with others can deepen them. Can you join or create a group aligned with your interests?
Reflect and adjust. Just like you do with your annual budget or investing portfolio, regularly check in on your flows. Reassess how your spending affects your ability to achieve flow. Be flexible and reasonable, and adjust as needed.
Why should you care about flow? If you care about your money, you will
When reflecting on our lives, we hope that when our time on this Earth is over, we can say, “I did it. I lived a good life.” Of course, a “good life” doesn’t mean it was easy—life is always full of challenges, obstacles and setbacks. But scientific research shows that the more we invest in our well-being, the more resilience we have during challenging times. Flow states offer us emotional regulation and life satisfaction.
By intentionally spending time and money on areas in our life that bring flow and happiness, perhaps we can experience not just how money makes the world go around, but also how we can use it to sing and dance a little more.
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Living frugally simply means that you’re intentional with how you spend your money.
You’re aware of your priorities and values and what you need to do to obtain those things in life. You can identify the things that are less important to you and therefore reduce your spending in those areas.
So while one person may think another is
“missing out” because they don’t have the newest or most upgraded smartphone,
the other person may not value extensive smartphone features the way that they
value the idea of having money to travel in the future.
I recently had a lesson in frugality when my expensive, popular name brand dryer needed a second repair within the three years that I’ve owned it. The first repair had cost me about a third of what I had initially paid for the dryer.
When the second repairman was finished looking at the most recent issue, he told me it would be less expensive to buy a new dryer than it would be to fix the problem.
I couldn’t believe that to be true, but
the repairman went on to ask me how many of the 17 settings on my dryer I use.
…I think…two?
He then made the extremely valid point
that there’s no use in spending excess money on features that I never
use–especially because all that does is
increase the number of things that could possibly go wrong with the machine.
He quickly convinced me to buy a durable,
affordable, and dependable option that I have found provides me with the exact
same outcome that the last product did. It
dries my clothes.
This is just a personal example of
figuring out what your priorities are and cutting costs where you can so you
can use that money in the future in ways that will benefit you more.
In this article, I will share some frugal living tips that you can incorporate into your life. Of course you don’t need to adopt them all, but hopefully you will learn some pointers here that can help you move closer toward your financial goals.
Planning what your family will eat for the week ahead of time lets you use your current pantry inventory, keep track of your family’s favorite meals, and stick to a budget-friendly grocery list of items you actually need to make your meals.
2. Walk to Work
Save money on gas by walking to work (or
biking) if your commute makes it possible to do so. If not, ask your employer
if you can work remotely from home one or two days a week to save on travel
expenses.
3. Program Your Thermostat
According to the U.S. Energy Information Administration, heating and cooling account for just under half (42%) of home energy costs–and a lot of these costs occur when you’re heating or cooling unused spaces (such as when you’re not home or asleep).
Program your HVAC system to keep your house at
the best temperature only at times when
you’re home and need the temperature
to feel comfortable. This way, when you’re at work for the better half of
the day, you’re not wasting money on utility bills by maintaining a certain
temperature in your home.
4. Plan Your Errands
When you have errands to run, plan your route in a way that keeps your stops all in the same area, allowing you to drive the fewest miles possible.
It’s also a good idea to set aside just one day to run your errands rather than making a lot of smaller trips during the week.
5. Wait Before Buying
If you come across something that you want but don’t need, wait 24-48 hours before committing to buying it. Impulse buying can be a big source of money down the drain, and more often than not, you will decide against making the purchase anyway.
Waiting also helps you prevent lifestyle creep. The video below talks about why lifestyle creep happens and a few examples and gives 7 simple habits to avoid the temptation of this mindset.
6. Get Rid of Cable
It took me a while to take this leap, but what I considered to be a “leap” at first was hardly a small step.
With Netflix, Amazon, YouTube, and all of the other streaming options, I realized I really was never watching regular television anyway. And, even so, there are better things to do with your time.
7. Buy Produce that’s in Season
Buying produce that’s in season will save you money simply due to supply and demand. Out-of-season produce requires more travel, time, and unnecessary expenses to grow in a greenhouse, and those extra costs get passed on to the consumer (you).
8. Use Cashback or Money Saving
Apps
Apps such as Honey, Ibotta and Rakuten can help you get some money back on your everyday purchases. When you couple this with store coupons and plan wisely, you can end up saving a lot of money.
Using cashback or money savings apps can help you get some money back on your everyday purchases.
I use Ibotta, and here are my monthly earnings
thus far. I’m only shopping for myself and one young child, so these numbers could be much higher for
those of you with more people living in your home.
9. Buy “Previously Loved” Items
Most (all?) cities have Facebook “buy, sell,
and trade” groups where you can buy things at a small fraction of the retail
price. This is a great place to look if you’re in the market for furniture,
kids’ toys and books, and even services (such as gutter cleaning or
lawnmowing).
10. For Large Expenses, Aim for
“Mid-Range” Items
This goes back to my whole dryer fiasco. When
you’re shopping for cars, appliances, or anything that you know you will be
using on a regular basis, there is a
difference between being cheap and
being frugal.
Being cheap is buying the least expensive item you can find, however, this often leads to costly repairs due to the low quality of the item, or it becomes a complete waste of money because the item breaks soon after you buy it, putting you back in the position of shopping for it all over again.
Products that are in the mid-range in price
usually have the durability that you’re looking for, but lack the extra
features that you a) don’t need and b) increase the likelihood of something
breaking.
11. Stick to Your Shopping Lists
Whether you’re going to the grocery store or a store like Target or Walmart, stick to the list that you’ve made.
You can use the Cozi app for making lists–it’s free and you can share it with the whole family so you don’t end up buying two of something because more than one person in your family stops by the store.
12. Grow a Garden
Check out what fruits and vegetables can be grown at home and start your own garden where you can literally hand-pick your meals. This is something that you can do that will keep saving you money over a long period of time.
13. Don’t Get FOMO from Sales
I’m actually currently dealing with a great example of this. Several weeks ago, I was in a thrift shop and came across a designer dress for sale with its original price tag still attached.
I tried it on, it didn’t really fit, I personally considered it to be ugly, but I’m also aware that I don’t really understand some of these extremely high-end designers.
Realistically, seeing as it was 98% off on the
thrift store rack, I couldn’t just let it
sit there for someone else to discover.
But I’m
starting to feel like those seven spent dollars…were a waste.
If you see something on sale–whether it’s a major discount or only a little bit–consider first if you would want the item if it were free to begin with before jumping at the opportunity to “save” money.
You might not realize how quickly you go through paper towels until you get down to your last roll and you know you won’t make it to the store for a few more days.
Make initial investments in things like microfiber cleaning cloths, wool dryer balls, and glass food containers to save money in the future on the disposable items that you’re used to buying.
When it comes to the staples in your pantry–flour, sugar, salt–buy the store brand.
Even for over-the-counter medications, just look at the active ingredient in the generic version vs. the brand name and you will likely see that they’re exactly the same, but have a huge price difference.
16. Cut Up Your Credit Cards
Yes, it’s simple to charge things to a credit card today and worry about paying for them later. But when “later” comes around, you’ll realize how much all of those little things added up.
Then, if you don’t have the cash to cover all the small things you purchased–most of which are probably long gone–you’ll end up paying interest.
Avoid using your credit card on a daily basis, stick to using cash to avoid spending money that you don’t have.
If you’re already in debt due to past credit card use, check out Unbury Me, which is a loan calculator that will help you pay off your debts. And, in the future, stick to using cash from the start to avoid spending money that you don’t have.
Implementing a spending freeze every once in a
while can help you make huge progress toward your frugal lifestyle goals. Here is a guide to imposing a spending freeze that will give you a better
understanding of how much money you needlessly spend on a regular basis.
By not spending any money (aside from
necessary bills and food) for a predetermined amount of time, you will be able
to get an idea of just how much you could be saving.
19. Auto-Draft Your Payments
Having your bills automatically come out of
your bank account will help you avoid
late fees if you accidentally miss a deadline. It will also help you save on the convenience fees that are
often charged if you use a debit or credit card to pay a bill.
20. Avoid ATM Fees
Some banks offer a benefit of waiving any charges from using a different bank’s ATM, but not all banks do this.
If you’re not offered this benefit, stick to the ATMs that are directly linked to your bank if you need to make a cash withdrawal. Otherwise, you may end up paying up to $6 in convenience fees for both banks combined.
21. Upcycle
Before getting rid of something that you don’t use anymore, see if you can upcycle it in some way.Here is a gallery of various ways you can upcycle items that you’re no longer using and make them into something both useful and beautiful.
22. Use Online Coupon Codes
Always search for online coupon codes before making an online purchase. If you can’t find one, see if there is a mailing list you can join for the company that will offer you a certain percentage off of your first purchase after entering your email address into their system.
23. Buy a Membership
If there is a museum that you frequent or a
zoo in your area, go ahead and buy a
yearly membership. Even if it seems expensive up front, it will likely
quickly pay for itself if you know you will be visiting the place often.
This will also give you and your family
something “free” to do on days that you don’t have anything planned.
24. Hang Your Clothes to Dry
Whenever possible, use a clothes line or a drying rack to hang dry your clothes. This will help save you money on energy expenses–plus, it is more gentle on your clothes and will help them last longer.
25. Buy Your Own Modem
While this is an up-front expense, buying your own modem instead of leasing it from your internet provider will save you money in the long-run.
26. Check Out YouTube Videos
If something in your house breaks, check out some YouTube videos to see if it’s an easy DIY fix.
I recently saved (what I assume to be) a ton of money by following the instructions of a short YouTube video that walked me through removing a complicated drain stopper on a tub in order to de-clog it. This saves money and–let’s be honest–will make you feel completely capable.
27. Wash Your Clothes in Cold
Water
Using the cold water cycle will save energy (and money) and it isn’t as harsh on your clothes.
Due to advances in detergent formulas and the designs of washing machines, almost all clothes can now be washed in cold water.
Using the cold water cycle has two benefits: It will save energy (and money) and it isn’t as harsh on your clothes as hot water is, so it can extend the life of just about everything you wash.
And then once you started reading it to them, they were less than impressed–and, despite the excitement in your voice when offering to read it in the future, they constantly turn it down in favor of their same. old. favorite?
Aside from giving you free access to what can only be considered to be endless
resources, going to the library also lets you “try before you buy” when it
comes to any book (not just kids’
books) which can definitely save you money in the end.
29. Ask for Samples
If your doctor prescribes you with a
medication that you expect will come with a high cost, ask if their office has any samples that you can try. Sometimes,
they will give you enough samples to last you quite some times before you will
have to fill the prescription.
Not only will this save you money, it will also save you time and effort on those nights you don’t want to cook and are tempted to grab something “to go” at a restaurant. To get started, here is a 8-step process on how to meal plan.
31. Use Less
You probably don’t need to use as much laundry
detergent/shampoo/dish soap as you do. A little bit really does go a long way, so look at the label and see what they
recommend and compare that to how much
you’re used to using.
32. Stock Up
When something is on sale (or especially on clearance), buy as much of it as you can so you won’t have to buy it again for a while in the future.
Often at my grocery store, they will have a “Spend $40, Save $10” deal on paper products, and I always stock up during those sales. That makes the entire purchase 25% off!
33. Don’t Buy Portioned Foods
I know it’s so much easier to buy pre-cut fruits and vegetables and snack-sized bags of chips, but doing so is a lot more expensive than taking the time to portion these things out yourself.
I think we have all realized the cumulative
costs of eating at restaurants on a regular basis. Pack your lunch and snacks for work instead of grabbing something while
you’re out. This will help you improve your health as well as your
finances.
35. Shop Alone
Shopping alone will prevent you from spending extra money.
The more people you bring shopping with you
(mainly children), the more likely you are to spend extra money. They will inevitably see something that
they want that they wouldn’t have otherwise known about–and half the time,
you may give in.
36. Shop Your Pantry
What can you make out of what you already have at home? Use Supercook.com to enter the ingredients that you have on hand and find recipes online that you could prepare right now.
37. Watch Your Oven Use
This is actually a personal pet peeve of
mine–if you have something small that you want to reheat (or even cook for the
first time), don’t use the energy to
heat up your entire oven to do so. If you have a toaster oven that can fit
the item, it will serve the same purpose.
38. Save Your Baby Essentials
After having your first baby, don’t rush to get rid of all of the items taking up space in your house once your baby outgrows them.
Keep toys, clothes, rockers, and your crib for a little while, even if you aren’t planning to have a second child any time soon. You never know what you may decide in the future, and rebuying all of those items is expensive.
39. Only Use What You Need
Turn off the lights when you leave the room, don’t let your water run while you’re brushing your teeth, don’t leave things plugged in that you’re not using. All of these things add up in expenses. (Use an expense tracker to help you budget more efficiently.)
I know
you probably don’t want to worry about preparing your own food when you’re on a
trip, but do your best to eat “in” as much as you can.
Bring snacks with you from home to have for your trip and check out the local
grocery stores wherever your destination is.
…and stick to it. Sites like Mint.com can help you track any money that comes in and goes out.
As of 2016, only 41% of Americans used a budget to manage their finances–and it’s hard to stay on track with your money goals if you don’t know where you stand at any point.
44. Declutter and Downsize
If you got rid of everything that you own but don’t use, would you need to have such a large living space?
Studies show that houses have drastically increased in size since the 1970s–but the number of people living in each of these large houses has decreased. Having a smaller house will result in a lower mortgage payment, as well as lower utility and maintenance costs.
This is something that you don’t want to be
cheap with, but you certainly can shop around for competitive rates. Get several quotes each year for things
like car insurance and homeowner’s insurance.
46. Don’t Buy a New Car
The single worst financial decision” you can make is buying a new car.
Buying a brand new car has been referred to as the “single worst financial decision” you can make. Your car’s value will go down 20-30% during its first year of life. Instead, go for the “barely used” car and save a ton of money.
47. Shop with Gift Cards
You can buy store gift cards at a discounted
rate on sites such as Cardpool.com. The card codes are often emailed
to you right away, so you can use them
the same day you find them.
48. Literally ASK for Discounts
I recently agreed to have a company come out and spray for mosquitos and other pesky bugs every other month.
The price they charge for this service is about $50 per month and I essentially told the person on the phone that I didn’t want to pay that much. So she gave me the service for $35/month. It can’t hurt to ask.
49. Use a Discount Prescription
Program
If you pay a lot for your prescriptions, look into programs such as GoodRx, RxAssist, or Cost Plus Drugs. These resources can help save you a ton of money on expensive prescription drugs.
50. Travel at Odd Times
Try heading out for your vacation mid-week on a Tuesday or Wednesday, as it’s cheaper to fly during the week. Also, look for flights with discount airlines so you can pay less to travel and have more spending money for your trip.
Final Thoughts on Frugal Living
You may think that frugal living will make you
feel like you’re depriving yourself, or it won’t really make that big of a difference.
However, by implementing some of these tips
and creating financial goals and priorities, you will be more likely to start
making even bigger changes. Be intentional with your spending, and then sit
back and watch your money grow.
By taking control of your money and your future, you’ll be able to stay focused and make progress toward living the future that you want. Start with a few of these tips, and once you see how easy they are to adopt, you’ll be likely to start using more.
And if you’re looking for more resources to help you stay frugal, read these articles:
Connie Mathers is a professional editor and freelance writer. She holds a Bachelor’s Degree in Marketing and a Master’s Degree in Social Work. When she is not writing, Connie is either spending time with her daughter and two dogs, running, or working at her full-time job as a social worker in Richmond, VA.
Electricity and hydro savings tip: Are the lights on?
You already turn off the lights when you leave a room or turn down the thermostat at night, right? In addition to that, Barry Walker, residential business development manager for efficiencyns.ca, says to check lightbulb packaging for LED wattage: “For example, it may read seven watts LED and say it’s equivalent to 60 watts of an incandescent light. So you’re only using a fraction of the energy to get the same amount of light.” He says that can save you 25% of the cost of lighting on your electricity bill.
Other cheap and cheerful ways to save on lighting and other energy costs: Buy motion sensors, smart power bars and electrical timers. “These are small things, but they’re inexpensive and they will pay for themselves very, very quickly.”
Electricity and hydro savings tip: Consider a heat pump
The biggest cost on Candians’ electricity bills is home heating, and heat pumps are becoming popular among Canadians because of government incentives to help with the costs. Walker installed a heat pump 20 years ago to replace his oil and electric heating in his 60-plus-year-old home in Halifax. “I’m a good old Scotsman and I kept every bill—my total energy costs dropped 40%,” he says. “I use thermal storage for my backup, and that heat pump is paying for itself three-fold now.”
Water savings tip: Get efficient
Plus, the heat pump can help save on the second biggest cost on your electricity: hot water. “Your payback will depend largely on the volume of hot water your household uses,” Walker says. “If you’ve got teenagers taking three showers a day, then the payback on that heat pump hot water tank will be fairly quick.” If a heat pump is too big of a commitment, you can opt for a more energy efficient hot water heater (even if you rent yours), says Walker.
Also, use cold water detergent to wash clothes and check for leaky taps. If you pay for municipal water, where you pay based on how much you use, that could be a sinkful of money a day going down the drain, he says.
How to save on internet and cable bills: Renegotiate service agreements
Renegotiate or bundle internet and cable services, and examine your home insurance and auto insurance, suggests Scorgie. Also talk about usage, too. You might be in the wrong plan, as things have changed since 2020, and you might not need as much as you did during the lockdowns. Keehn says: “That’s hundreds of dollars a year. People may say, ‘But I’m going to have to sit on hold with the phone company for hours.’ Maybe you will, but just sit on hold while you’re watching Netflix,” she suggests. (Speaking of Netflix, here are the best streaming services in Canada.)
How to save on cell phone bills: Check your bill and cut what you don’t need
Check your phone bill: Has a signup bonus promotion expired because you forgot to renew it, resulting in higher fees? Are you paying for directory listings you don’t use? Those charges add up, notes Keehn. Also, look into family plans and getting rid of services you don’t use, like international calls for example. Also, in your settings, check for the apps that are running in the background, which can eat up a ton of data unknowingly when you’re out and about not connected to wifi.
How to save on car expenses and maintenance
We don’t need to tell you that owning a vehicle is expensive. There’s maintenance, gas and more.
Canadians are already planning to spend less, according to Deloitte Canada’s 2023 Holiday Retail Outlook. This is an annual forecast for retail businesses—but this year, there’s little for them to feel jolly about. According to a survey of 1,000 Canadians, we plan to spend an average of $1,347 over the 2023 holiday season. That’s down 11% from 2022’s forecast of $1,520 and nearly 27% from 2021’s forecast of $1,841. What are we cutting back on this year? Charitable donations (-40%), gifts (-18%) and gift cards (-14%).
Canadians are looking for the best holiday deals—and we’ll switch brands if necessary
Canadians always love getting deals, but we’re going to spend carefully this year and focus even harder on value, says Marty Weintraub, national retail leader at Deloitte Canada. “We’re seeing the money shift to what we call ‘extreme value.’ The top reasons for picking a retailer are: number one, reasonable prices, and number two, value for money,” he says, adding that shoppers plan to spend more at mass merchant retailers and warehouse membership clubs this year.
Other notable findings from the survey, conducted in September:
One in three Canadians are worried about how they will pay for gifts.
48% of Canadians intend to buy only what their family needs this season—up from 41% in 2022 and 35% in 2021.
76% of us expect prices to be higher this year, and 73% of us think retailers are raising prices unfairly.
We’ve become a nation of bargain hunters: 77% of us plan to shop around for the best deals, and 71% of us will switch brands if our preferred one is too pricey.
We don’t mind putting in the legwork—45% of us will visit multiple stores in the same area to get what we’re looking for. Overall, we’ll visit an average of 16.5 stores and websites (up 37% from 2022).
To afford holiday purchases, 24% of us will postpone travel plans, and 23% will cut back on our grocery budgets.
On the brighter side, some Canadians are still finding room in their budgets to indulge a little and to spend according to their values. According to the survey findings:
26% of us will treat ourselves to an experience such as a concert, sports event, trip or spa day.
More than half of us (55%), especially younger adults and women, are willing to spend more for products and services that are sustainable.
We’re planning to spend 11% more money on travel this holiday season than in 2022.
Despite tighter budgets this holiday season, we’re spending more on travel
How is travel spending rising when we’re cutting costs elsewhere? “Post-pandemic, we still have some revenge travel happening this holiday season,” says Weintraub. “Last December, if you went away, it was a gong show at the airport and with the airlines. As a result, some people said, ‘Not for me, I’ll do it later.’ Some of that’s coming back this year, but in the context of inflation hitting travel as well.”
Weintraub himself is taking his family on a trip over the holidays, and he expects to spend more than he would have last year. “I want to provide an experience for my family rather than buy things, and I want to go because I didn’t get to do it in the past couple of years,” he says. “I’m going to borrow from Peter to pay Pauline—take it out of one pocket and put [it] in another—and I’m willing to pay for more it.”
Canadians are worried about debt, high interest and job loss
Deloitte’s findings echo the results of other surveys. In mid-October, the MNP Consumer Debt Index shared that more Canadians are struggling with debt, high interest rates and concerns about job loss. Half of respondents reported that they are $200 or less from being unable to meet their financial obligations.
“There is no mystery as to what is causing Canadians’ bleak debt outlook: it’s getting increasingly difficult to make ends meet,” Grant Bazian, MNP’s president, said in a press release. “Facing a combination of rising debt-carrying costs, living expenses and concern over the potential for continued interest rate and price hikes, many Canadians are stretched uncomfortably close to broke.”
ROHNERT PARK, Calif., November 19, 2018 (Newswire.com)
– Putting something on the back burner may feel temporary. But for some, it can manifest into a way of life. Being lazy isn’t a crime, but it definitely isn’t a mentality that will save anyone money. When it comes to student loans, forgetting or simply failing to recognize their importance can cause individuals to fall behind on payments. Ameritech Financial, a document preparation company, helps thousands of people across the country find potential solutions to overwhelming student loan debt. They skillfully guide clients through the processes of applying for and maintaining enrollment in federal programs, such as IDRs, that can possibly lower suffocating monthly payments.
“Being lazy could really be costing you, and not just when it comes to having to get your favorite coffee drink over making it at home,” said Tom Knickerbocker, Executive Vice President of Ameritech Financial. “What really can drag you down is the compounding of all your lazy activities. If you don’t want to walk somewhere, you can get a taxi. If you don’t want to make dinner, you can eat out. Those small expenses can add up and affect your ability to pay bills like student loans.”
Those small expenses can add up and affect your ability to pay bills like student loans.
Tom Knickerbocker, Executive Vice President of Ameritech Financial
According to the Washington Post, there are quite a few things individuals could be overspending on and just downright being lazy about. The article mentions different ways to save money including the rule of five, comparison shopping, and bringing lunch from home. Follow the five-minute rule by asking, can this be made in five minutes at home? If so, it may not be worth paying extra for elsewhere. Shopping without a list is another mistake that can be grouped under laziness. Without a list there is the possibility of overspending on food that may not be needed. Take the time and write out a list in order to save. How much does it really cost to go get a sandwich from the corner store, instead of bringing one from home? Well, those almost homemade sandwiches sure can add up. For example, if someone spends an average of $10 each workday on lunch, that is about $2,400 annually that could be saved.
The list can go on, but the bottom line is that laziness costs more than previously thought. If someone is already on a tight budget, income-driven repayment plans (IDRs) may be able to give some relief. For student loan borrowers, IDRs allow them to repay their loans based on their income and family size.
“Not being able to pay your student loans because your funds are being funneled elsewhere may lead borrowers to venture off track. In order to stay on track for student loan repayment they may have to evaluate if laziness is partly to blame,” said Knickerbocker. “We are here as an option for student loan borrowers who may need help getting back on track. We want borrowers to know all the options available to them, and know that they have an advocate to assist them in applying for what may be the best repayment options for them.”
About Ameritech Financial
Ameritech Financial is a private company located in Rohnert Park, California. Ameritech Financial has already helped thousands of consumers with financial analysis and student loan document preparation to apply for federal student loan repayment programs offered through the Department of Education.
Each Ameritech Financial telephone representative has received the Certified Student Loan Professional certification through the International Association of Professional Debt Arbitrators (IAPDA).
Ameritech Financial prides itself on its exceptional Customer Service.
