2024 promises to be a turbulent year financially. All the more reason to find ways to reduce your expenses. These tips will help you.
To start the year off right, Lucie Dal Molin, budget advisor at ACEF de l'Est de Montréal, recommends taking stock of the last 12 months. Are you in a deficit and need to systematically resort to loans? “In this case, you need to review your priorities and make decisions,” says the consultant.
Here are seven ideas for maximizing your budget and saving.
1. Reduce your electricity bill
To avoid unpleasant surprises during the winter months, sign up for Hydro-Québec's equal payment plan. This means that you always pay the same amount throughout the year.
Installing smart thermostats that can be programmed or even controlled remotely also results in significant savings. Although you have to pay for the purchase and installation, the investment is worth it.
Hydro-Québec also offers dynamic billing packages that save you money by reducing your consumption during peak periods.
2. Negotiate your insurance premiums
“Recently, a person who came to us was able to reduce his car insurance bill from $320 to $111 per month, while maintaining the same coverage,” argues Lucie Dal Molin. How did she manage to do that? By simply looking at competitors' offers and choosing the cheapest one. The same exercise is possible with household contents insurance, although the scope for action is usually limited.
If you don't want to switch insurers, at least try to negotiate a discount or cancel an increase. Also note that you can reduce the amount of the premium by increasing the deductible. However, in the event of damage, you must assume a higher share.
3. Eliminate unnecessary subscriptions
Do you really need to subscribe to two, three or even four content streaming platforms (music, films, series)? Eliminate the ones you rarely or don't use to reduce your payments by tens of dollars per month. Also check your TV package. There may be certain specialty channels that you no longer watch.
4. Check your telecommunications packages
“I often recommend that people check what their actual mobile phone data usage is. Some are surprised at the low usage they make compared to the package they subscribed to,” emphasizes Lucie Dal Molin. Because if you are at home or in the office and rarely travel, you can connect to a WiFi network. See how much you use on average per month and change your plan accordingly.
Most providers also offer discounts if you subscribe to multiple services. It might be worth having everything under one roof, including cell phones for different family members.
5. Sign up for loyalty and rewards programs
Most grocery stores now offer loyalty programs that allow their members to benefit from discounts, promotions, and rewards. Join the offers at the grocery chains you visit.
Also, check that you are taking advantage of all the benefits of your credit card (points exchange, reimbursement of certain fees, etc.).
6. Eliminate your debt
Pierre Fortin, President of Jean Fortin et Associés, recalls that taking on debt is expensive in terms of interest charges. “For example, if you only make the minimum payments on credit card balances each month, the repayment period will be extended enormously and the interest bill will weigh heavily,” he says. To lighten your budget, focus on eliminating your debts, starting with the highest interest rates (credit cards).
7. Buy now for next year
Lucie Dal Molin explains that she bought her son's boots and winter coat in March 2023. Since she started very early, she got them at 70% off! Follow his example and take advantage of the interesting sales to buy clothes, skis, etc. for next winter.
ADVICE
- On a calendar, list the most important upcoming expenses for the next 12 months: vacations, back to school, birthdays, Christmas presents, tire changes, etc. Evaluate the total, divide by 12, and set up automatic withdrawals to a savings account each month. This way you will have saved the money up front and won't have to resort to a loan.
- The motivation to save can diminish over time. That's why it's important not to tighten your belt too much so that you don't give up on your good intentions after a few months. Also, set short, medium and long term goals so you want to maintain your momentum.