Inflation desperation: Say goodbye to these everyday things to save money
More money, more problems, right? Canadians may disagree.
From groceries to gas to going out, everything is a bit too expensive despite the decrease in the inflation rate to 2.8%, according to Statistics Canada.
We talked to an expert on how you can save money in Canada. Aaron Guillen from finance non-profit Better Business Bureau, BC and Yukon, weighs in.
Drive less – or not at all
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Guillen suggests that keeping your old ride may be more economical than buying a new one. “I would highly recommend people not try to buy new cars at this moment. It’s a volatile market. There’s not enough supply to go around.”
He also recommends that if you are leasing your car, buying it out may be a better option since the price for that car was set before the high inflation set in.
Transiting may be an even better option if you’re punctual.
“I definitely was a big driver before. Now, I’ve had to adjust my driving. I have definitely transited to downtown [Vancouver] to work instead of drive because gas is still kind of pricey, and I just don’t want to pay that extra fee,” Guillen said.
But if you drive less than 5,000 km per year, ICBC offers a 10% low-kilometre discount on Basic, Extension Third Party Liability, and Collision coverages.
Vegetarianism is good not only for your gut but also for your wallets
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If you are vegetarian or thinking of turning into a quasi-herbivore for a few nights a week, it may bode well for your piggy bank. Prices of meat and fish have increased dramatically in the last year, according to a report from Statistics Canada.
Weekend night outs may need to turn into weekend stay-ins
Another good idea may be to ditch the takeout and meal prep as much as possible.
Guillen suggests “doubling or tripling the recipe” to extend the shelf life of your grocery and to “pair that with some rice or some noodles” to save a decent amount of money on the grand scale.
Only go to stores that are worth your money
We’ve all been there when we’ve tried something new to “treat ourselves” and instantly regretted it because of a bad experience.
Being experimentative with businesses, especially when you have limited disposable income, can leave deep holes in your pocket.
“The best way to avoid losing money during hard economic times is by making sure you’re doing your research before you make your purchase,” Guillen suggested.
One way of doing this is to look up a business you want to try on the BBB website to see if they’ve been vetted to avoid scams and fraud.
This can be especially helpful if you’re making big purchases like furniture or appliances.
Maybe we’ll just stick to our regular Tim Hortons drink.
Plan a budget
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This may look like plugging out your appliances, doing a full load of laundry and giving up smoking and alcohol for some.
We know you’re tired. We are too. But once you are comfortable with your level of discomfort, you can start budgeting.
“If you haven’t set a budget, that’s okay. It’s not the end of the world,” Guillen said.
Inflation affects everyone differently, which means budgeting also looks different for everyone. “If you are a smoker and you’re eating steaks and you’re driving everywhere that you need to be every single day, the way your budget is going to look is going to be much more different from someone who’s maybe biking everywhere and transiting everywhere.”
He suggests the 50/30/20 rule in which 50% of your cheque goes to your needs, 30% to your wants, and 20% to your savings.
And if you’re not able to save, it is not your fault. It is much more likely that your purchasing power has decreased due to inflation.
“If the $50,000 that you were paid last year is not the same value going into this next year, [it is] because inflation has caused all of these prices to go up. So your purchasing power has lessened,” Guillen said.
Do you have any tricks to save money? Let us know in the comments.
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