Pain-flation: 9 useful ways to make your money go further

Are you feeling the painful sting of inflation and the rising cost of living?

If so, you’re not alone.

In a world consumed by excess, living frugally is an art form. Learning to make do with less and stretch your resources further can help you live more comfortably and teach you some valuable lessons about life and money along the way.

From responsible living tips to budgeting, having fun, and learning DIY skills, here are nine useful tips to help you make do with less.

Create a detailed budget

Stretching your income starts with taking into account how much you earn and spend. There are a number of free budgeting apps or spreadsheets you can download to help, but a pen, pad, and calculator work just as well.

Start by going through your previous month’s bank and credit card statements. Create separate columns for:

• Regular income/deposits
• Grocery expenses
• Living expenses (rent, mortgage, utility bills, etc.)
• Vehicle expenses (car payment, insurance, maintenance, etc.)
• Fuel costs for your vehicle
• Leisure (eating/drinking out, movie tickets, video games, vacation, etc.)
• Debt payments (credit card bills, loans, student debt, etc.)

Categorize each expense, and list it under each column. Then, use your calculator to determine how much you spent under each category.

Compare the total number of expenses to your total income for the month. This will give you a good idea of where your money is going and help you cut spending in certain categories.

As you go into the future, start keeping track of your receipts as well as your total expenses. Review your spending and receipts at the end of each week, and identify unnecessary purchases you could have avoided.

Start cooking at home

Eating out is expensive. Even a simple fast-food meal (which probably isn’t even healthy) can cost up to $15. Meal-prepping and cooking at home can literally save you hundreds per week. A meal costing you $15 in a restaurant can often be made at home in 20 minutes with $5 of groceries.

If you’re short on time and can’t cook three times a day, try to cook large bulk meals that can be reheated. Some ideas could include:

• A large casserole dish
• A big pot of pasta or spaghetti
• Pre-wrapped sandwiches you can take to-go
• A large pot of soup

Buy in bulk and look for grocery deals

Unfortunately, the cost of groceries has also been rising.

However, you can save money by purchasing everyday necessities in bulk at wholesale stores like Costco or Bulk Barn. Just be careful about purchasing perishable items in bulk, as these could be wasted.

These stores are great for purchasing non-perishable food items or other household necessities, like toilet paper and cleaning supplies.

Shop for lightly used items

You’re always going to pay a premium for brand-new items. However, you can often save up to 50% or more by purchasing lightly used items.

For example, you can purchase lightly used tools, electronics, gaming systems, laptops, and even high-quality designer clothes/shoes on platforms like eBay, Kijiji, and Facebook Marketplace. Local thrift stores and garage sales can also be great places to find great-quality secondhand items.

Take advantage of free fun

Paying for a night out at the club or going to the movie theatre is overrated, especially if it’s hurting your personal finances.

Start taking advantage of free or low-cost activities, like:

• Visiting your local park
• Shooting pool at your local pool hall (usually only costs $1 per game)
• Movie night at home with family and friends
• Board games
• Playing soccer or basketball with friends or a local recreation team

Live green

There’s a lot to be said for sustainable living. It can help you save money and contribute to a healthier planet. Here are some good tips:

• Lower the thermostat when you’re not home
• Take shorter showers
• Turn off the lights when you’re not home
• Recycle glass food jars and use them as cups and food storage containers
• Use food scraps to make your own compost and grow your own veggies
• Swap your Edison-style lightbulbs for energy-saving LED bulbs

Teach yourself useful skills

Hiring a handyman or getting your car repaired at a shop can cost up to $100 per hour just for the labour. Realistically, anybody can teach themselves some DIY skills and fix things themselves.

While you should leave more complex jobs to professionals, consider learning basic car maintenance, like changing your oil or replacing blown fuses. It’s also worth learning some basic handyman skills to fix small things around your home.

Take advantage of government benefits and tax credits

Why not take advantage of free money from the government? The federal government and most provinces offer tax credits and financial assistance programs to lower-income families and individuals. Take some time to research these programs and apply to the ones that you’re eligible for.

Cut out unnecessary subscriptions

Subscriptions can really add up at the end of the month. Before you know it, you’re subscribed to a handful of $15/month services and paying $150 a month in subscriptions that you don’t use on a daily basis.

Pick one or two solid subscriptions that you use every day, keep those, and cut out the other ones.

Plan for the future

Tough times don’t have to last forever. By adopting these practical tips, you can position yourself to start saving money instead of living paycheque-to-paycheque.

Once you start saving, you can invest in your personal education through job skills training, school, or registering for courses that will help you expand on your skills and interests.

It all starts with daily habits, though. Learning how to manage and make do with a lower income will teach you the money management skills you’ll need to manage (and appreciate) a higher income in the future.

Take pride in the process, be grateful for what you already have, and create an action plan for your future!

Written for Daily Hive by Christopher Liew, a CFA Charterholder, former financial advisor, and the creator of Wealth Awesome.