I've written ad nauseam in the past about saving money and it's that time again. Trust me - I could do this all day! It's that important. It doesn't have to be that painful though. Just use a little Kaizen!
The Japanese concept of Kaizen translates as "improvement" or "change for the best" and involves small, measured improvements in many different areas.
This approach was instrumental in the astounding Japanese post-war economic recovery and, if applied, it could have a substantial impact on your finances.
I can't quote exact figures on how much you can save in each area, but I'm confident the following ideas could add thousands into your RRSP or TFSA each year and help you reach your goals much faster.
1. Make a list before you go shopping.
We waste too much on impulse buys and overbought, spoiled food.
2. Plan a tasty "big cook" once a month and freeze enough for emergency meals for the following month. If you're running late, you'll have something to warm up quickly rather than being tempted to dine out.
3. Drink our awesome tap water. You'll immediately stop the environmental and economic disaster of bottled water. If you find too much of a chlorine taste, get a simple charcoal filter.
4. Buy generic wherever possible. You'll cut out the huge marketing costs embedded in most brand names.
5. Buy bulk where practical and when possible.
6. Convert as many of your regular bills to be automatically paid from your
chequing account. In addition to avoiding late payment fees, I'm sure you'll find a good use for the time saved! 7. Review your credit cards with a view to reducing fees and
maximizing reward points! It also goes without saying that you should pay your cards in full each month! 8. Cultivate down-to-earth friendships and avoid the lifestyles of the "rich and famous!" Most extravagant lifestyles involve a lot of extravagant debt and that's one temptation that is tough to resist.
9. Review your telecommunications providers, carefully evaluate which features you really need, and grind them for the best possible price. If you have wireless plans on your smartphones, strongly consider cancelling them and rely on wifi hotspots instead.
10. Do an expense audit on your investment portfolios, banking and insurance arrangements. We've often seen thousands of dollars in annual savings as a result. Your financial advisor would be a great resource.
If you're wondering about the finer details, others have walked this path and they write about their experiences every day.
Try Googling "frugal living." Small changes in many different areas could change your life! The opinions expressed are those of Richard Vetter, BA, CFP, CLU, ChFC. He is a senior financial advisor and branch manager with WealthSmart Financial Group/Manulife Securities Incorporated in Richmond.
