Everyone wants to save more money. But turning intention into action can be challenging, especially when the cost of living rises.

According to numbers from Statistics Canada, the Consumer Price Index (CPI) grew 3.9% in 2023. Only after a 6.2% jump in 2022, it was the biggest change since 1991. The numbers for the first part of 2024 show the CPI growing 2.9% from last May to this May; slowing, but not stopping.

In environments like this, one of the best things you can do to strengthen your financial wellbeing is to start saving.

Why you should start saving

In today's world, where everything feels like it’s costing more, there’s never been a better time to start saving wherever you can. Having a built-up savings account pays off when the time comes to use it, so it takes pressure off your other financial goals.

To combat inflation

Choosing when to borrow money can cost more, or less, depending on interest rates. But did you know that it can also impact how much you earn on your savings? There is an upside to inflation: You can use it to your advantage to save more with a high-interest savings account (HISA).

To save for different purposes

Having and maintaining multiple savings accounts can help you stay aligned to your big picture goals. It’s even better if you have them in different registered accounts that align with your goals. Once you build up a savings account for short-term goals, you can use that and get the most out of your long-term investments.

To set your sights on your golden years

Saving is the ultimate investment: the investment in life’s later years. Whether you’re buttoning up your retirement plans, or just starting to think about it, being proactive about saving will help you stay on track. The actions you take to save today will help build the retirement you dream of—your future self will thank you.

To pay less in interest

Borrowing money or paying with credit can be useful for your bigger financial strategy. But they come with extras you should consider, like interest payments. Having another fund to pay for big-ticket items will help you stay on track and lower how much you’re paying in interest.

To build an emergency fund

A great way to strengthen your financial wellbeing is having a healthy rainy-day fund or emergency fund. Your rainy-day fund covers unexpected expenses, like new tires or a higher utility bill than usual. Meanwhile, your emergency fund is meant to cover 3 months’ worth of expenses if you ever needed the extra income. (But hopefully you don’t have to use it)

How to start saving

Saving doesn’t have to feel like scaling a mountain. These tips can help you save for your goals.   

Step #1: Trim your expenses

Trimming your budget down, even for a little while, can add up quickly; it doesn’t take long for a cancelled subscription that used to cost you $25 each month to save you $100. If there are things you can cut out without seeing a big impact, now is the time to do it.

Take stock of your spending in these areas for opportunities to save:

• Fitness (gym membership, fitness apps, gear, nutrition)
• Personal services (salon services, treatments, self-care)
• Dining out (takeout, delivery, celebrations)
• Streaming media (music, TV shows, movies, audiobooks)
• Fashion (Clothing, shoes, accessories) 
• Entertainment (Sports games, concerts, cinemas) 

Great money-saving habits are easier to sustain when you celebrate your wins. You can spend money on occasional nice-to-haves when you budget room for them.  If you’re making coffee at home to save money, you could have more room in your budget for a latte on the weekend. It’s money spent, but it’s still saving more than grabbing a latte a few times a week. 

Step #2: Incorporate saving into your budget

Now, it’s time to see how much you can save, and how often. The best way to do that is to start budgeting from the ground up and set up a model that works for you.

50-30-20 

The 50-30-20 model takes your income, and divvies it up into three separate categories:

1. 50% to needs: Rent/mortgage payments, transportation, bills, groceries, utilities
2. 30% to wants: Shopping, entertainment, vacations
3. 20% to goals: Retirement, investments, debt payments, emergency funds

If you’re just starting to save, this could be a great method for you to try. 50-30-20 shows you quickly if you’re spending too much in some areas, and not enough in others. 

Budget to zero

Budgeting to zero looks at your income and takes away your expenses, until you get to zero. You give every dollar you have a purpose in your budget, but you don’t necessarily spend every dollar.

This model is popular because it gives you the flexibility to adjust your budget and change where money goes if something comes up. 

Gamify saving 

Why not make a game out of saving? Gamifying your budget might be the key that helps you stay on track. You will probably want to join in on saving more if you make it into a challenge.  

Here are some ideas to get started: 

• Set ‘no-spend days’ and invite friends to join in and keep you accountable
• Challenge friends or family to see who can spend the least during the week
• Find creative ways to stay under a set target for your monthly bills

These aren’t the only ways to budget. Explore other ways to budget that could work well for you.

Step #3: Automate your savings

 It’s easier to save when you don’t even have to think about it. That’s where pre-authorized contributions (or PACs for short) come in handy. With PACs, you can choose how much money you want to come out of your account, and how often.

You don’t have to start with big transfers, either. Time your PACs with your paydays, so you always have money to send over. Just choose how much you can commit to automatically transferring out, and you’ll be on your way.

Tip: Believe it or not, you can automate your savings even further. There are tools that will round up your transactions, such as BIGChange®*, deposit the difference rounded up to the next dollar into a savings account.  

Step #4: Look out for impulsive purchases

No one is immune to making an impulse purchase. It happens, even the best budgeters have bought something unplanned because they couldn’t resist. Sometimes those impulse buys end up being great finds! (Other times ... maybe not.)  

When you know what to look for, you can get ahead of impulse spending before you get to the check-out line. Before you buy something suddenly, wait a beat. Give it a good night’s sleep or even a few days to mull it over to see how you feel about buying it.   

Step #5: Keep your eyes on the prize

Rome wasn’t built in a day, and neither are savings accounts. Building your savings takes time; stay positive and motivated even when roadblocks arise.  

Start with naming your accounts. When your savings account has a personalized name, like ‘New car’, ‘France trip’, or ‘In case of repairs’, it reminds you why you want to save in the first place. 

No great feat should only be recognized when you cross the finish line, so celebrate the milestones you reach along the way to stay focused. Reaching your goal is easier when you visualize it as 10 smaller hills to climb instead of just one long trek up the mountain.  

For example, maybe you’ll decide to go for a nice night out when you hit $1,000 in your account. Or maybe you’ll finally buy that important piece of luggage for your upcoming trip when you reach the halfway point to saving.  Whatever the reward is, it will help you stay focused for the long haul. 

Get saving advice from the experts

Saving can sure feel like an uphill climb. But you don’t have to face it alone. An advisor can give you personalized tips on the best way to achieve your goals–and it starts with a conversation.  We’re here in your community whenever you want to sit down for a chat. 

*Some terms and conditions apply. Only applicable to debit purchases.