(NC)-High gas and housing prices and a crush of new and tempting luxury goods are siphoning money from Canadians’wallets. What can the average
Canadian do to avoid spending traps, live well and set money aside for the future? Consider finding cheaper alternatives to larger-ticket items for bigger savings today and tomorrow.
According to a recent study by Mackenzie Investments, two-thirds of Canadians (63 per cent) say spending money makes them happy, while only half are “very aware” of the amount of discretionary spending they do on an average day.
“The spending and saving behavior of Canadians today may not be sufficient to support their lifestyle tomorrow,” says John Dale, executive vice-president at Mackenzie Investments. “Monitoring cash flow and discretionary expenses is critical to making wise spending choices that will help you save for a comfortable future.”
Mackenzie Investments offers the following tips to help Canadians save big:
Automobiles
. A little research goes a long way. There are online services that can, for a fee, tell you what the dealer paid for your desired vehicle. Compare the dealer price with the sticker price to negotiate a fair deal
. Do you really need the big, expensive luxury sedan, or would a less expensive, yet stylish alternative suffice?
. Or, if you can live without the new car smell, why not buy used?
Electronics
. It may be tempting to buy the largest LCD television in the store, but consider the size of screen your room can handle. You may save hundreds of dollars and end up with a better fit
. You can then allocate some of your savings to your RRSP
Homes
. Buying a home? Get a pre-approved mortgage to avoid overspending on a home you can’t afford
. A pre-approved mortgage will also help you negotiate with confidence, because you’ve got a budget in mind
. If you’re a first-time buyer, consider dipping into your RRSPs to borrow up to $20,000, or $40,000 for a couple, through the Home Buyers’ Plan. The withdrawal is tax free and you have up to 15 years to deposit the full amount back into your RRSP
Visit http://www.mackenziefinancial.com for more tips on smart spending.
Credit: www.newscanada.com