1. Track and review daily, weekly, and monthly expenses. Determine what necessity means to you and stick to it.

Keeping track of and reviewing your daily expenses is not about depriving yourself of enjoyable experiences; it is about fostering a heathier relationship with money. By being mindful of where your money goes, you help take charge of your financial journey, allowing you to allocate resources where it matters most. This action can help promote financial mindfulness, aligning your spending with your goals, and helping to pave the way for a more secure and fulfilling financial future.

Tip: Look for areas where you might be overspending such as where small expenses could be adding up, and cut down on impulse purchases. For example, I reviewed my subscription services and canceled those I no longer used.

2. Save on interest rates by paying monthly credit lines and credit card balances in full, if you can, so that you avoid carrying large balances.

Credit cards and other forms of unsecured lending provide convenience and can help  build your credit history in Canada when used responsibly. However, they most often have high interest rates and carrying large balances on these accounts can result in rapid accumulation of debt. High interest rates mean that even a modest outstanding balance can quickly increase into a substantial financial debt and can limit your ability to save.

 Tip: Pay your monthly credit card  balances on time and, if you can, in full.

3. Create and stick to a budget and savings plan to help meet your financial goals.

Financial goals need revisiting to help meet life events as they evolve.  This means you need to regularly review your budget and savings plan to assess your progress, make necessary adjustments, and stay aligned with your financial goals.

Tip- Book an appointment with a TD Personal Banker to help you create a budget and savings plan that is suited to your financial goals.

4. Consolidate high-interest debt.

Consolidating high-interest debt means collecting  multiple debts into a single loan where  the interest rate for that loan can be lower than the interest rate(s) that currently apply to each of those debts. This strategy can help simplify the number of payments you need to manage, with the potential to help reduce the total  interest you have to pay. By combining your  monthly payments into one single payment with a lower interest rate, this could free up some of your cash flow that you could consider directing towards  your savings goal. 

Tip– Book an appointment with a TD Personal Banker to review your debt and discuss whether a consolidation loan is right for you.

By following some of these strategies, my friend and I have been able to stay true to our savings goals.