How To Save Money Fast

It’s important to keep a nest egg for unexpected expenses, such as home repairs, car repairs or dental bills. Beyond that, having money in savings can positively impact your well-being.

According to the 2023 Financial Stress Index published by FP Canada, money-related stress is on the rise, with 40% of Canadians surveyed cited money as their top source of stress, up from 38% the year before.

However, 34% agree that saving more money is likely to reduce financial stress. It’s easy to see why:  The more you have stashed away, the easier you can rest knowing that if you lose your job or find yourself in an emergency, you have the funds to get through it.

There are ways to slowly save money without sacrificing your lifestyle, and then there are ways to save money fast. If you need to build your  savings account balance quickly, follow these steps.

1. Create a Budget

Budgeting is the first step to saving money. List your income and current expenses—print out your bank statements if needed. Categorize your purchases to see how much you spend in different areas.

2. Cut Spending

Next, comb through each spending category to determine where you can cut back the most. If you need to save money fast, you’ll probably want to target nonessential spending first—categories like shopping, dining, memberships, entertainment and gifts—as these expenses can be sacrificed more readily than fixed expenses like housing and car payments.

3. Earn More

If you can increase your income while cutting back on spending, even better. Negotiating a raise and picking up a side gig are two of the fastest ways to earn more money.

4. Change Your Lifestyle Habits

This can be tough to do but it’s highly effective—and rewarding. Eliminating expensive habits such as smoking, drinking, impulse shopping and gambling can save you hundreds or thousands of dollars per month.

5. Switch to a Better Savings Account

Check to see if your current account earns interest, and if so, how much. You may save more by switching to a high-yield savings account.

6. Curb Impulse Buying

Avoid going to malls and stores where you know you’ll be tempted to make purchases, and unsubscribe from your favourite brands’ promotional emails. If you start feeling too restricted, you can “shop” online without spending by creating vision boards on Pinterest and starting wish lists on your favourite retailers’ websites. Shopping your own closet and hitting the thrift store can also scratch the itch to shop without the substantial spending.

How To Save Money Fast on a Low Income

If you have a low or fixed income and making more money isn’t an option, there are still ways to save money fast.

• Pay yourself first. After you’ve created a budget, decide how much you’re going to save from each paycheque and have it automatically deposited into your savings. Then comes the most important part: Don’t touch it.
• Do a no-spend month. You can still pay your bills, but during a no-spend month, you’re not allowed to spend any money on nonessentials. Make a game of it to stay motivated.
• Reduce utilities. Minimize your heating and cooling expenses by adding or removing layers of clothing. Take shorter, cooler showers. Unplug electrical items when not in use, and switch to LED bulbs. Seal any air leaks around drafty doors or windows.
• Consolidate and eliminate debt. High interest rates on credit card debt makes it difficult to get ahead. Look into debt consolidation loans to see if you can qualify for a reduced interest rate or lower monthly debt payments. Consider using a balance transfer credit card to pay off debt faster.
• Do-it-yourself. Instead of spending on oil changes, home repair projects or manicures, learn how to handle these tasks yourself. Look online for instructional videos and helpful DIY tips online showing you how to fix or make just about anything, often using items you already have around the house.
• Ask for help. Depending on your income, where you live and your living situation, you may qualify for government assistance programs like the Canada Child Benefit or Canada Dental Benefit.

How To Save a Lot of Money Fast

Budgeting and cutting expenses only gets you so far. If you need to save a lot of money, additional sources of income like the ones below speed up the process.

• Obtain a higher-paying job. This could mean asking for a raise or promotion at your current job or applying for a new job. Now that it’s easier to find remote work, you may not have to worry about commuting or relocation expenses.
• Start a side hustle. There’s never been a better time to start a side hustle. Gig economy apps, like those that offer rideshare and food delivery services, make it easy to pick up extra work on your schedule.
• Sell unwanted belongings. Consider selling anything you don’t use regularly. You can sell just about anything online through sites such as eBay, Poshmark, ThredUp and Facebook Marketplace.
• Rent out your space. Sites like Airbnb and Vrbo let you rent out a bed, while Hipcamp lets you rent out campsites on your land and RVshare lets you rent your RV. If you live in Toronto, Edmonton or Calgary and have an unused parking space in your driveway or side yard, you can earn passive income through SpotHero. And if you have a pool or hot tub, Swimply allows you to rent it out by the hour.

Saving money fast usually entails minimizing your spending. Here are some specific ways to cut costs that can make a big difference.

1. Drive less

Consider whether selling your car and switching to public transportation, ridesharing, biking or walking makes financial sense. If not, consider driving less to save money on gas and tolls—and possibly even car insurance. If you don’t drive much, switching to pay-as-you-go car insurance (currently only offered by CAA) can be more affordable.

2. Minimize housing costs

Can you downsize by selling your home or finding a less expensive place to rent? Depending on interest rates, refinancing your mortgage may also help you cut costs.

3. Cut recurring expenses

Consider eliminating subscriptions, streaming services and gym memberships from your budget. For entertainment, host home gatherings, look for free events in your area and hit up free museums and libraries. Stay fit by exploring the outdoors or doing in-home exercises. You can also look into to prepaid phone plans and more affordable internet service.

Bottom Line

There’s no one perfect way to save money. But with a combination of the above tools and practices, you may save more than you think.

Whether you’re facing a life-changing event or simply funding a new goal, saving money can be fun, rewarding and liberating. It helps reduce clutter, cognitive load and anxiety. Look at saving money not as a chore but as a way to gain control of your finances and your life.