How to Start Saving Money - Step 1
I love to save money, I know who doesn't - everyone wants to save money, but I really enjoy saving money. Saving money gives me this strange high that is intoxicating, almost more than purchasing things. The night my son was born I fell asleep reading a book about RRSPs and my friends said that my son was so bored he decided to come out! My saving money obsession started when I decided to stop spending money on things we didn't want to and start spending it on the things we did want to. For awhile I would just blindly pay bills, obviously not outrageous bill amounts, but bills for car insurance we had set up years ago and internet bills that were established when we first moved in and I made a decision to tackle how much money we actually were spending monthly and annually to run our home and our lives and if there were any potential savings.
The first step was to figure out exactly what bills we were paying. Sometimes you forget what you're paying for each month - a gym membership you never use, Netflix, health insurance, etc. Money can easily flow in and out of a home so together, we made a few categories to figure out all the bills we were paying. Some categories were:
House, Health, Car, Pet, Hobbies, Insurance and Banking bills.
To get you started here are a few sub categories to think about:
Mortgage, Condo Fees, Property Tax, House Insurance, Enmax, Direct Energy, Internet, Cable, Netflix, Cell Phone, Car Insurance, Registration, Pet City Registration, Gym memberships, Season Tickets, Life Insurance + any additional insurances (Critical, Individual Disability, etc), MasterCard or Visa annual fees, and bank account fees.
These subcategories are just a jumping off point you may rent, not own a car or have other expenses but a few things to get you thinking.
See where your money is going and then we will tackle how to start saving it!