397Ways
TOSAVE
MONEY
SpendSmarter&LiveWellonLess
KERRYK.TAYLOR
CREATOROF
SQUAWKFOX.COM
ToCarlRussmann,mypartnerandsupport
inallthings,includingwriting.
Contents
Cover
TitlePage
Introduction:MoneyMatters
PARTONE:BigDecisions
CHAPTER1:Renting
CHAPTER2:Homeownership
CHAPTER3:FinancialChoices
CHAPTER4:Shopping
PARTTWO:HomeManagement
CHAPTER5:HomeMaintenance
CHAPTER6:Energy
CHAPTER7:Cleaning
PARTTHREE:RoombyRoom
CHAPTER8:Kitchen
CHAPTER9:LivingRoomandDiningRoom
CHAPTER10:Bedroom
CHAPTER11:Kids’RoomsandBeyond
CHAPTER12:Bathroom
CHAPTER13:LaundryRoom
CHAPTER14:Garage
CHAPTER15:OutsideYourHome
PARTFOUR:MoreWaystoSave
18WaystoSaveonYourNextFamilyVacation
11WaystoSaveonYourPets
5Easy,HealthyFamilyDinnersfor$5
Month-by-MonthMaintenanceChecklist
HardwareStoreShoppingList
GetStartedNow!
Resources
ACKNOWLEDGEMENTS
Copyright
AboutthePublisher
INTRODUCTION
MoneyMatters
Believe it or not, you have money. It’s hard to see it, but hidden in among tax bills, mortgage or rent payments, bags of groceries, debt repaymentsandallthemyriadcostsofdailylife,there’smoneywaiting tobesaved—youjustneedtoknowwheretolook.
Andthat’swhatthisbookisfor:totakethechallengeoutofsaving
moneybyshowingyouhundredsofpainlesswaystospendsmarterand
savemoreforyourselfwithoutscrimpingorpinchingpennies.I’llshow
you how to avoid the traps we all fall for—buying slick brand-name products,watchingthebankdingyouwithfees,shellingouttoomuch
forshelter,gettingzappedbyenergybillsandfeelingthepinchatthe gaspump—andpreventthesehugecostsfromerodingyourhard-earned
dollars.I’llshowyouhowsimpletrickslikeraisingdeductiblesonyour insurance, shopping smartly online, switching banks and buying more foods with less packaging can help your savings add up to thousands annually.You’llseehoweventhemostbasicswitches,likechangingthe wayyoudolaundryorhowyoupreparemeals,cansaveyouhundreds
withouteventrying.Itmightbehardtobelieveyourlifecouldbefull livingonless.Butitcan.AndI’llshowyouhow.
InmyownlifeI’vediscoveredthatsavingmoneyisfunandsomewhat
addictive. I came from a family who valued saving, so when I found myself in a whole mess of student debt after university, I decided I neededtogetoutofitasquicklyaspossible.Bymakingsimplechanges, rethinking which costs mattered in my life and picking up a whole bunchofeconomicalnewhabits,Inotonlydugmyselfoutofdebtinsix months but went on to save my way to a six-figure portfolio—and budget-friendlylivingjuststuckwithme.Oncemydebtwasgoneandas
myearningsincreased,mycost-cuttingwaysmeantIwasspendingless
on unimportant things, leaving more for things that mattered to me. I startedmyblogatsquawkfox.combecausefriendswantedmetoshow
themhowIcouldpossiblyliveonlessbuthavemoretoshowforit,and Idiscoveredalongthewayhowfrugallivingisnotonlyprofitablebuta lotoffun.Iwrotethisbooktosharethesethriftytipsandtechniquesso youtoocanfindyourlostmoneywithoutsacrificingwhatisimportant
toyou.
The book is divided into three parts. Part 1 covers your biggest expenses—shelter, financial choices and shopping habits—and shows
youwhereyourmoneygoesandhowtogetitback.Part2revealsthe
sneaky expenses you don’t see every day and gives you the tools you needtomaintainyourstuff,poweryourhomeandcleanforless.Part3
takes you on a room-by-room tour of your home, giving you the blueprinttosavingseverywhereyoulive.
You’vewaitedtoolongtosaveyourmoneyandkeepmorefromyour
paycheque.Readonandfind397waystosavemoreandlivewellon
lesswhilehavingfun.Youmayjustlaughyourselfallthewaytoyour
no-feebankaccount.
PARTONE
BigDecisions
Theplaceyoulive,thewaysyoubankandthestuffyoubuyallhavea
hugeimpactonhowmuchyouhaveleftattheendofthemonth.Itmay
soundobvious,butfindingwaystocutbackinareasthathavebecome
ingrained habits like housing and banking can be difficult. But it’s amazingtoseehowrethinkingthesecorechoicesineverydaylifeand
making a few smart money decisions can reap big savings in a short time.Readontoseehowyoucansavethousandsofdollarsonhousing
costsandfinancialfees,andlearnnumerousshoppingtacticstohelpyou savemorewhilespendingless.
CHAPTER1
Renting
Renting can make you rich. That’s the kind of statement that runs againstalmosteverythingoursocietytellsusaboutpropertyownership, butit’strue.Undertherightcircumstancesandwiththerightstrategies, renting can be one of the thriftiest decisions you can make—and, becauseshelterexpensesaccountforsomuchofourmonthlybudgets,it
canbeabigwaytosave.MostpeoplewouldbesurprisedtoknowIbuilt up a six-figure portfolio and paid off $17,000 in student debt while renting a modest basement suite in Vancouver, B.C. I had more than enough money for a down payment on a condo an hour outside of Vancouver, but I made the decision to continue renting to save more money.Myreasonsforrentingwerebasedonhardfinancialfactsrather
thanemotion.
The cost of real estate where I lived was, and still is, astronomical whencomparedwiththerestofCanada.Atthetime,asmallcondofar
outsideofthecitywasaround$300,000,withcondofeesrangingfrom
$300 to $500 per month. With my rent being a mere $600 a month including heat, cable and laundry, the choice was clear: given my location within walking distance from work and my ultra-low rent, I couldsavethousandsayearbynotpayingmortgageinterest,condofees, propertytaxandtransportationcosts.Andthat’sjustwhatIdid:Ilived in my rented apartment and squirrelled away savings—much more in savings,infact,thanIwouldhavegainedinhomeequity.
Manybankers,realestateagentsandmortgagebrokerswouldlikeyou
tobelievehomeownershipisthebestpathtowealth.Butrentingcan
have huge advantages for those who pay low rent because they have either made housing sacrifices or live in a rent-controlled building.
Rentingalsooffersflexibilitytothoserequiringaplaceformonthsora few years. It’s a lot easier and less expensive to give notice on an apartmentthanitistosellahouse.
&nbs
p; Ifyou’relookingtorentahouseorapartment,theCanadaMortgage
andHousingCorporation(CMHC)suggestsyourmonthlysheltercosts—
includingrent,electricity,heat,waterandmunicipalservices—shouldbe less than 30% of your before-tax household income. This calculation doesnotincludethecostsofrentersinsurance,parkingoramenitieslike cable, phone and Internet access. So before pounding the pavement lookingfortheperfectrental,addupyourlivingcostsandconsideryour levelofincome.Itmakesnofinancialsensetorentaplacethatleaves youwithlittlesavingsattheendofthemonth.
Ifyou’vemadethedecisiontobearenterratherthanahomeowner,
therearecommonwaysyoucansavemoneyonrent.
Rentlessapartment. Rentershavemanyhousingoptions:high-rise and low-rise apartments, townhouses, condos, detached homes,
basement suites and duplexes. As a general rule, units on upper-level floorscostmorethanunitsclosertotheground—orunderit!Sosteer
clear of penthouses and opt for the ground level in buildings.
Downsizing your apartment can also save you hundreds a month,
becauseasmallerspacecostslesstorent.Rentingasmallerspacehas
the added benefits of reducing your energy costs and requiring fewer furnishings.
BOTTOM LINE: A modest rent reduction of even $100 per month saves you $1,200 a year. Multiply this by three years and you’ve saved$3,600,pluscompoundinterest.
Get a place with utilities and amenities included. Basic monthly rentisagivencost,butsometimesyoucanfindaunitwithexpensive
utilities like heat or cable included in the price. Not having to pay a separateheatingorcablebillcouldsaveyou$60amonth(or$720a
year).Rentingwithperkslikeparkingcanalsosaveyoubigbucksifyou liveinamajorcityandneedaplacetoparkyourcar.Rentalswithon-site coin-free laundry can save you upwards of $40 a month, and the convenienceofnothavingtosearchforlooniestogetyourundiesclean ispriceless.
BOTTOM LINE: Turn up the heat and park your car for less by renting an apartment with utilities and amenities included in the
monthlyprice—andsave$100permonth.
Checkutilitycostsandconnectionfeesbeforerenting.
Many renters find the cost of connecting utilities a shock to their pocketbookwhentheymoveintotheirnewplace.Hookingupaphone
runsabout$35,cablecancostupto$60,andfeesforhydroandInternet add up. Before signing a rental agreement, find out which utility companiesservicethebuildingandcontacteachcompanytodetermine
the average monthly cost. Knowing in advance what your monthly
utility bills amount to could save you from renting a place that’s too expensive to heat in the winter. Also, don’t be afraid to ask utility companiestowaiveconnectionortransferfeesorgiveyouadiscount—
competingbusinesseslikeBell,ShawandRogersallwantyourmonthly
businessandmaycutadealtogetyouontotheirserviceplan.Ifutility companies are unable to cite monthly costs, try asking the previous tenantsforaverageutilityprices.Keepinmind,though,thatutilitybills canvarydrasticallydependingonindividualusage.
BOTTOM LINE: Doing a little research on monthly utility costs couldsaveyoufromrentingaplacethatistooexpensivetoheat,
while negotiating for lower connection fees could save you
hundreds.
Rentclosertowork. Rentingclosertoyourplaceofemploymentcan saveyoufrompayingforadailycommuteorbuyingacar.Lookingfora
place within walking or biking distance is the most frugal scenario, keeps you fit for free, and will save you time on your commute. Who doesn’twanttospendlesstimestuckintrafficorwaitingforabus?
BOTTOMLINE:Paying$100moreamonthinrenttolivecloserto
workcansaveyouthousandsayearintransportationcosts.
Negotiate monthly rent and yearly increases. Asking prospective landlordstoreducetherent,evenbyaslittleas$20amonth,canadd
uptohundredsinyearlysavings.Ifthereisahighvacancyrateinyour area, be sure to negotiate hard in a renter’s market because landlords willbecompetingforyourrentaldollars.Havingagoodrentalrecord
with excellent references can also bolster your bid for a break on
monthly rent. But keep your eye on yearly rent increases as well and negotiatetokeepyourrentinlineattheendoftheleaseifyouwantto stay.Beingaclean,quietandprompt-payingtenantmayhelpconvincea
landlord to freeze rent rather than risk an empty unit or an unknown newtenant.
BOTTOMLINE:Don’tletincreasingrentsdeteryoufromaskingfor
a discount—even $15 a month adds up to an extra $180 in your pocketattheendoftheyear(enoughtocovermorethanaweek’s
worthofgroceries).
Get a written tenancy agreement. Always get the rental rules in writingbeforemovingin.Understandhowlongyouarerequiredtostay,
how much notice is required to end the tenancy, the landlord’s obligationstomaintaintheproperty,andthedepositcosts.Knowingthe rules in advance can protect you from disagreements and unexpected rent increases. Landlord and tenancy laws vary from province to province,sogetfamiliarwiththetenancyactthatwillapplytoyou.In someprovinces,you’llbeentitledtoanyinterestearnedonyoursecurity deposit—checkyourlocalregulationsandthenmakesureyourlandlord
paysup!
BOTTOMLINE:Beingfamiliarwithyourlegalrightstodaymaysave
youbigdollars(andfrustration)inthefuture.
Getaroommate. Gotanextrabedroominyourapartment?Reduce
yourrentalcostsbyabout50%byrentingorsublettingthespareroom
inyourapartment.Usetheroommate-findingsectionsonwebsiteslike
kijiji.ca and craigslist.ca to post your classified ads for free. Before acceptingaroommate,checktomakesureyourlifestylesarecompatible
and that you both can deal with the other’s schedule. Setting up a writtenagreementwithroommatesisalsoagoodidea.Ifyouliveclose
to a college or university, consider renting a room to a student or a youngprofessional.Studentstendtospendlotsoftimeinclass,making themanidealabsenteeroomie.Sharingspacesavesonutilitycoststoo, sincebillscanbesplit.
BOTTOM LINE: Renting out a spare room could save you 50% on yourrentalandutilitycosts:splittingthecostofa$1,350amonth
rentalsavesyouawhopping$8,100ayear.
Invest in renters insurance. Becoming a victim of theft or losing yourvaluablestowaterdamagecansetyoubackthousandsofdollarsin
property loss. Spend your dollars wisely by investing in renter’s insurance. A renter’s policy can cover personal property as well as personal liability (in case you are sued for property damage or bodily injury). Before you call for a quote, calculate how much property protection you require. Do you have $25,000, $40,000 or $100,000
worth of valuables? Do you require additional insurance for camera equipment,abikeorjewellery?Takeaninventoryofyourpossessions,
listingeachitem,whenyouacquireditandthepurchasepriceorcurrent value.Don’tjustthinkbig-ticketitems!Inthecaseofafireyou’dneedto replace everything, from socks to computers. Totalling up the value of theseitemswillgiveyouaroughideaofwhatyourpropertyisworth—
andyoumaybesurprised.Keepingreceiptsandp
hotosofyourproperty
off-siteinasafetydepositboxcanhelpyouifyouneedtomakeaclaim.
Youcanstorerecordsforfreebyemailingphotosandscanstoawebmail account. Also, ask your landlord for details about the rental property, includingroofcondition,typeofheating,andtheframeconstructionof the building. Insurance companies want to know the details of your building and the risks to them before offering insurance. Insurance discounts can be found through employer programs or your post-secondary alumni association (if you’re a graduate). Other lower-cost policiesareavailablethroughRBCInsuranceandTDInsurance.Asking
foraquoteisfree,andcoverageoftenbeginswithin24hours.
BOTTOM LINE: Protect yourself against property loss by getting renter’sinsurance.A$20amonthpolicycouldsaveyouupwardsof
$20,000.
Keepyourrentalclean. Livinglikeasloborcausingdamagetoyour landlord’spropertywillcostyouyourrentaldeposit.Keepingyourplace clean and caring for appliances like stoves and refrigerators will help yourecoverthemaximumwhenyoumove.Readthefineprintinyour
lease about painting, changing pictures, cleaning carpets and dry cleaningdrapes—youmayberequiredtoreturnthespacetoitsoriginal
state, which doubles the cost of painting if you decided to paint a
formerlybeigeplacebrightpurple.
BOTTOMLINE:Takecareofyourapartmentaccordingtoyourlease
agreementtorecoupyourfulldamagedepositandsavehundreds
fromrestoringtheplacebacktoperfection.
Know when it’s time to buy. While buying a home may sound contrarytotheadvicegivenatthebeginningofthischapter,youmaybe intheperfectsituationtoseizeanicepieceofrealestategiventhesize of your down payment, the location of the home and whether the housingmarketfavoursbuyers.Whenthesefactorslineup,youcangain
financiallyfrombuyingahomeinsteadofrenting.Forexample,assume
397 Ways to Save Money: Spend Smarter & Live Well on Less - PDFDrive.com Page 1