5 ways to start saving money in Canada

November 14, 2023


✔ Canadian banks offer many types of accounts to help you save money.

✔ Staying focused and creating some good habits, like setting aside money with every paycheque, can help you achieve your savings goals sooner.

✔ A good idea is to automate the money you put towards savings with regular transfers into a savings account.

Canadian banks offer lots of ways to help you save for anything you want. From simple savings accounts with no fees, to tax-free savings and investment accounts, there are many options for you to choose from that will best match your needs. 

Once you’re ready to get started on your savings goal, all you need is a little discipline and some good money habits. Here are five ways you can become a smart saver starting right now. 

1. Pay yourself

If it feels like you’re always paying bills and never keeping any of your money, it’s time to see yourself as someone who also needs to get paid every month, just like the rent and other expenses. This means that with every paycheque you carve out a certain amount first and put that towards savings. You may be surprised by how quickly you adjust to living on just a little less while you develop the new skill of saving money. The key is to know how much money is coming in (your paycheque) and how much is going out (expenses and bills) by creating a budget. 

2. Set a specific goal

Studies have shown that when you write down your goals you are 42% more likely to achieve them than if you don’t. If you’re saving for a new piece of technology, an appliance or furniture, imagine how rewarding it will feel to finally bring it home. Likewise, if you set a goal to save five hundred or one thousand dollars, you can visualize the day when you get to spend it on anything you want or just let it grow. 

3. Keep challenging yourself

Once you’re in the habit of putting money aside for yourself, try to increase the amount from time to time. This can help you reach whatever goal you’ve set for yourself faster. Let your progress inspire you to start setting new and more challenging goals. As you become a strong/ better/ smarter saver, you’ll love the feeling of success and being able to pay for things with cash instead of having to take on debt. 

4. Make things easy 

Sometimes you may forget to transfer money into your savings account each time you get paid and your savings plan can start to lose momentum. Let your bank take care of it for you. Simply open a no-fee savings account at a financial institution other than the one you use for day-to-day banking. By going elsewhere, you’ll be less inclined to tap into that account. Each time you pay yourself first, have the money automatically transferred into this account. 

Lightbulb and gear 

TIP: Open a no-cost savings account and give it a nickname. Call it “New computer” or “Camping trip” or anything that will remind you of why you’re saving money. It will keep you motivated to keep saving and discourage you from dipping into the account.   

5. Keep setting new goals

People who are good at saving money can set any goal and achieve it in time. As you start to earn more, keep adjusting your budget to make room for more of the things you and your family want to achieve in Canada. You will start to see your dedication paying off and begin to enjoy the sense of security and opportunity that comes with having some money in the bank.  

Starting to save money is just one of the many things you can do on the path to a better financial future. Learn more about other smart money habits you can build fast. 

Disclaimer: This content is intended for informational purposes only and does not constitute financial advice on any subject matter.

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