So, you’re looking to save up for your first home; trying to get the 20% down payment together can seem like a bit of an uphill hike.  In this article, we focus on specifically how to tighten your belt and spend less to help you achieve this goal. Spending less money can sometimes appear to be challenging. After all, who spends more than they need to? We only spend money on things we absolutely need, right? ……Wrong.

Where does all the money go?

Realizing exactly where your money is going will help you to put some changes into place to make savings on your outgoings.  For some people, the first step to take when trying to spend less money is to first, figure out where it is all going! Fuel, food, hobbies, coffee… An excellent way to do this is to keep hold of all of your receipts for a given week, or month.  This will then allow you to realize exactly where that extra money is going, and just how you can put measures in place to try and cut back on some of these expenses.  Of course, you need to eat, but is there a better way to do this, so it doesn’t cost you 20% of your wages each month!  If you are spending money on the gym, are you going the gym enough to warrant this expenditure, might there be a pay-as-you-go option that would more cost effective, or, could you take up a hobby, such as cycling or running which wouldn’t cost you a monthly amount? Figuring out where the money goes can help you tighten your belt and spend less.


There is a big different between a “need” and a “want.”

The challenging part is figuring out which is which, but once you have done this, it becomes a lot easier.  An excellent example of wanting and needing could be your work time lunches.  For those of you who eat out for lunch, whether that be at work, at a café, or even a restaurant, it is this type of daily expense that can often add up.  It is a thoughtless way of spending, and by that, I mean only that no thought will generally go into questioning whether lunch or food, is actually needed – of course, it is!  To be successful in your goal of saving for your down payment, you need to change your mindset where this type of spending is concerned and ask yourself the question – is there a cheaper, or more cost effective way to do this.  Making your own lunch can often be a lot healthier, as well as costing a lot less. Work more on needs and less on wants if you want to tighten your belt and spend less.

Put Your Bargaining Hat On!

Whether or not you enjoy haggling, it is an absolute must when you are serious about tightening your belt.  Now, we’re not talking about trying to negotiate the grocery bill, but there is definitely something to be said for asking for a discount on any purchases you make which are considered to be one-off purchases, or for larger items – often just asking the question can bring positive results.  You may have subscriptions running, or be eligible for a reduced rate on a loan, mortgage or other finance agreement.  Sometimes just a simple, “please may I have a lower rate or a discount for my loyalty?” will suffice.  Give it a go! You might be surprised just how easy it becomes to ask that question!

Review Your Transportation Costs

Do you live in the city?  Do you run a car into work? Do you pay for parking and fuel?  Often transportation costs can mount up, and become a significant expenditure.  There are other options!  It may be you work in an office with many people who travel in on the same route; perhaps car sharing is an option.  If not, and you are in the city, it is possible that using public transport could save you both time and money.  Not to mention they are much better for the environment.  Giving up your car and possibly looking at selling it, or downgrading your vehicle to a lower value, lower engine size can help too.

Save Energy – Save Money

Perhaps something we are all guilty of; if you are not using something, then turn it off.  Leaving every single household appliance on standby WILL cost you more.  The price of energy isn’t falling, quite the opposite so this is a magnificent way to ensure that you are able to save money by consuming less energy around the household.  Roughly 10% of the average person’s income is spent on utility bills, so this is definitely worth investing in as reducing the size of these bills can save you a sizeable amount when you add this up over the year.  Air conditioning is another money-sapper.  Having a newer, more efficient unit will help you reduce your bills, as will not using It when you don’t have to.

Call Vertuity Mortgage today at (204) 888-4663

These are some very practical ways that you can implement quickly to help you to spend less, and reduce your outgoings.  In turn, this will give you more money which you are then able to put towards your savings for your down payment, and helping you get closer to owning your first home in Canada.  Of course, you can only tighten your belt so far; it’s important to still be able to enjoy life, and also to be able to strike a balance between spending and saving towards your goal. Tighten your belt and spend less!