1 . Get low interest credit cards if you carry a balance. You could save hundreds of dollars yearly depending on your credit card balance. If your card has a high interest rate try calling your current provider and ask for interest rate reduction. If they refuse then try to switch to low interest credit cards such as ones provided by Capital one or MBNA Mastercard,  Scotiabank Visa, and so forth. Alternatively try to get a low interest line of credit and pay off the high interest credit cards.

See a comparison below of the total interest will pay on credit cards with a balance of $5,000 and either a 19% or a 13% interest rate. Let's suppose you are making a 3% minimum payment on both.

In the first year - reducing the interest rate to 13% from 19%, based on above amounts, you will save about $293.00 in interest and your total balance will be lower. Try paying more than the minimum balance if possible. This will reduce the ovearall interest cost.

(b) Get to know and utilize benefits certain credit cards may provide such as travel insurance. If you rent a car then check with your credit card company if they insure the rental car - it could save you about $15.00 a day. If you don't carry a balance then use credit cards that offer reward points.

(c) Also, sign up and collect free reward points from stores that offer them and where you normally shop such as optimum card at shoppers drug mart, as well as air miles, aeroplan miles, an so forth. The signing up cost nothing and the points can add up giving you access to free shopping.

*Remember - regardless of where you are at start creating and implementing a plan, one step at a time,  to becoming debt free and building wealth in the long run.

2.  (a)  Install a programmable thermostat and have the temperature lower for those times you are not home, and weatherstrip your doors and windows.

(b) Get into a habit of turning off your lights when you dont use them to reduce electricity costs. Also, replace your incandescent light bulbs with fluorescent bulbs. Install light dimmers if possible. Savings will depend on the extent of use but once you switch the bulbs the savings happen automatically for years to come.

(c) Avoid keeping the water tap running for no reason such as when brushing you teeth! Maximize capacity when using washi ng machine or dishwasher.

3 . Cancel the T.V channels you don't watch. You could save anywhere from $15.00 or more a month, or $180.00 a year. Annual savings add up.

4 . (a) Buy the items you NEED and use regularly in bulk or when they are on super sale. For instance, if an item you regularly use is normally priced at $10.00 and it is on sale for $6.00 then ten such items would save you $40.00. See what items you use the most and buy them when on sale. Savings from several items can add up.

(b) Consider buying generic instead of brand name products. I know brand name medications, for instance, which cost more than generic name though they have same ingredients (check with your physician regarding your medications).

(c) You could also save a lot of money buying certain items during off season times such as after christmas.  

5.   Quit or cut back on lattes, pop, coffee and/or cigarettes. For instance, if you cut back ten cups of coffee at $1.50 a cup in a month, total savings would be $15.00 a month or $180.00 a year. If you regularly drink lattes at $3.50 (or more) then cutting back on ten cups would give you $420.00 a year. Cutting down 2 packs of smokes a month could save you $240.00 a year.

6. Make sure you take advantage, if offered, of employer matched group RRSP's.  For instance if an employer matches up to 2% of your contributions and you make $50,000 then you could get $1,000.00 (of basically free money) a year if you contribute a $1,000 or more a year. The extra RRSP may also give you extra income tax refund. I learned my lesson when I found that, in about 4  years, my wife had extra $10,000 from the group RRSP's for which I had procrastinated to apply for - all I had to do was fill a form and I could have had the extra money.

7. Utilize smart mortgage strategies to pay off the home quicker. This could save you many thousands of dollars in the long run. I have saved a lot of money by looking for mortgage deals (I am a mortgage associate). See how you could save over $50,000 (depending on the amount of your mortgage) over the life of your mortgage, read the section on Buying Your Home and Getting a Mortgage. 

8. Use coupons and internet sites that offer great discounts and deals for things you NEED. Check out Shopping Deals for sites and discounts that may apply to you. Also, buy used from sites such as kijiji.com

9. Shop for better rates on insurance including car and home insurance if possible . I know people in Calgary who have saved hundreds annually by switching to a cheaper insurance company. Make sure you check the details of insurance to ensure you are getting what you need.

10. Shop for a better plan for your cell phone. I recently changed my cell phone plan to Mobilicity and saved about $50.00 a month. In addition to the discount, the Mobilicity plan offered more features than the one I had with a different company.  

11. Consider getting a roomate and pay off your debts - of course you have to take into consideration the pros and cons of renting, who you rent to, correct process, and so forth.

12. Make sure you are maximizing your eligible tax deductions. You could save hundreds if you are eligible. Also, make sure you sign up for eligible tax benefits such as Canada Child Tax Benefits and Universal Child Care Benefits- you can also receive back pay up to a certain amount if you apply late. If needed consider using an accountatnt or a tax software to guide you to maximize your benefits and receive eligible tax returns

13.  Save on your automobile.

(a) If you are thinking of buying a brand new car make sure you consider substantial depreciation and loss of value in the first few years. Consider buying a 3-4 year and older car instead of a brand new one.

(b) According to Kerry L. Taylor the author of "397 Ways to Save Money: Spend Smarter and Live Well on Less"  y ou can save on gas by reducing the amount of weight you carry in your car, reducing unnecessary idle time, avoiding excessive and frequent acceleration reducing speeding on the highway,  and ensuring that you have adequate air in all tires as per factory standard.  Savings can add up.

(c) See if you can learn minor repairs such as changing headlight bulb in you car. I was once charged about $30.00 by a car shop for changing a headlight bulb in my car. It took me less than 5 minutes to change the bulb on my own when I began learning some of the simple car repairs. It's important to have your car inspected by a mechanic on a regular basis but you can save a lot by doing minor repairs.

I will be adding more tips on saving money on a regular basis. Much success and God bless. More to come...

For books on saving money and creating wealth check out the following:

Regards. Al