If you could save all the money that you earned then your future will probably be rock solid, but that is just wistful thinking. You can’t avoid expenditure all together. Even if you don’t spend money on unnecessary things, you will still have to spend them on essentials like food, house rent or mortgage, fuel etc. to name just a few. But if you are careful and conscientious about it then you can save quite a lot of money.
Never fall behind on payments
There are some monthly expenses that are fairly constant; rent, mortgage, school fees, monthly savings premium, EMIs etc. you should always make sure that they are paid before the due date. This way you can avoid any late fees or penalties. You can automate most of the bill payments and similar things so that the money gets deducted right from your account and you don’t have the hassle of remembering dates. If you are contributing in Knowledge First Financial or other RESPs then do it in a monthly basis as well.
Budget like a pro
Budgeting can actually help cut down on expanses. Managing money is not a skill that comes to everyone automatically; most people learn it only over time. And budgeting wisely is a great way to ensure that there is no unnecessary drain in money. Keep an account of your every expense; utilities, food, rent, maintenance, bills, taxes, debts etc. this will help you evaluate if your money is being spent wisely or not.
Cut back on non essential expenditure
In other words don’t spend on impulse. If you do feel the need to buy a few non essential items every month, then allot a fixed amount on your budget for that express purpose and don’t overspend. If you find it hard to control your impulse to spend then just remember that you still have far to go to reach the $50,000 mark in Knowledge First Financial RESP that will fund your child’s education. The money you are spending towards these unimportant things could go to that fund instead,