Smart money moves for single-income households
Groceries cost more. Gas prices seem to always be up. And bills aren’t getting any cheaper. If it feels like your paycheque is having to stretch thinner and thinner each month, you’re not alone. The rising cost of living is putting a strain on the wallets of most Canadians and this is especially true for single-income households.
Whether you’re supporting yourself, a partner, or a whole family, managing money on one income takes planning, creativity and smart habits – and we’ve got tips to help you make each dollar go further.
1. Set a monthly budget
Think of your monthly budget as your 4-week financial roadmap. It’s there to help you plan ahead, avoid costly detours and give you room for the occasional (guilt-free) splurge.
Tip: A good budget shouldn’t limit you. It should feel manageable, remove unnecessary guesswork and help you get a full picture of your expenses.
2. Spend smart and cut back on nonessentials
Cutting back doesn’t mean removing all fun from your life. But it can mean challenging yourself to make a change. Start by looking over your last credit card statement. Where is your money actually going? Subscriptions you don’t use, impulse buys you don’t need and costly takeout orders are the usual suspects. These can eat away at your money and get in the way of your long-term financial goals.
Tip: What happens when there’s no wiggle room? We get it. For many people, there isn’t anything left to cancel or change that’ll suddenly free up a ton of money. The good news is, there are still little everyday changes that can add up to more money in your pocket. To learn more about them, check out our top tips on how to save money when it seems impossible.
3. Grocery shop with a game plan
Now that you’ve got your budget and know how much you can spend on groceries, it’s time to make that money go further. Before heading out to the store, make a list and a promise to stick to it.
Tip: A lot of stores offer price matching. While making your shopping list, use apps or local flyers to compare prices and plan your savings ahead of time.
4. Build an emergency fund
Everyone can benefit from building an emergency fund. It’s not just a nice-to-have, it’s a safety net that’ll be there for you if you lose your job or have to stop working. Small, regular contributions (even just $10) add up over time and can really pay off in the long run should life throw you a curveball.
5. Boost your income
Side hustles are a good way to use the skills you already have to bring in some extra cash. Whether it’s freelancing, selling handmade goods, or picking up the occasional dog-walking gig, you can turn that talent or hobby into an income stream. There are tons of different options out there, so don’t be afraid to brainstorm and get creative.
6. Have fun on a dime (or none)
Who says having fun has to mean spending big? Swap expensive nights out for potlucks, game nights, free outdoor concerts, or cozy movie nights in. If you have kids, don’t overthink it or feel like you need to plan and pay for big expensive outings. There are plenty of free and affordable options out there. Local libraries have more to offer than free books! They often have video game and console rentals, board games and family-friendly events. Outdoor activities like hiking or trips to the park are also a great way to unwind, explore and enjoy nature.
Tip: If you’re lucky enough to live near one, all Canadian national parks offer free admission to children under 17.
Want to learn more about managing your finances? Check out our top money-saving tips and ways to manage financial stress.
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