3 Easy Changes to Simply Save More Money

Are you looking to grow your savings but don’t have any savings to grow? Here’s how to make more money in 2024 with what you already have.

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Canadians have been going through this economic downturn and uncertainty for years now. After hitting highs back in 2021, most stocks have fallen back. No one can predict the future, and certainly, we’ve seen that in the recent past. But there are ways to stay on top of your finances. And they don’t have to be difficult.

Today, we’re going to look at three easy changes that can simply save you more money and how to create a base investment that will allow you to make more money once you’re saving more than before.

Live lower than your means

So, you got a raise — that’s great! But that doesn’t mean you should go out and book that next vacation or buy the newest iPhone. Instead, it’s alright to put that money aside. It’s alright not to have a ton of posts on Instagram showing your friends all the great stuff you’re doing. And it can seriously save you money.

Instead, take a look at how much money you’re bringing in each month. From there, look at how much you owe each month. Then, consider the 50/30/20 method of saving.

This is where you put 50% of your income towards essentials, 30% towards your lifestyle, and 20% towards savings and debt. That way, you can still save for those great vacations, but in a reasonable way that helps protect your savings.

Fund your future self

Instead of paying your present self, pay your future self first. This means putting that extra cash towards your retirement — and I mean beyond the 20% that you’re already saving. If you get a windfall of any amount, put that towards your retirement, emergency fund, and debts that leave you with higher interest.

This can be difficult, especially when you pay off debts because you’re not seeing that money grow higher in your savings accounts. Instead, you’re merely seeing debts go lower, and it doesn’t feel fair.

But you’re protecting your future because you’ll have less interest to pay. And once it’s paid down, you’ll soon see your savings rise higher and higher.

Stop comparing!

How many of us have looked on social media and wondered, “How can they afford that?” This can lead to the question, “What am I doing wrong?” Yet ask those people travelling the world, and I’ll bet many of them are swimming in debt.

Instead, it never helps to worry about others. Instead, worry about yourself and your own situation. That time spent worrying would be far more useful planning your own future rather than thinking about someone else’s past.

Save and grow

Once you’ve rewired your brain for this 50/30/20 split, it’s a great time to start investing. And that can easily be done through exchange-traded funds (ETFs) — especially those that offer growth and income.

A great investment these days is Vanguard Growth ETF Portfolio (TSX:VGRO). This ETF is meant for, you guessed it, growth. It can easily grow your funds through investments in other Vanguard ETFs — all while providing a 2.02% dividend yield.

Yet part of that growth also comes from a 19% investment in bonds, providing you with cash flow while you see your income climb higher. The ETF is, therefore, a great base as you get into the markets and continue to save.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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