20 ways we cut costs last year

Robb Engen's house under construction in Lethbridge, Alberta. He saved for a 20 per cen downpayment before buying.

Robb Engen

As a single-income household with two young kids we’re always looking for ways to trim our expenses. This past year, we've saved on everything from housing and insurance to investing and shopping. 

Here’s how we did it: 

1.  We avoided CMHC mortgage insurance fees by saving over 20 per cent for our down payment.  This meant waiting to buy our dream home for 18 months while we saved our money, but it was worth it. 

2.  The variable interest rate on our mortgage is at prime minus 0.8, an ultra-low 2.2 per cent. 

3.  We turned down the mortgage life insurance offered by our bank, instead opting for much cheaper term life insurance. 

4.  We reduced our stock trading costs from $29 to $9.99 by combining accounts with one discount brokerage to reach their $50,000 minimum assets threshold. 

5.  We invest in low cost index funds instead of equity mutual funds.  For example, the management expense ratio on TD’s Canadian Index e-Series is 0.33 per cent compared with TD’s Canadian Equity mutual fund at 2.18 per cent.

6.  We use a cash back credit card for our everyday spending and recurring bill payments.  We earned over $500 using the MBNA Smart Cash MasterCard last year.

7.  We use a no-fee chequing account at ING Direct for payroll, debit purchases and online bill payments that can’t be put on a credit card.

8.  We keep a minimum balance of $1,500 in our TD chequing account to avoid bank fees.

9.  We ditched our landline three years ago, saving us almost $40 a month.

10.  We regularly call our cable and internet provider to ask for discounts.  We’ve saved over $300 on our cable and internet bills with this approach.

11.  I’ve negotiated with my employer to pay my cell phone bill, saving me $60 a month.

12.  We go to the library to borrow books and the latest DVD’s and Blue-Ray’s for free.

13.  We use e-post to manage our bills, which helps us to pay on time and avoid late fees.

14.  We make our own home cleaning products for simple wipe-downs and disinfecting using vinegar, water and rubbing alcohol.

15.  The cost of beef and chicken keeps going up.  We started eating a meatless dish at least once a week to save on groceries.

16.  We’ve avoided upgrading our second vehicle - a 14 year-old Hyundai Elantra - that still gets me to work and back.

17.  We dropped collision coverage and increased the deductible on our second vehicle to lower our car insurance premiums.

18.  When I shop online I hunt for online coupons and promo codes.  I had to buy a new battery for my Dell laptop and a quick search for Dell promo codes saved me $15.

19.  We signed up for free samples from Pampers and Huggies before our daughter was born and we use Proctor & Gamble’s Brand Saver site to get coupons for diapers and wipes.

20.  I avoid extended warranty coverage on electronics and other big ticket items.  Our credit card automatically doubles the manufacturer’s warranty.

Courtesy of: 

http://www.moneyville.ca/article/1315066--20-ways-we-cut-costs-last-year