Goals, budgets: Secrets to savings success

Being frugal not a bad thing: Donat

It’s all about setting goals and making budgets, says a Nova Scotia chartered accountant who teaches a budgeting course at Halifax’s Saint Mary’s University.

Debi Peverill says household budgets are crucial to avoid frittering away money on inconsequential things and missing out on those dream vacations, debt-free homes or exciting life experiences.

“You want to have a budget to save money for the things you want. You have to see if where you spend money is where you want to spend it.”

After setting those goals and tracking expenses comes what may well be the toughest part of budgeting, determining what needs to go.

“If they’re saving for a down payment, are they going to pack a lunch and see if they’re ready to do that four days a week to save $80 (on meals in restaurants)?” said Peverill.

That $80 per week, even after allowing for two weeks off work every year for vacations, adds up to $4,000 in savings over the course of a year. That can be a very nice vacation abroad or a trip to Walt Disney World with the family.

Bridgewater, N.S. residents Meghan Donat and her husband Morgan have managed to become debt-free by establishing a budget and goals. Among the many things they do to save on expenses is eliminating the daily spend at the local coffee shop. Instead Meghan makes herself coffee at home and brings it with her. Even just one small coffee shop beverage every day adds up to almost $600 per year.

But developing a realistic household budget can be challenging for many people. Peverill, whose firm is based in Sackville, advises most people to consult with an accountant, pay about $200 for the service, and get the job done right.

“They’re better off seeing a professional than flailing around and trying to do it by themselves,” she said.

There are, of course, online resources. Digital Citizen is one such website which offers up spreadsheets users can fill with their expense data to keep track of spending.

One of Meghan’s favourite strategies is to get deals on top of deals.

“I stockpile coupons,” she said. “I went online and joined Facebook groups of products I like. Then, I go to Superstore. They have a coupon board and I go through the store and find coupons in front of the products and I pick those up.”

By using her credit card to pay for her purchases, she also amasses Air Miles that she uses to get other things.

What kinds of things? Well, three years ago, Meghan’s Air Miles went towards a family vacation to Walt Disney World at Christmas time.