How often have you wanted something but did not have the money to purchase it? If you are receiving a disability pension or are employed in a low wage job, this probably happens quite often. After paying for the basics – rent, food, transportation, personal needs and clothing, there is usually not much left over.

Here are some strategies that could help you save money for that trip or the new TV that you have always wanted.

• Keep a savings jar or a Piggy Bank available for your savings. You can even take a picture of an item that you are saving up for and tape it to the outside of the piggy bank to remind you why you are dropping money into the bank instead of spending it.
• Open a savings account and deposit a set amount each month or whenever you have extra money. Some banks offer a savings account that requires you to transfer the money to a chequing account in order to take it out. This makes it more difficult for you to spend it on short notice.
• Link your saving to the goals you have set out for yourself in your Person Directed Plan. This will help you achieve your goals as well as making sure that YOUR money is working for YOU.
• Pay yourself first. Make it a habit to always put away a little of your income whenever you get it. Add this item to your weekly budget. This could be a percentage of your income or a flat amount – say $2.00. Put the money in a jar or a piggy bank for a rainy day. If you put away $2.00 each week, you will have $104 in one year.

  Simple savings calculator

  Tip for Staff/ Caregiver: It is never too early to start using this strategy. Over time, this becomes a habit that will serve the person well all their life.

• Save with coupons. When you redeem coupons or purchase items on sale, don’t spend what you save – save it. Put the amount you saved into your savings jar or piggy bank.
• If you get $20 for your birthday, save $10 and spend $10. If you have two extra loonies, save one loonie and spend the other.
• Every evening when you come home, put any coins or change you have in the savings jar.
• Take a look at your daily expenses. That coffee at Tim Horton’s cost you $1.50. Decide how important that coffee is to you. Would you rather have that new flat screen TV? If you put that $1.50 into your savings jar each day you would have $540 in just 1 year.

Check out this Spend-o-meter to see how much these habits cost you

How to be watchful and save money

1. Instead of buying your lunch each day, bring your lunch to school, work or day activity. Put the money you save into your savings jar.
2. It is much cheaper to make your own coffee or tea at home and use that money for something else.
3. Take a look at your regular monthly expenses for cable or phone. Do you watch all the channels you are paying for or could a lower cost cable package be okay?
4. Instead of buying newspapers and magazines, you can read them on the internet or if you don’t have a computer, you can go to the library and read them for free. At the library, you can also take out C.D.’s, D.V.D.’s and videos to watch and listen to.
5. Going out to a movie can be expensive. Plan your own movie night at home with friends by getting a video from the library or renting one. If you have cable television, you can record movies shown early in the week to watch on the weekends. Make some popcorn and enjoy!
6. Board games and card games are an inexpensive form of entertainment.
7. Garage sales and thrift stores are good places to find bargains like board games, clothes, household items, etc. Make sure you check out the items very carefully to ensure that they are not broken or just junk.
8. In the summer, local parks often have free entertainment like concerts and festivals.
9. Check with your local community swimming pools and skating rinks and find out if they have free swimming or free skating at special times of the year like Christmas and March Break. Community centres may also offer free activities.
10. Libraries, museums and galleries sometimes have exhibits that are free. Even if you have to pay for a special exhibit, there are often tickets offered at a cheaper price. Always look for discounts. For example, movie theatres may offer lower ticket prices before noon or on certain days.
11. Dollar stores offer a large variety of items at a low cost. Make sure you check the quality of the item before you buy it. Some things may not be made very well and will fall apart quickly once you use them.

Saving Money When Grocery Shopping

• Do not go to the grocery store when you are feeling hungry because you may buy things you don’t need.
• Try not to buy groceries from a corner (convenience) store because they are more expensive than a regular grocery store.
• Look for weekly specials in the grocery store. Go through grocery flyers to see which stores have deals on the items you need.
• Make a list when you go grocery shopping and only buy the items on that list.
• Coupons can save you money or get you items for free. Purchase items when they are on sale and have a coupon for that item to save even more money. There are many websites on the internet where you can print coupons for food as well as other things. Here are two websites:
  • www.flyerland.ca
  • www.smartcanucks.ca
• Do not buy more food than you can eat, even if it is a good price. No one likes to throw food away.
• Try generic brands of food such as “No Name”, “Equality”, “Selection” or “Our Compliments”. They are often just as tasty as name brands and are often cheaper.
• Look at other brands for the same product. They are often the same quality but cheaper than the most popular brand.
• Look for items on clearance that have been marked down in price. These may be located in a shopping buggy or on a shelf with a sign that says “Marked Down” or “Clearance”. On groceries or food, be sure to check the Best Before Date so that you are not buying spoiled food.
• Buy frozen vegetables. That way, food won’t go bad if it isn’t eaten fast enough after you buy it.
• Most products identify the cost per unit of product (e.g. per 100 grams). This is usually located on the shelf below the product. Use this to compare the cost of different brands of the product.
• In the summer and fall, buy fruits and vegetables from the farmer’s market. They are cheaper and fresher than buying them at a grocery store.
• Shop at a bread outlet if possible for bread, baking etc.
• Use reusable cloth grocery bags when shopping so you don’t have to pay for plastic bags. It is better for the environment.

To budget your money means to plan out how much money you have and how much of your money you spend on certain things.

If we have money, why can’t we spend it until we run out and then wait for more?

Budgeting your money is important because it is a way to make sure that you have enough money for your basic needs such as food, clothing and shelter. It will help you to avoid owing money to friends, credit card companies, or banks. It can allow you to put money away for a big purchase like a vacation, a piece of furniture, or something else that you want or need.

In order to do this, you have to “live within your means” which means you have to make decisions about where to live and where to shop based on how much money you have. You can not spend more money than you have.

Let’s talk first about basic needs and what that means in your life:

• Food → groceries from the store. You need a variety of food types to help you stay healthy.
• Clothing → clothing that is suitable for the weather, your job, etc.
• Shelter → this usually means paying rent. This is something that is very important to maintain and to pay every month. Unless you find a different living situation you cannot adjust this on a daily basis. With food and clothing, you can often shop at a cheaper grocery store, shop for things on sale or buy second-hand clothing to reduce your costs. Not paying your rent can get you evicted and you will have no where to live.

Before anything else, you need to put aside money to cover these costs.

Creating a Budget

Now that we have talked about why it is important to budget your money, let’s look at how you create a budget.

A budget is a document that lists what your income is every month, and what you spend your money on each month. Ask someone you trust to help you plan your budget. You can use the Personal Budget Plan template provided. Your monthly budget should be updated at least once a year or as changes occur.

It is simple, so keep it simple.

1. First, at the top of the page write down all the money you bring home each month. This could be from:
   • A job
   • A disability pension (ODSP in Ontario)
   • An inheritance
   • Help or support from a family member
2. Then, write down everything you spend money on each month. See the article “Knowing where you are spending your money” for easy instructions on how to do this.

   These include both fixed costs (things that cost the same each month, such as cable, rent and phone) and variable costs (costs that will change constantly such as food, going out). Most people remember their rent payment but often forget the newspaper they buy on their way to work each morning.

   Record how much you need for your basic needs. These include rent or other housing costs, food, transportation, clothes and phone. This can be a little more complicated than it sounds. Your basic needs are necessary for survival but how much you spend on those will determine how much money you will have left for everything else:

   • Going out – entertainment, special events
   • Hobbies/sports
   • Special items (household, personal)
   • Hygiene items – toiletries
   • Gifts for loved ones
   • Saving
   • Anything else

   Let’s apply what we know so far to an example:

   Susan has $1500.00 of regular income every month. If Susan found a place to live that cost $1200.00 in rent every month, would that be “living within her means”?

   Let’s calculate to find out: $1500.00 – $1200.00 = $300.00 – that takes care of one basic need – shelter. This would mean Susan would have $300.00/month for everything else.

   So after paying her rent, Susan needs to grocery shop and spends $150.00 at the store on food for herself for the month – this covers a 2nd basic need: food $300.00 – $150.00 = $150.00

   Susan also likes to have lunch with her friend every Saturday at the diner and spends about $60.00 a month from the remaining $150.00 – $60.00 = $90.00

   Winter is coming and Susan needs a new winter jacket and clothes so she spends her last $90.00 on that. This covered her third basic need: clothing $90.00 – $90.00 = 0

   It is now October 5th and Susan has NO more money to spend for the month.

So sometimes, you need to go over these steps again and again until you come to amounts that you are comfortable with. The exercise in step 3 of “Knowing where you are spending your money” might be helpful in figuring out how much to set aside for each of the spending areas of your budget.

The budget of a person who is living on their own or sharing an apartment and is receiving a disability pension (ODSP in Ontario) could look like this:
$20 to $30 per week in personal spending
$75 per week for groceries
$30 per month for laundry
$110 Bus metro pass per month
$30 phone bill per month
$40 cable bill per month
The remaining money is for rent, clothing and savings

Strategies to keep on Budget

Once you have your budget in writing, it is important to put it into action and make it work for you. Here are some strategies to keep you on your budget:

• If you have problems living within your budget, ask for help from someone you trust. Money smarts is a learned skill and there are many ways you can learn how to manage your money. A trusted staff, family member, friend or the Public Guardian would be good choices.
• Even if you can manage your budgeting yourself, it is always good to have someone take a look at your money situation every once in awhile (monthly or every 6 months) just to make sure that everything is going ok.
• Use a ledger or note book daily to record the amounts you spend and the amount of money you have left. This makes you aware of how your daily / weekly money is being spent.
• Be on the lookout for ways to reduce your monthly fixed costs.
  • You can bundle your cable/home phone/cell phone/internet with one provider
  • Look at your package with the provider. Do you need all the services such as call display, call waiting, or all the channels that you subscribe to on your cable?
  • Compare prices with other providers and services. Shop around for the best competitive prices in regards to interest rates and between different cable and phone companies.
• Look for ways to save money on things you are buying. See the article “Simple Strategies to Help You Save Your Money” for ideas you could make use of.
• Take a look at your personal spending. Is something really necessary or is it just a habit? For example: An individual shares a 2 bedroom apartment with another person. For years, both individuals would buy the same newspaper on a daily basis. After this was pointed out to them, they decided to share the cost of buying one newspaper and put the money they saved away for something else.
• Some people need and appreciate a little more structure and help to enable them to save. Perhaps, lock up money in a box for major expenses (i.e. clothing, apartment needs, gifts, vacation) and give the key to a person you trust.
• An option many people use to ensure that their rent is paid is to set up the rent to be paid directly to your landlord from your pension allocation.
• Open 2 bank accounts. On one account (a co-signed account) your staff / parent would also need to sign for money to be taken out. On the other account, a personal spending account, you would be the only person who could take out money. For example, let’s say you have calculated a 4 week supply of spending money to be placed in the personal spending account. After each 4 weeks, the money would be transferred from the co-signed account into the personal spending account. This really encourages you to learn how to budget, but does not put at risk the ability to pay for basic needs such as rent and food.
• If you make bill payments by cheque and have difficulty remembering how to complete the cheque, have someone you trust fill out a sample cheque. You can copy from it each time you need to complete a cheque. If your writing skills are poor, have your trusted helper complete the cheque each time and you can sign it.
• Some stores and credit card companies provide an option to use a pre-paid card. You can only purchase up to the dollar amount that has been pre-loaded onto the card. This could help ensure that the needed purchase is made and the money is not spent elsewhere. A grocery store is a good place to use this.
• Motivate yourself to spend less than the amount you have put into your budget to spend. You want to be happy about how you spend your money. Include in your budget an amount you want to save for the month. Remember to reward yourself each month you achieve your saving goal. Go out for dinner or buy a shirt that you have been looking at.
• Some people find it helpful to use envelopes with different amounts of money that are set aside for different purposes. For example an envelope for groceries, one for clothing and another for entertainment.
• You could buy money orders payable to yourself for your weekly expenses and you could cash one each week. That way you would not have the cash easily available. However, you will need to pay extra money to get a money order.
• You could give your ATM card to a trusted person, without sharing the PIN number and only have access to the card once a week to do your banking.
• Consider opening a savings account that is difficult to access such as an account where you would need to first transfer the money into your chequing account in order to take it out.
• If you have a tendency to spend whatever you have quickly, you could divide your weekly spending money into two or more envelopes so that you are not tempted to spend it all at once. Doing this could give you money to spend throughout the week.

Whatever strategies you decide to use, they need to work for you. Everyone has different habits and ways of doing things. You need to believe that you can change that habit and that you will be better off by changing it.