The Bank carries out monetary policy by influencing short-term interest rates to stimulate or slow the economy down. It does this by adjusting the target for the overnight rate on eight fixed dates each year.
Your variable rate mortgage, line of credit and/or student loans are all based on the Prime Rate. This is your personal update from Mortgage Broker Claire Drage and our team at The Windrose Group on the latest Bank of Canada announcement.
As we all know, the cost of living has been on the rise due to various factors. However, instead of just discussing the issue, let’s focus on some actionable facts that can help you improve your monthly cashflow right now.
Here are a few tips to help you manage your finances amidst rising costs:
1. Create a budget: Having a budget in place can help you keep track of your expenses and identify areas where you can cut back.
2. Reduce unnecessary expenses: Take a look at your regular expenses and see if there are any areas where you can cut back. For example, consider cancelling subscriptions or memberships that you don’t use often.
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3. Rotate streaming services (!!): If you have more than one service, look at rotating them and plan your viewing. If there’s something that you definitely want to see on Netflix, for example, subscribe for a month, then the following month subscribe to a different service like Crave. You can also threaten to leave shortly before your subscription renews – many providers will offer you a more lucrative deal if you suggest you are going to leave.
4. Look for ways to save on bills: Similar to the previous tip, it’s important to shop around for better deals on utilities, insurance, and other bills. Negotiate with service providers to see if you can get a better rate.
5. Pay annually: Like most things, paying annually rather than monthly will save you money.
6. Use coupon apps: There are many apps available that offer digital coupons for grocery shopping. This can help you save money without having to search through paper flyers. There are also free tools like Honey that can scour the web for any and all available deals.
7. Don’t be wasteful: Planning your meals ahead of time can help you save money on groceries and reduce food waste. Take a look at your freezer and pantry to see if you have any food that needs to be used up. Planning meals around what you already have can help reduce grocery bills.
8. Consider alternative transportation: If you live in an area with good public transportation, consider using it instead of driving. This can help you save money on gas and car maintenance.
Remember, every little bit counts when it comes to saving money. By implementing these small changes, you may be able to improve your monthly cash flow and reduce financial stress in these difficult times.
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