Most people understand that having an emergency fund is a smart financial move. It provides a cushion for unexpected expenses and helps you avoid debt. However, there’s a big difference between knowing that you should have some savings, and actually building that financial safety net. Although the idea of building savings can seem overwhelming, it’s not as difficult as you might think.
If $5,000 feels like a stretch, don't worry. Every journey starts with one step, and we’ve put together 15 down-to-earth, practical ideas to help you work toward that milestone—bit by bit, week by week. Pick a few that fit your lifestyle and values, and remember, small changes add up to big impact over time.
1. Create a Budget and Take Control of Where Your Money Goes
A budget reflects what matters most to you. Start by tracking your spending for a month. Then, intentionally plan where your money goes. Aim to reduce spending in just three areas—such as dining out, subscriptions, and impulse buys—and you could save hundreds each month.
Estimated savings: $100/month = $1,200/year
2. Automate Your Savings
Set up an automatic transfer from your chequing account to a high-interest savings account each payday. Even $50 a week adds up fast—and makes saving effortless.
Estimated savings: $100/biweekly = $2,600/year
3. Cook More, Eat Out Less
Preparing meals at home is one of the most effective ways to reduce costs; it’s also much healthier. Batch cook, plan ahead, and consider a weekly “pantry challenge” to use what you already have. A recent trend has seen people refusing to go to a restaurant until they’ve eaten everything in their freezer. Make a game out of it!
Estimated savings: Cut two takeout meals/week = $40/week = $2,080/year
4. Cancel Unused Subscriptions
From streaming services to forgotten app renewals, it’s easy to let subscriptions accumulate. Review them regularly and keep only what you truly value or use regularly.
Estimated savings: Eliminate three services = $30/month = $360/year
5. Use Your Local Library
Books, audiobooks, movies, educational resources, and even craft kits—for free! Embrace the power of sharing and borrowing.
Estimated savings: Two books/month vs. buying = $40/month = $480/year
6. Purchase Second Hand
Whether it's clothing, furniture, or sports equipment, choosing second-hand items through thrift stores, swaps, or community groups supports sustainability and can significantly cut costs.
Estimated savings: Average of $100/month = $1,200/year
7. Carpool or Take Transit
Driving solo every day is costly. Explore options to share rides or use public transit, even just one or two days a week.
Estimated savings: Fuel and maintenance = $20/week = $1,040/year
8. Pay Down High-Interest Debt First
Carrying balances on high-interest credit cards can drain your finances. Focus on paying those down as a priority, then redirect those payments to savings.
Estimated savings: Avoiding $100/month in interest = $1,200/year
9. Take a Look at Your Bank Fees
Review your banking services to ensure you're not paying unnecessary fees. Depending on your needs, the smart choice might be the more expensive account, because it means you won’t pay for additional transactions. You might qualify for an account with lower fees based on your age, or other circumstances.
Estimated savings: $10/month in fees = $120/year
10. Negotiate Your Bills
Call your phone, internet, and insurance providers to ask about discounts, bundling, or better rates. A 30-minute conversation can often yield savings.
Estimated savings: $25/month = $300/year
11. Shop with a List (and Stick to It)
Whether it’s groceries or hardware, impulse purchases add up. A list keeps you focused and reduces food waste too. In fact, some people find ordering groceries online for curb-side pick up saves them money because it eliminates temptation in the store.
Estimated savings: $20/week = $1,040/year
12. Try a “No-Spend” Challenge
Pick a month (or even a week) where you only spend on essentials. It builds awareness, curbs habits, and can give your savings a healthy bump.
Estimated savings: $100/month = $1,200/year
13. Make Gifts Instead of Buying Them
Homemade baking, preserves, crafts, or flowers from your garden can mean more than anything from a store—and they cost much less.
Estimated savings: Gift budget reduced by $200/year
14. Use Community Resources
Look for free events, workshops, tool libraries, or community kitchens. These resources foster connection and reduce costs.
Estimated savings: One resource used /month replaced = $50/month = $600/year
15. Be Energy Conscious
Turning off lights, unplugging devices, and lowering your thermostat by one to two degrees can reduce your utility bill with minimal effort.
Estimated savings: $25/month = $300/year
Saving $5,000 in a year is absolutely possible with a combination of small changes and intentional choices. At Kindred, we can help you set savings goals, make a plan, and choose tools that align with your values. Until July 31, you can receive $100 if you complete our Financial Health Score Calculator and meet with us to discuss your results. Book an appointment today.