Stretch your hard earned dollars .....

Our government taxes us on everything, first on our incomes and then again on our expenditures. Our progressive tax system takes a 50% cut out of any additional dollar you earn if you are in the highest income bracket. Plus, every dollar you spend, another 13% goes to the government in the form of GST/PST.

Here are some areas where you can save money.

Coupons – I am probably classified as a "less desired" consumer type in the world by large companies. I use coupons with a passion. Initially, it felt embarrassing to pull out a wad of coupons and search through them while waiting in line at the cashier. However, the amount of money saved over the years has added up. My annual “savings” add up to an average of $300 – let me know if you think it is not significant. I use coupons for free food, $2 off Pampers, $1 off Tide, two for one entrees at restaurants, buy one get one free, double air miles, bonus points etc. The best are coupons that offer free product for us to try – some examples that I have come across are disposable shavers, dishwashing detergent, sample food, cleaning and hair care products. I was nicknamed coupon king in university, but I saved a lot of money especially during the critical years immediately after school with a pile of debt and entry level job.

Loyalty/point programs
I participate actively in several loyalty programs like Air Miles, Aeroplan and Futura. Over the last decade, the amount of points that I have collected has enabled me to redeem the following:
Over $1000 in Dominion/A&P gift certificates via collection of AirMiles
30+ car washes (Air Miles and Esso points)
75,000 Aeroplan points (enough for a few flights within North American)
$500 in Futura dollars to put into an RESP for my daughters
$100 in Baby bonus gift certificates from Dominion (sorry, not available anymore)
$750 in Sears Club certificates
$50 Gift certificates from Bay and Zellers collecting Bay points.
$75 Shoppers Drug Mart points etc....

The loyalty points were collected buying things I was going to buy anyways. These are guaranteed; all they need is a little work on your part. In the past decade, my estimated savings are over $3,000 in loyalty rewards ~ $300 per year or $600 (pre-tax income).

Rewards credit card
Another guaranteed way of saving money is to use a credit card with rewards. I get 1% Canadian Tire money when I use my Canadian Tire Mastercard. It adds up! My monthly Mastercard statement comes in on average around $1600 – an average monthly rebate of $16 per month or $172 per year. These rewards do not cost me a single cent and there is no annual fee. Just remember to pay your balance off and never carry a balance, the interest rates that the credit card company charges will wipe out any benefits and more.

In addition to coupons and loyalty points, I always try to maximize from all directions. I look for a store sale, use a coupon, whip out my loyalty card and then use my rewards Mastercard. Wait, that’s 4 saving opportunities.