Even as the cost of living increases, there are still ways to save money when going out shopping or using credit cards.
CTVNewsOttawa.ca takes a look at some more lessons from CTV Morning Live's Super Savers Week.
How to save on credit cards
Credit cards can be a powerful tool for building your financial profile, but they can also lead to debt if not used properly.
Certified money coach Janet Gray joined CTV Morning Live to offer some advice on the best way to manage your credit cards.
“We are lending money to ourselves,” Gray explains. We are borrowing money from our future and we have to pay interest, unless we pay it back within the reporting period.” “If you can't pay the debt in 30 days, then you're creating debt and potentially paying 20% interest. That's a pretty high interest rate.”
Gray recommends thinking about your financial goals before spending on credit cards.
She said: “Is your goal to save to buy a house? Well, if you're saving to buy a house, you probably need more money than mindlessly spending on more things on your credit card. “Once you're clear on your long-term goals or maybe your short-term goals, that can help you use your card less or use it more responsibly and pay it off.”
Another important thing is knowing what type of credit card you have, and that doesn't just mean knowing whether it's Visa or MasterCard.
“A lot of people have credit cards and say, ‘I don't know if this is the card for me,” Gray said. “'I don't know if it offers any benefits or perks. I don't understand the statement or when I have to pay.' There are a lot of unknowns, but they think it's a free way to spend, and it's really not. Learn about what you already have and then you can see if you need anything else or not.
Credit card companies offer many offers to entice you. Gray says to know in advance why you want to use a credit card.
“Do you want cash back? Do you want to collect travel points? Do you want reward points? Some people just want the lowest minimum because they only use it for transactions,” Gray said. “People who travel might need more travel insurance. That kind of thing.”
Credit cards can both help and hinder your credit score, Gray says.
“Of course, if you have debt, you can lower your credit score,” she says. “And before giving up a credit card you've had for a long time for another one, you might want to think twice about it because part of your credit score is that you already have a credit card and use it responsibly.” over a long period of time, so be sure, before you make changes, to check the possible impact on your credit score.”
Gray said a credit card is a necessity in today's economy, but it's important to use it wisely.
“I don't think you can really function without a credit card. Get a credit card, use it responsibly, and then also monitor your credit score so you have it ready sometimes apply for larger purchases like car loans and mortgages.”
How to find deals when shopping
Avid shoppers can find ways to buy their favorite items without breaking the bank.
Founder, investor and speaker Mallory Rowan joined CTV Morning Live to share some of her tips on finding the best deals.
The first tip is to use cashback or discount apps.
“There are a lot of cool programs and apps you can use, especially browser extensions if you're browsing on a laptop… Rakuten is a great choice,” says Rowan. , where they offer refunds for many sites”. “There's also one called Honey. I love Honey because it finds discount codes on the internet for you. You don't have to go to Google to find it yourself. It also tracks prices, so if there are certain products If you're determined to be flexible about timing, it can tell you whether it's at its peak or if it's actually its lowest point.”
Next, choose your bank card strategically.
“Some of them have really great cashback programs, some let you collect a ton of points and then actually use them on purchases, and some have cashback programs with specific retailers”. “Koho is a great example. They have specific retailer programs like Sephora, Dyson, even Ticketmaster and Expedia, where you can get about 3% back.”
Waiting for big sales also helps.
“There are always predictable days like Black Friday and Boxing Day,” she says. Sometimes during the year, like spring or off-season for some products. I also like to track sales by signing up for emails or following them on social media.”
Setting up a group chat with family or friends who are also looking for bargains can help you save more money and you can help them too.
Next is selling your old items. This will put a little extra cash in your pocket.
“It's a great way to get organized and really works with your budget,” says Rowan. “It feels great if you want to buy something and you've covered it with things you got rid of. Another option is to find that extra source of income, a side hustle just to fund the account their expenses.”
Saving is also a hot trend.
“There are so many great thrift and consignment stores in Ottawa,” says Rowan. “There's a great online game called Hide and Seek that I recommend you try. Also, consider swapping clothes or products.”
