With inflation at a nearly 40-year high in Canadapeople are getting creative in their efforts to save money in any way they can.
Students, seniors, families and financial experts shared the “inflationary characters.” Cross Country Checkup Host Ian Hanomansing.
Car parked in front of electric tricycle
Birgit Arnstein is a 75-year-old grandmother and retired nurse from Osoyoos, BC, who recently bought a tricycle and converted it to run on an electric motor. She said she did it to cut down on the gas she bought to drive her car around town. “Going to meetings, picking up groceries, going across town to meet friends for rides — normally I would have driven my car for all of those things,” Arnstein said. WATCHES | How Torontonians are coping with rising food costs:
How do you deal with food inflation?
On the streets of Toronto, several Canadians shared their thoughts on how high food prices are affecting their household budgets. “It didn’t make sense with the price of gas [to drive my car]. It ended up costing about $100 every two weeks. Granted, it’s an investment to get this trick, but it pays for itself quickly without driving my car nearly as much.” Recently, Arnstein also started working two days a week as a dishwasher at a bakery to earn some extra income, he said. “It’s heavy work, but I’ve got some major dental bills, so he’ll help me with that.”
Meticulous meal preparation helps keep the grocery bill down
Kate Schutz in Calgary said meal planning has become a cost-saving exercise for her family. Here are two sets of meal plans, depending on the season, each featuring 21 different dinners served in three week rotation. “I thought we’d get really bored with it, but these are the foods we’d probably be cooking anyway. It just helps us be a little more organized and avoid impulse buys or multiple trips to the grocery store every week,” she said. . Kate Schutz, left, daughter Heidi, center, and husband David, right, stand in front of a calendar of meals in their kitchen refrigerator in Calgary. (Kate Sutz) Schutz estimates it saves them at least $100 a week in groceries. “I think so [my family] like you know what to expect. Everyone knows it’s the third week, for example, “Third Wednesday” tonight. It really helps with shopping and reduces food waste.” Schutz, her husband David Ronneberg and daughter Heidi also rely on a large vegetable garden for fresh produce. They say they shop primarily at thrift stores and reuse things whenever they can.
Earn more, spend less, put some aside
Personal finance educator and author Kelley Keehn says there are three main categories to keep in mind when trying to deal with the rising cost of living:
Reduce your expenses. Track all your spending for 30 days or comb through 30 days of statements and see what you can cut. Call your mobile, internet and TV providers to negotiate better deals. He says the same goes for your home and auto insurance. Keehn recommends renegotiating or waiting on expensive items if possible. Earn more revenue. Whether it’s a second job or a side hustle, Keehn says bringing in more money can be more fun than cutting costs. He says to focus on the skills you have and believe that others will pay for them. Another approach Keehn recommends is renting out a room in your home to a student as another source of secondary income. Increase your budget. Keehn suggests stretching out your mortgage amortization to get a lower payment if you can. You’ll pay more interest in the long run, but a reduced payment will help you weather the storm of inflation, and you can pay more later to make up the difference, he said. If your mortgage is in good standing, you may be able to skip a payment a year without penalty — and that can put thousands of dollars in your hands right now, Keehn said.
WATCHES | Kelly Keehn on how rising interest rates affect Canadians:
What the Bank of Canada rate hike means for you
Personal finance expert Kelley Keehn says the Bank of Canada’s decision to raise interest rates will make life even more expensive in the short term, so it’s time to start paying down debt. Financial journalist Renée Sylvestre-Williams recommends setting aside some money in an emergency fund, if possible. “Depending on which economist you listen to, we’re either in a recession or about to get into a recession and it could be a bad one,” he said. While people aim to hide three to six months of living expenses, a more realistic goal might be to cash a check, Sylvestre-Williams said.
Student housing on wheels
Rising high rent prices in Vancouver have left a pair of international students at the University of British Columbia looking for alternative housing options. Alessio Brandolese and Paolo Ferronato are international students from Italy now living in Vancouver. They are shown here making a circle with their arms in front of a caravan they bought because renting a house was too expensive. (Alessio Brandolese) Italians Alessio Brandolese and Paolo Ferronato ended up buying an RV at a low price on Craigslist. “Otherwise we would have spent all our money on rent and not have any left over to enjoy Vancouver,” Brandolese said. “We’d rather spend money on travel, buying skis and cooking so we can enjoy our time in Canada more.” When they travel, Brandolese and Ferronato try to bring friends with them to split the cost of gas. The couple admitted that while the truck has come with heavy unexpected repair costs, they don’t regret buying it. Their goal has always been to spend on things they enjoy doing rather than just saving money, they added.
“One man’s trash is another man’s treasure”
Darlene Sovran of Sudbury, Ont., helped create an online clothing swap with her friend Holly Louise Graham. Darlene Sovran, of Sudbury, Ont., helped create an online clothing exchange that has grown to include hundreds of users and other household items. (Darlene Sovran) The Facebook group has since grown to hundreds of people, and in addition to clothing, users also trade things like tools and other household items. “People exchange really nice things, knowing that everything will work out – there’s a lot of trust and generosity in the team,” Sovran said. “One man’s trash is another man’s treasure.” In addition to swapping clothes, Sovran, who has an older van, limits the distance she travels and how often she drives to keep her expenses down. Written by Bob Becken. Cross Country Checkup produced by Steve Howard and Abby Plener. Share your “inflation favors” in the comments below.
