Penny-pinching doesn't have to be painful—here are 7 best ways to save money, right now!

Tried-and-true methods of saving money

1. The 50-30-20 budgeting rule

Creating and following a budget is one of the first and most practical approaches to saving money. The 50-30-20 budgeting rule follows a simple formula, where 50% of income goes to needs (like rent or mortgage and your fixed bills), 30% to wants (entertainment and travel), and 20% to savings and debt repayment. The 50-30-20 budgeting rule makes budgeting, managing expenses and saving much more manageable because it simplifies the math and creates easy guidelines to help you align your spending with your goals, needs and wants.

When you pair the 50-30-20 budgeting rule with budgeting tools like You Need a Budget (YNAB), you can keep track of spending, identify areas for improvement and spend within your financial limits. The YNAB app can be accessed on a smartphone (for smart personal finance on the go) and through the online portal. To help figure out if this is the right tool for you needs, sign up for a YNAB account and try user-friendly interface and easy-to-navigate budget, goal and spending sections for a 34-day free trial. After that, you'll pay USD$14.99 per month or USD$99 yearly to enjoy the benefits of free courses on things like managing debt and how to create a budget.

2. Automate your savings

Automating savings by setting up regular transfers from your checking account to a high-interest savings account (HISA) or a Tax-Free Savings Account (TFSA) can help you save consistently without relying on willpower. Plus, this method uses “out of sight, out of mind” thinking, which many people find beneficial for saving money—and not being tempted to spend it.

High-interest savings accounts that offer comeptitive interest rates and bonuses for direct deposits are a surefire way to make the most out of your contributions. The EQ Personal Account currently has an interest rate of 2.00%, but that increases to 3.75% when direct deposit is set up. This is one of the best non-promotional interest rates in Canada right now. Beyond making you money, you will pay no monthly fees and there’s no minimum balance to maintain. Account holders also have unlimited transactions and free electronic fund transfers, mobile cheque deposits and bill payments. Unlimited free Interac transfers are also included.

3. Cut unnecessary (or under-utilized) expenses

Reviewing your monthly expenses and eliminating non-essential costs can free up more money for savings. To do this, you’ll want to take a close look at:

• Unused subscriptions or free trials that rolled over under your radar
• Do an analysis of your monthly UberEats or DoorDash spending and how much you’re spending dining out
• Shopping for essentials only (buh-bye, impulse purchases!)
• Review how many premium streaming services you’re currently paying for and considering whittling it down to just one or two or rotating them through the year

Even $200 recouped from this section of your regular spending can go a long way when you re-route it into a high-interest savings account every month and watch it grow year over year.

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4. Use a digital money jar

In the digital age, tools like Varo, HyperJar, MoneyJar and QubeMoney offer a modern twist on the traditional cash envelope system you’ve probably seen all over TikTok.

Digital money jars allow users to allocate funds into various spending “buckets” — think fixed and variable expenses, savings and debts — and set savings goals, track expense, and receive personalized financial insights in a secure digital environment. With these modern and ultra-visual digital platforms, Canadians can prioritize savings, control spending and manage finances better.

5. Comparison shop

Before making purchases, use price-comparison websites, promo codes, cashback offers and best deal articles — such as the best stores to price match in Canada to ensure you get the best deal. Apps like Swagbucks, Rakuten, Capital One Shopping and Honey can help you save money by finding discounts and cashback opportunities from various retailers. It may require an extra step, but it’s worth it.

6. Capitalize on cashback and rewards programs

Utilize cash back apps, credit cards with rewards programs and loyalty programs to big on everyday purchases. Many major Canadian banks land fintech alike offer credit cards with cashback features.

While these are a great way to build your savings, there are numerous other ways to earn points on essentials like groceries, gas,and bills. Air Miles, Aeroplan, as well as travel programs like Marriott Bonvoy offer substantial savings in the long run on items you regularly purchase. Not capitalizing on these is a missed opportunity to maximize your savings and enhance your overall financial picture.

• Learn more about the best cashback credit card options in Canada
• Learn more about the best rewards credit cards in Canada

7. Embrace the “sharing economy”

Getting on board with the sharing economy in Canada can provide significant savings on various expenses. For example, utilizing platforms like Airbnb for accommodation, Uber for transportation and Turo for car rentals can result in substantial savings.

By opting for ride-sharing services like Uber instead of owning a car, Canadians can save thousands of dollars annually on vehicle depreciation, maintenance, insurance and gas costs. According to a recently updated report on Ratehub.ca, the average annual cost of owning and operating a vehicle in Canada is $1,387 a month and $16,644 annually.

By utilizing ride-sharing services, Canadians can save a significant portion of this amount each year and re-allocate it to savings, debt repayment or a much-deserved vacation.

Bottom line

Gone are the days of one-size-fits-all financial advice. With Canada's rising cost of living, saving money is more important than ever, and having a smart savings plan can provide financial security and peace of mind. When trying to find ways to save moneyit helps to blend traditional strategies innovative budgeting methods to find the best savings plan that fits your needs and goals. With these seven tips in your toolkit, financial well-being and a more secure future are within reach.