Written by Danielle Kubes

Friday, April 26th, 2019

It's tough to read story after story about Canadians doing big things with their money, like paying off $50,000 of student loans, or saving a $200,000 down payment for a house in Toronto or Vancouver.

Most people don't make enough money to save much. The median after-tax income in Canada for a single person is just $28,200, according to Statistics Canada.

With that income, it doesn't seem like it's possible to put money in the bank. But it is possible to save on a lower income without eating pasta every day or walking everywhere.

I know, because I did it on a $30,000 salary, and there were years when I was either working for non-profits, or doing a combination of free internships, freelancing and bartending, and I still managed to put away 15 per cent of my income.

Here Are 3 Ways I Saved 15 Per Cent of My $30,000 Salary:

1. Opened a TFSA and Made a Budget

A person making $30,000 annually is likely to bring home around $2,000 a month after taxes. I automatically transferred 15 per cent, about $300, into a high-interest TFSA every month.

That's money I refused to touch. I pretended it didn't exist.

After that, I had about $1,700 left in my account to live on per month. I built my lifestyle around this figure: $800 for rent and electricity, $250 for food, $80 for phone and internet etc.

It was doable. I had enough money for a place to live, food and going out money, but I couldn't overdo it.

2. Slashed the Big Expenses

Personal finance experts love to blame $5 lattes as the reason you can't save, but that's not it.

If you can slash your big expenses, you can cut hundreds of dollars instead of $5. Rent and cars are likely your biggest expenses.

I was able to get by using public transportation, so it meant I didn't need a car. As for rent, I lived near a transit line away from the downtown core and got roommates. It gave me financial flexibility.

3. Planned for Future Spending

In my monthly budget, I earmarked $100 for “future spending."

This was for my emergency fund, which I kept separate from my TFSA. I kept it in case of major one-time or annual purchases. I actually had three separate savings accounts, and I nicknamed each one based on what they were for: wedding gifts, moving expenses and a car, which I intend to buy someday.

By planning not only for my long-term savings goals, but also for my shorter-term spending, I was able to save uninterrupted and also enjoy my life without feeling guilty every time I wanted a latte.

Watch Your Savings Grow

If you manage to save $300 a month, you'll end up with $3,600 in just 12 months. If you do the same for two years, you'll have $7,200. By following this plan for three years, you'll have $10,800! In three years, I could have one-third of my annual salary saved.

By saving 15% of my salary every month, I've given myself peace of mind about my financial future without too much short-term pain.