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5 ways to save money during inflation

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Families across Canada are feeling the hard impact of inflation, with the cost of groceries, fuel, and utilities all increasing this year. And while the rise of prices will likely continue, the worst part is that nobody knows how long it will last or how high prices could go, meaning Canadians have to cut their discretionary spending and look for ways to save money wherever they can.

To help you cut back, here are a few ways you can save during this period of inflation.

Save on everyday purchases

First and foremost, it’s important to create a budget to not only define your expenses, but track where your money is currently going. It’s easy to lose sight of your spending, which can make this a tricky process, but start by going through your bank and credit card statements from the past couple months and categorize your purchases into three categories:

  • Essentials: these are things like groceries, rent/mortgage payments, utilities, childcare, insurance, etc. Things that you truly can’t go without.
  • Nice to haves: these are things that make your life better every day, but if you really needed to cut back, you could put them on pause for a while. Things like streaming services, gym memberships, weekly date nights, saving contributions, or even recurring donations.
  • Luxuries: things like takeout or delivery meals, your daily coffee run, clothes shopping, concerts, sporting events, etc. Cutting these is often the hardest to do as they become habits, but are easy starting points if you need to cut back.

Put the essentials into your budget first, then your nice-to-haves. Add up those expenses and compare it to your monthly income to paint a clear picture of where your money goes each month, and how much money you really have left for the luxuries.

Save on fuel

A trip to the pump is rarely an exciting trip, and with gas prices constantly fluctuating, finding ways to make those trips a bit better.

One key benefit of being a CAA Member is that you can save on fuel, so while it may be tempting to drive a bit further in hopes of finding the cheapest gas station, you can get guaranteed fuel savings with a CAA membership.

Be prepared and save on roadside emergencies

Every year, winter catches us off guard - but not this year! According to CAA North and East Ontario, they rescued over 52,000 motorists between December 2020 and February 2021. Many think they don’t need roadside assistance if they have a newer model car, but like many things in life, you don’t want to need it when you don’t have it.

Fortunately, basic roadside assistance is quite affordable. It’s a tiered service, so it can fit any budget. The first tier starts at just $8.25/month, and gives you roughly 10km of free towing. If you often drive in more remote areas or regularly drive long distances, the premium plan offers over 200km of towing.

While this might seem like a luxury expense, consider that the average cost to boost a dead battery is $100-$150, a roadside flat tire swap is $100-$200, and the cost to tow 100km is $500-$600, becoming a CAA Member really is a no-brainer. And that doesn’t even consider the value of peace of mind knowing you’re covered with roadside assistance by CAA.

Save on auto insurance

If you’re one of the many Canadians who switched to working from home full time or a few days a week, there’s a good chance you’re driving less now than before the pandemic. If you’re driving less than 12,000km per year but still paying for traditional auto insurance, it’s time to look into other insurance options that suit your lifestyle.

One example is CAA’s MyPaceTM, Canada’s only auto insurance payment program specifically created for people who don’t drive often. It puts you in control of your monthly insurance costs, saving CAA MyPace policy holders up to 50% compared to traditional auto insurance.

The best part? CAA MyPace is available to all Canadian drivers, but CAA Members can save up to 20% on their CAA Auto Insurance policy.

Make the most of membership programs

While reviewing your bank account and credit card statements, take note of your membership programs and the discounts or perks they include. You now have a full list of everything you need each month - and you might discover you have easy ways to pay less for those things.

For example, CAA Rewards is a worldwide savings program that gives CAA Members access to save on fuel, shopping, entertainment, restaurants, health, and much more from over 126,000 partner locations around the world. Even when we’re facing high inflation, you should try to make time for entertainment with your family. And CAA Members can save up to 47% on regular season Ottawa Senators tickets.

Ultimately, inflation hits everybody in a number of ways, but there are several ways you can control the way it affects you. To learn more about how a CAA membership can help you save money on your daily and monthly expenses, visit caaneo.ca today to find a program or policy that’s right for you and your family’s needs.

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