How to Find Room to Save in 2026, Even on Tight Budgets – MoneySense

Kelly Ho, a certified financial planner at DLD Financial Group, says you should start by identifying your fixed costs, such as rent, mortgage, utilities or car payments, and then figure out how much you make. “When I sometimes ask clients: ‘What is your income?’ Not everyone can give me a clear answer,” she says.

From there, she says, take a look at the rest of your expenses and see how they compare to your budget to see where the differences are. If you pay with a credit or debit card, you can see where the money is going on your monthly statement. “It’s just a matter of really understanding how much money is coming in and how much is going out,” Ho says.

Subscription Expenses: Easy to start, easy to overlook

Subscriptions can be a sneaky way to lose track of costs. The cost of subscriptions for not only shows and music, but other services as well, can add up over time. With apps offering easy sign-ups and free trials, it can add up before you know it unless you carefully monitor your spending.

“Everything costs money and sometimes we subscribe on a whim with the intention of unsubscribing at some point. But then again, life gets busy so that’s why we leave it on and wonder why our credit card bill is so high every month,” says Ho.

Ho says finding $10 a month in savings here and there can quickly add up if you cancel more than one subscription or service you don’t need or use. “You multiply that by 12 months, multiply that over several years, plus, you know, the potential investment growth. That’s a lot of money on the table,” she said.

When actual expenses do not match the budget

Ho says travel is another area where your budget may not match reality.

“Everyone I’ve talked to has underestimated the cost of travel,” she says. “I don’t know if many people actually keep track of what they spend when they get to their destination.” An extra round of drinks, an expensive souvenir or an extra excursion during the holiday can lead to the planned budget being exceeded. “I encourage people to save more consciously for travel, rather than simply lumping travel in with everyday expenses,” says Ho.

Becky Western-Macfadyen, financial coaching manager at the non-profit credit counseling agency Credit Canada, says it’s important to understand what you need when looking at expenses for things like wireless plans, which can come with all kinds of bells and whistles. “You want to make sure you’re paying for what you’re actually going to use in your subscription,” she said.

Western-Macfadyen also says that removing apps like food delivery services from your phone may make it less convenient, but stopping regular spending on takeaway food or at least making it a little more difficult will add up.

She said the reward of setting aside a little savings for an emergency can even help you save in the future by preventing you from taking on debt. But she acknowledged that changing spending habits can be difficult and that sometimes the reality is you can’t find areas to cut back.

“If someone looks at their budget and thinks they can’t cut anything, that doesn’t mean they’ve failed,” she said. “It means the budget is just telling you the truth. It’s information. And savings come from understanding your cash flow and sustainable change. So you just want to tell yourself the truth so you can make decisions based on that.”

Read more about saving: