According toStatistics Canada, the current inflation rate is 1.9% and BMO as well as other bank analysts are predicting the nation’s inflation rate will continue to hover around the 2% target rate over the next year.
While these rates are lower than some we’ve seen in recent years, it’s certainly not negligible, especially if you’re still trying to catch up from the impact higher inflation rates had on your monthly budget — rising costs that started to climb in 2020 and continued until late 2024.
What can you do? A good strategy for fighting back is to take advantage of some simple ways to stretch your money — and make more of it.
Here are eight ideas for putting some padding in your budget, so you can show inflation who’s boss.
1. Cut the cost of your debt
High-interest debt from credit cards and personal loans can be a major drain on your bank balance, especially if you’re making only the minimum payments each month.
To slash the cost of that debt, you might shop around for a debt consolidation loan. You’ll trade in all of your current balances — on credit cards, loans, everything — for a single monthly payment at a lower interest rate.
For instance, using the online portal for Loans Canada, you can apply for a personal loan in as little as 30 seconds. Depending on how much interest you’re currently paying on your debts, consolidating them could save you thousands of dollars and help you become debt-free years sooner.
2. Hunt down your long-lost money
You do know where all your money is, right?
People move on and forget all about money in old accounts all the time. It’s so common that Americans currently have more than $40 billion in unclaimed funds waiting for them. Is any of that yours? Search MissingMoney.com, which will show if you left any money in an old checking or savings account, or if you’re entitled to unclaimed life insurance policies from relatives who have passed away. (You’ll want to be much more careful when you buy your own life insurance policy.)
You also should check with Revenue Canada to see if there are any tax refunds you’re missing. You can amend your previous tax returns for up to three years if you were eligible for a refund but neglected to claim it.
3. Use technology to save when you shop online
If you do most of your shopping online — and these days, who doesn’t? — you likely go to the same website again and again. You know the one. But Amazon doesn’t always have the best prices, and nobody has time to price-check every store.
You can let technology do that work for you. You might download a free browser extension that will automatically find you deals and coupon codes every time you shop online. You also can set price-drop alerts for your favourite products, so if they go on sale, you’ll be the first to know. Installation of the add-on takes just a moment and could save you hundreds of dollars a year.
4. Play the market with your extra cash
If you’ve never put money into the stock market, you might think owning a piece of a well-known company is out of reach. After all, stock prices have been climbing higher and higher over the last year.
But Wealthsimple Trade will let you buy fractions of shares, allowing you to ride the stock market juggernaut with just your spare change. You can buy pieces of companies like Google and Tesla for as little as $1 — and when they profit, so will you.
5. Shrink your car insurance bills
If you’ve got a car and aren’t shopping around for cheaper insurance every six months, you could easily be overpaying by hundreds of dollars a year. Comparing rates from multiple insurance companies may sound like a lot of work, but some websites do the shopping around for you. You might find a better deal in just a few minutes.
For instance, YouSet is an insurance brokerage platform that allows you to browse the best auto insurance policies across multiple insurers all in one place.
You’ll answer a few quick questions and be presented with the best quotes from numerous car insurers. That way, you can find the lowest price available on the coverage you currently have.
6. Stop paying too much for home insurance
Homeowners insurance rates have been rising for many Canadians. But if your bill seems too steep, you might be able to cut it down to size with some good old-fashioned shopping around. Thankfully, shopping around is much easier these days because of online insurance brokerages, such as YouSet. As a digital insurance firm, YouSet let’s homeowners compare insurance policies and costs from multiple providers — and this quick comparison helps you identify quick and easy ways to pay less for your home insurance coverage.
To save, go online and compare quotes using YouSet. Answer a few basic questions, and you’ll instantly see the best deals available in your area. In just a few minutes you could end up saving some serious money while keeping the same level of coverage — that’s peace of mind and savings, all in one.
7. Get paid when businesses behave badly
When companies do the wrong thing, they get taken to court — and sometimes their customers get compensated. The Consumers’ Council of Canada has a website that lists class action lawsuits. You can check to see whether you qualify to join in any of these suits, which may result in money coming to you.
Recently listed class action suits in Canada include one for owners of lawnmowers and another involving price-fixing of auto parts.
The criteria for eligibility will vary depending on the lawsuit, but in some cases you may not even need a receipt to get reimbursed.
8. Make money with your pocket change
Another way to use the stock market to help you battle rising inflation is by putting your pennies to work.
You could use a trading platform to help you grow a diversified portfolio with investments of as little as $1. Inflation may be eating away at the value of money, but your pocket change is far from worthless. If saved and invested properly, it could turn into hundreds of dollars in as little as a year.
Sources
1. Statistics Canada: Consumer Price Index Portal
2. BMO Capital Markets: 2025 Canada Economic Outlook: On the mend (Dec 3, 2024)
3. Consumers’ Council of Canada: Notice of class action lawsuits
This article [Inflation busters: 8 ways to stretch your money and fight soaring prices](https://money.ca/managing-money/budgeting/inflation-beaters-stretch-money originally appeared on Money.ca
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Related Posts
