Simple money-boosting tips
By Diana Cawfield • Bankrate.com

Chances are likely that you, a friend, or a family member, are struggling with finances during these challenging times. The cost of basic necessities such as groceries, heat and electricity are on the rise and many people are becoming more frugal, whether by choice or necessity.

If you're looking for expert advice on practical, painless ways to boost your cash flow and save at the same time, read on. The good news is finding extra money every month is not as difficult as you might expect.

Tip No. 1: Use the power of a PAC
"I believe the pre-authorized contribution plan is one of the best ways of saving or investing for most people," says Murray Pituley, director, tax and estate planning, Investors Group.

A pre-authorized contribution plan, or PAC, which is easily set up by a financial institution, automatically transfers money out of a chequing account into a savings or investment account every month. You don't miss --- or spend -- what you don't see.

"I believe that we can budget around what we have in our bank account," says Pituley. "When we pay ourselves first, we adjust our lifestyle spending to accommodate that. If it's just sitting in your chequing account, it's too easy to spend; whereas if it's put aside in a separate account, people tend to leave it alone."

PACs can be used as a savings vehicle for:

• Tax-free savings accounts (TFSAs)
• Registered retirement savings plans (RRSPs)
• A travel fund or other personal goals
• An emergency fund

Tip No. 2: Track expenses
Tracking your spending for a month (or three) can create cash-boosting opportunities. Simply record what you spend on meals out, gifts, groceries, clothes and vacations, for example. I started a spending journal and was astounded by how much I frittered away on items such as coffee, lunches, treats and magazines that added up to more than $300 a month -- that's $3,600 a year!

"I believe it's an essential first step that can have very essential long-term effects," says Pituley. "Even investing small amounts every week or every month can have very powerful benefits over the long term."