If you are lucky enough to get maternity leave pay, you might be ok with the amount you receive, depending on your spending habits. In Canada, most women get 55% of their weekly earnings up to a maximum amount. This isn’t much if you live paycheck to paycheck. So how do you save up for maternity leave?
The best advice I got was to calculate how much I would receive on mat leave, and live off of that while still working. This will give you a good idea on how it will be when baby arrives and it will force you to save up the leftover money (in Canada, that could be about 45% of your pay). Now I know this might not be possible for some families, but if you are able to do it, you should give it a try.
My other tips include:
1. Don’t make unnecessary purchases
Do you really need that $100 purse, or $50 dress? If you are on a budget, save by not buying unnecessary items. Every dollar counts.
2. Make a budget
Open up an Excel document and write out your monthly expenses. Be honest with yourself what your spending habits are, and see how much wiggle room you have.
3. Open up a savings account
Find a savings account that doesn’t charge you any monthly fees and set a percentage of your pay there. You will still have that money, but it won’t be in your chequing account leaving you tempted to spend.
Do you have any tips you would like to share? Add them in the comments below!