Get control of your spending today!

3. Large purchases, big deals
Splurging once a month can add up as fast as that morning latte. Before you make a major purchase, ask yourself Katz's three questions: "Can I afford this? Can I put this off? And why am I buying this?" Let your money reflect your priorities. "If you're going to buy a big item, can you match that with an investment for your future?" asks Katz. If you can match it with a contribution to your RRSP, you're in good shape. For necessities, pay attention to sales when you can get deep discounts (for example, buying furniture in January).

Try it this week: Make it your mission to bargain-shop gas prices. Katz suggests filling up Sunday or Monday, the cheapest time for gas (the most expensive time is Friday mornings). Check out www.gastips.com for local information.

4. Dare to dream
"The biggest mistake people make is to not save at all," says Katz. Decide to "pay yourself first" by investing part of your paycheque -- Katz suggests 10 per cent. The investment money can come from your incidental purchases. Try the cash flow savings calculator at burnrate.ca to see how much your daily savings add up to.

Try it this week: Take the time to daydream about being financially healthy. Does that mean you have a robust RRSP or are completely out of debt? Write down your goal and commit to finding a way to make it happen.

Bonus: Pay it forward
Teach your children good financial habits. Give your children an allowance -- Katz suggests $1 for each year of their age. The catch? Encourage them to save 10 per cent, so they can see compound interest at work. If you have teenagers, talk to them about a clothing budget, and encourage grandparents to contribute to an RESP rather than buying presents. Of course, you can now lead by example, too.

How do you control your spending? Discuss with other readers in our forums!

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