Saving on Taxes

It's scary how much of our money disappears through the cracks. I've discovered that one of the really big cracks in my finances is that of sales tax. Here in Nova Scotia we pay 14% sales tax on most things. (Books have a lower tax rate.) That adds up to literally hundreds of dollars ever year. It surprised me when I realized just how much we pay out in taxes, between sales tax, income tax, etc.

Now, I'm not saying we should avoid paying them, because for one it's illegal and there are stiff penalties, and because the Bible tells us specifically that we ARE to pay our taxes. But I've started looking for ways to reduce the amount of money that I "nickel and dime" out of my budget. With baby #2 on the way and me looking ahead to a cut in income, it's something that is weighing more on my mind lately.

One very easy way I've found to reduce the amount of money that goes out in sales tax is to pay closer attention to what I'm buying. For example - if I buy a bag of grapes, there is no tax. If I buy them washed and stemmed, then there is tax payable on it. Ground beef has no tax, but pre-made patties do. Flour, sugar, eggs, milk, chocolate chips - no tax. Chocolate bars - tax. The tax is payable on things that have had extra processing, convenience foods, etc. So just by cutting out the extra services, and the extra junk food, from my grocery shopping, I am quickly saving $5, $10, even $20 and I haven't really *done* anything. It might mean a little more work when I get home, but it might also mean I have a little extra left over to buy something special. :-)