If you were to rate your money savings abilities on a scale of one to 10, where would you be? Would you be average with a score of seven? Or, are you above-average because you have a huge nest egg and very little debt? Or would you be low on the scale because as with most Canadians you’re carrying a lot of debt and have a little savings? If you fall into this last category, here are some tips on how your can become a Super Saver.
Identify your goals
Where will you be financially in five, 10, 20 years: eating pâté or cat food? Seriously consider what you want and start putting your financial house in order.
Set up your savings plan:
You may think you have very little extra money at the end of the month, but you may be surprised. Revisit your spending habits and cut back on those incidental and impulse buys. You may find that there is enough to put away for a rainy day and retirement, even if it’s just $5 a month. Next, create a pre-authorised savings program to automatically deposit the money into a TFSA and/or RRSP account. Remember the power of compounding interest and you’ll quickly feel empowered. Also, find out if your company offers a group RRSP. This is a great way to become a Super Saver since your company will take your contribution at each pay before taxes. You end up paying less tax at source, which also reduces the sting at tax time.
Protect your investment
Would you be able to support your family and meet your financial responsibilities if you were in an accident or fell ill? A term insurance policy is an ideal solution because it’s inexpensive and it will meet your short-term needs.
For more information on these and other financial tips talk to your Financial Advisor or give me a call.
Bill Clunas is a Certified Financial Planner with Desjardins Financial Security Independent Network and Branch Manager-Mutual Funds with Desjardins Financial Security Investments Inc. located at 114-700 Richmond Street, London, Ontario. Phone: 519-438-1730 Fax: 519-438-6518.