If you are only planning to put money aside once you are debt-free, you may miss the boat!
The best way to save is to do so in an ongoing manner, by coming up with a Periodic Savings and Investment Plan to which you can contribute every week, two weeks or month, as though it were one of your usual expenses.
Sure, it'll take a little time to get used to at first, but before long, you won't even think about it. Soon you’ll have a tidy little sum for your projects and to ensure your well-being and that of your loved ones.
Set Savings Objectives
If you want to save, you have to be disciplined, i.e., make contributions on a regular basis. To do so, you have to set your sights on a goal. Otherwise, it’s easy to neglect, forget and move on…
Of course, there’s no shortage of reasons to save money. The idea is to figure out which ones are the most relevant to your situation and which ones are really worth it to you. Most savings goals fall into one of the four categories below:
We recommend building a cushion equal to at least three times your fixed monthly expenses (rent or mortgage, groceries, telephone, electricity, car loan, etc.) to give you time to sort things out if you encounter a rough patch.
To do so, there’s nothing easier than contributing to an investment or a savings account.
It could be the down payment on a house, a family vacation overseas, major home renovations, etc. With a solid action plan, you will be ready to set money aside at regular intervals and reach your goal one step at a time.
No point telling you that it's a lot easier on the budget to set aside a little every month than to pay the whole bill in one shot, especially since post-secondary studies are going to cost a lot more in the future.
You can start contributing to an RESP (Registered Education Savings Plan) right away1. The federal government will show its support with a special grant of up to $7,200. Sounds good, doesn’t it?
The higher your salary, the less you will be able to count on the government to maintain your standard of living after you retire. Our advice? An RRSP or TFSA, of course! Each has its advantages according to your needs.
The earlier you get started, the easier it will be to hatch a nice little nest egg. But, if you are older, it may be worth sitting down with an advisor to see if your retirement projections are feasible.
Determine How Much to Save
To help you determine how much money to save, use our
How Much to Save to Reach a Savings Goal calculator.
Determine Your Risk Tolerance
Everyone who invests expects a return. Those who want high returns better have a low fear of risk! Here is a way to determine your risk tolerance:
- meet with one of our advisors.
Once you know your profile, you can invest accordingly. If you aren't sure what to invest in, your advisor can help—especially if you want to invest in the stock market.
Choose the Best Investment for You
You have determined what you are saving for, how much you need to save and your risk tolerance. Now you're ready to start choosing your investments. As you'll see, there is no shortage of variety!
But don't choose blindly. Let your advisor help! Our advisors know investments inside and out, making them expert guides whether you are a cautious or bold investor.
1. Annual management fees of $15 for a portfolio under $10,000. No fee for portfolios exceeding $10,000.