All Savings in Segregated Fund Investments
Need to Start with a Strategy
Start by Setting your Financial Goals
When setting your financial goals, you want to be realistic and specific and also take into consideration the timeline in which you hope to achieve each goal.
Four examples of specific goals:
- Save $1500 for a vacation
- Pay off credit card debt within the next 18 months.
- Save $25,000 for a down payment on a house over the next 4 years.
- $150,000 RRSP saving in 25 years.
When moving to the next step you want to think about how much you can afford to save toward your goals in a specific period. Based on how much you can afford, you may have to decide which goals are most important to you.
- What are your top financial goals?
- What is your timeline?
- How much money will take to reach your goal?
- How much can you afford and how often?
Everyone’s financial goals are different, so only you know what you are saving for and how long you want to take to achieve it.
|What are your financial goals? Be specific.
||When do you want to reach your goal?
|How important is this goal to you? You may need to choose some goals over others.
||What will it cost to meet your goal?
||How much have you already saved toward this goal?
||How will you meet your goal?
||How will you carry out your plan?
|Pay off my credit card debt
||Put an extra $100 a month toward debt repayment
||Pack 4 lunches a week instead of eating out
|Save for Retirement
||Contribute $400 monthly
||Increase my employee contribution to $200 and employee match will increased to $200
|Save for a Vacation
||$75 on automatic withdrawal bi-weekly from pay
||Pick up extra hours where possible – limit dinner out with friends to once per month
|Save a down payment for a house
||Save $7,000 – then use the Home Buyers’ Plan; Withdraw $10,000 from RRSP
||Continue RRSP contributions; save tax refund for down payment; get a roommate to save on rent; scale back spending on clothing and gifts
Plan for Emergencies
Once you’ve defined your financial goals, you may find that you have many things to save for. When you first start saving, choose your top 3 financial goals. Knowing what’s most important to you will help yu build the kind of life you want.
Life happens, so plan for the unexpected – this is one of the biggest benefits of saving. First rule of thumb when it comes to emergency savings is to have enough savings to pay today’s bills plus the cost of living for 3 to 6 months. The right amount will depend heavily on whether you are single or raising a family, how much you earn and what resources you can tap into if you need money fast.
Are you ready and prepared to save?