Q. How can I save money?
A. This is a ‘frequently asked question’, and is definitely worth repeating.
Saving regularly is the foundation of any personal financial plan. In fact, when you demonstrate good financial savings habits, if at some point you are looking to borrow money, this is something lenders look at. Good money management skills show you are responsible and could be a good credit risk.
The easiest way to save is to ‘pay yourself first’. As soon as you get your paycheque, dedicate 10% of your take home pay to your savings plan. If you ‘pay yourself first’, you won’t be tempted to spend it.
A great way to start is with a Synergy Wealth Accumulator. For as little as $25 per month, and more if this fits your goals and objectives, set up to automatically come out of your payroll account, this product helps you manage your savings plan in a systematic way. Your savings will earn a competitive rate of interest similar to term deposit rates.
Another question you might ask yourself is, ‘Could cutting back on my expenses help me find more dollars to amp up my savings plan?’ Try our budget analysis calculator. It’s amazing how much some of the ‘little pleasures in life’ add up to.
Once your saving plan starts to grow, so too do your investment options. You can grow your money, for example, with GICs, mutual funds*, stocks* and bonds*, which may be held in non-registered plans or RRSPs, TFSAs, etc. Depending on your savings objectives, timeline, and risk tolerance you may choose one or a combination of investment options to achieve your goals.
To make sure you get started on the right track, a visit to a financial planner would be beneficial. Synergy Credit Union offers free, no obligation financial planning services to its members. Give Synergy a call, we’d be pleased to help you determine how much you could be putting away each month to help you achieve your goals and objectives.
*Mutual funds are offered through Credential Asset Management Inc. and mutual funds and other securities are offered through Credential Securities Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, cash balances, mutual funds and other securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions. Mutual funds and other securities are not guaranteed, their values change frequently, and past performance may not be repeated. Credential Securities Inc. is a Member-CIPF.
