#1 - Set a Goal
Keep yourself motivated by setting a realistic goal for your savings. Figure out how much you’ll need, either on your own or with help from one of our trusted advisors, then divide that amount by the desired time you’ve set to reach your goal.
For example, if you want to save $20,000 in five years, your monthly saving goal would be $333 a month. For $30,000, aim for $500 a month.
KSCU Tip – if you want to buy a house or go back to school, you could grow these savings faster in an RRSP and borrow from them when the time is right. Chat with an advisor to learn more.
Does saving for a specific goal seem out of reach? If money is tight, set up a savings account and have a modest, pre-determined amount transferred each payday. Every little bit counts and it’s okay to start off small!
#2 - Review Your Spending & Create A Budget
One great way to save money is to review what you’re already spending. Look at all your statements to see where the money is going, then dig deeper to see if you’re getting the full value of what you’re buying. Little things can make a big difference, like paying for features on your cell phone that you can live without. Visual voicemail is nice, but if all you get are texts, do you really need to pay $10 a month for visual voicemail?
Subscription services are great, but be sure to check your credit card statements to see if you’re using everything you’re being charged for. It’s easy to overlook a $20 monthly fee, but over the course of a year, that’s another $240 that could be in your savings account.
Sometimes, people think they have their spending under control, but at the end of the month they can’t figure out where all the money went. To avoid this, we recommend you sit down and create a budget that lists everything you buy.
KSCU Tip – keep your receipts every day and compare them to the monthly statements from your financial institution and credit cards to see exactly where your hard-earned money is going.
#3 - Leverage Your Benefits
If your employer offers a matching program for RRSP contributions, you can grow your savings faster and without paying for it all by yourself. Run the numbers – a 5% match for your salary of $50,000 would give you an extra $2,500. When combined with your $2,500 contribution, that’s $5,000 a year in your RRSP!
#4 - Give Your Savings Time to Grow
Time is the biggest advantage you can give your money, so don’t be tempted to dip into your savings before you reach your goal. Give them time to grow with interest, and your holiday fund, emergency fund or retirement savings will surprise you.
Talk to a KSCU advisor today so you can start saving for the future!