Regardless of the state of the economy, paying yourself is one of the most important step in budgeting. Here are some tips to help you grow your savings:

Set up an emergency savings account.
Having money set aside for emergencies will prevent you from dipping into your retirement or having to cash in RRSP’s. General rule of thumb is to set aside three months of living expenses but I prefer six months especially in challenging economy.

Save money for long-term goals.
Having a goal will make saving easier. If a portion of your retirement contribution is matched by your employer you would be passing up free money if you don’t take advantage of it. A little bit off every pay cheque will add up to big dividend in the long run.

Automatic savings.
You can set up your online banking account to automatically transfer a small portion of your pay cheque from your chequing account to your saving account.

Don’t break the bank.
Even if you can’t afford to put a lot of money towards your savings right away, starting small will establish some routine, even if it’s only $25 a month at first.

Shop for best rates.
Comparison shop for the best savings rates available. A high yield account can double your interest. 

Flip a payment into savings.
Once you’ve paid off a loan or credit card, add that payment amount or 50% of it to  your monthly savings amount.  

Save your windfall.
Because you get a bonus, an inheritance, a tax refund doesn’t mean that you have to spend it. Money set aside now will reward you later-and with interest.

 

Save money on your mortgage. We deal with over 40 lenders. www.BestMortgagesOnline.com

 

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Comments
  1. You make some excellent points in this post many of which I have talked about in my blog. I agree with you about the 6 month emergency savings plan rather than 3 however something is better than nothing. It’s apparent that most people give up on finances as the economy is being so nice these days. We have to fight back, stand strong and continue to worry about our future. It’s worth it to save $5.00 than to save nothing at all.