There’s no shortcut to financial freedom. Saving can be a challenge for anyone, no matter how much money you make. If you’re looking to improve your financial situation and get saving, here are simple steps to get you started.
- Learn: There are hundreds of personal finance books out there, and even more websites. Do your research. Once you have a better idea of your financial needs and goals, you can sit down with one of our financial advisors, who can provide advice tailored to your specific situation.
- Set a goal: Whether it’s paying off your student loan, buying a home, or saving $5,000, the goal itself isn’t as important as having a destination. A clear goal will help motivate you. It brings purpose to your saving and gives you a milestone to eventually celebrate.
- Get started early: Investing small amounts of money over a long period of time is often better than investing a lot of money for a short time. That’s the power of compound interest.
- Control your debt: If you owe money, make sure it's not on your credit card. Interest rates will be roughly twice as high as on a line of credit. Ideally, you should pay your entire credit card balance off every month. If you can’t do that, pay off as much as you can – never just pay the minimum monthly balance. Compound interest is your worst enemy when it comes to debt.
- Insurance: Protect yourself and your belongings with appropriate insurance coverage. Life sometimes throws curveballs and a good insurance policy will help make sure those curveballs don’t wipe out your savings.
- Make a budget: It’s a great tool to control your spending. A budget lays out your expenses in black and white, identifying places you might be able to save and highlighting upcoming expenses.
We’re here to help you on your way to financial freedom. If you have any questions, call our Contact Centre at 1.866.863.6237.