Boost Your Saving Smarts
When it comes to investing and wealth management, everyone can always benefit from reviewing some cornerstone financial strategies. No matter what you’re trying to accomplish with your saving and investing, these four money tips will help ensure that you’re on the right track.
1. Money Matters
First things first: It’s hard to start saving if you don’t actually know how much money you have or how much you’re earning. If it’s been awhile since you’ve looked at how your income stacks up against your monthly bills, take some time to review. (And try not to forget about extra subscription services like Netflix or Spotify.)
Once you’ve dialed into how much of your income is left over, it opens the door to all kinds of investment potential via stocks, funds, and/or contributions to a TFSA, RRSP, or other account. Once you know how much money you can afford to save, you can invest it however you like.
Whether you’re comfortable investing five, 20, or 30 percent of your annual income, it’s impossible to find the right wealth management strategy for your needs if you don’t have an accurate, up-to-date knowledge of your personal finances and net income.
2. Know Your Savings Goal
No matter what age you are, or how much you’re looking to save, the same principle holds true: It’s a lot easier to find the motivation to put money into investment accounts if there’s a clear purpose.
If you’ve been investing for a while, it’s worth it to remind yourself that the accounts you’ve been watching go up and down (hopefully up!) have a real, tangible purpose. Maybe it’s a house, or a new car, or retirement. Whatever the goal, hold it in your mind’s eye, build a savings plan, and don’t forget it.
3. Build a Budget!
It’s boring, and you’ve heard it a thousand times – but budgeting works. Giving yourself a set amount to spend on certain things like going to the movies, or fancy dinners, or single origin coffee (apologies, our Vancouver is showing) helps you stick to a financial plan like nothing else. Set some limits for your disposable income, stay within them, and be proud as you watch your investable money grow!
4. Invest Early, Invest Often
“Early” doesn’t have to mean getting into investing before you’re 13. If the best time to start was yesterday, the second best time is today.
This applies to all kinds of savings and investing, whether it’s building the specific portfolio you’ve been planning for a year, or a few ETF purchases you’ve been meaning to make for a couple months. We’re not saying to rush in blindly without doing any research, but if you’ve been putting off your saving and investing plan, don’t beat yourself up about not starting earlier – just start.
No matter how old you are, or how much money you have, we hope that reviewing these foundational money tips have helped. If you’re ready to take charge of your investing and saving, Credential Direct is here to help. Open an account today!
The information contained in this post was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete. This post is provided as a general source of information and should not be considered personal investment advice or solicitation to buy or sell any mutual funds and other securities. On-line brokerage is offered through Credential Direct, a division of Credential Qtrade Securities Inc., operating as a separate business unit. Unless otherwise stated, mutual funds and other securities are not insured nor guaranteed, their values change frequently, and past performance may not be repeated. Credential Qtrade Securities Inc. is a Member of the Canadian Investor Protection Fund.