(NC) If the new year rings in and all you can hear is last year's failed promise to save more money, it's time to try something new.
“We've had a long period of high spending fueled by record low interest rates and it's clear that Canadians are getting a little rusty at saving,” says David Nicholson, vice president at CIBC.
A CIBC poll recently found that while the vast majority of Canadians say they need to save more, nearly two-thirds admit they don't have a detailed or regular savings plan, including 26 per cent who don't save at all.
Yet, with inflation outpacing earnings and most of us expecting to live longer than our parents, the majority worry we aren't saving enough to reach our goals and retire when we want to. So, why is it so hard to save?
Experts agree that one of the best tips to grow your savings is to pay yourself first. By treating savings like a bill to be paid, you're removing the temptation to spend instead of learning to overcome it.
“It's about changing our mindset and getting into a habit of saving. Most people find it easier to automatically transfer a set amount to a dedicated high-interest savings account as soon as their paycheque is deposited, then simply make do by only spending what's left over.”
For an added boost, Nicholson suggests directing those funds into a Tax-Free Savings
Account where the interest or investment income that's earned can grow tax-free.
“Once you've got good savings habits in place, speak to a financial expert to create an investment plan that's right for you and can help make the most of your growing wealth.”