Although I have been setting money aside in small increments since I began my first job (thanks to the advice of my mom and financial advisor), I didn’t become a super saver until I moved out on my own, several years later. I became an even bigger super saver when we decided to start looking for a house two years ago.
Saving for retirement should be on everyone’s list in terms of big-ticket items. Many people my age think it’s too far away or they can survive on their pension alone. I don’t believe in either. People who are already retired or close to retiring have told me it comes a lot sooner than you think. How can we be so sure that our pension alone will support us? It all depends on retirement goals and lifestyle. I love traveling and most likely will still want to travel in my early retirement. I’d rather try to save much as I can while I’m still relatively young and time is on my side.
The bottom line is: I save because I want to be comfortable in my retirement and not have to work during my golden years.
While for most of us retirement is more of a long-term savings goal, it also helps to have short-term savings goals. It gives you good practice if you are just starting to save and helps you to develop good savings habits. Like exercising regularly, consistent saving takes discipline and is part of a healthy lifestyle. It doesn’t come naturally to everyone and sometimes it may take a bit of time, but you’ll be in better financial health once it becomes a habit.
There are many tools to help promote saving and keep track of your progress. I’m old school and mainly use an excel spreadsheet for my monthly budget. This is where I enter in my monthly net income, fixed expenses, and variable expenses. I do it on a monthly basis and calculate the values in numbers and percentages. I’m a visual person in the sense that I enjoy seeing data displayed. I also enjoy seeing that line representing my net worth go up every month, is proof that I’m doing a decent job in saving.
Visual progress is motivating! At least for me, it is. 🙂
Automatic monthly withdrawals are a great way to save money on a regular basis. Just like George Foreman says, “You just set it, and then forget it.” Well, not completely. It’s just that you don’t have to worry about transferring money every month into your savings account. I find that keeping a separate account for rainy day savings helps in making those savings a priority. When it’s all lumped together, it’s harder to distinguish what specific amount is set aside for everyday purchases and what is an emergency.
If you’re stashing your cash in a basic savings account, think again. The interest rates tend to be quite low. With a high-interest savings account, such as the Meridian Good to Grow High-Interest Savings Account (with an interest rate of 1.75%), you can achieve your savings goals much quicker than with a basic savings account.
Who wouldn’t want to earn a lot of interest on every dollar they save?!?!
Do you have a high-interest savings account? What do you use it for? What are you currently saving for?
*Disclosure: This post has been sponsored by Meridian. The opinions on this blog are my own.*
“Meridian is Ontario’s largest credit union. It offers a wide range of banking products for personal and small business banking needs. Meridian’s new Good to Grow High-Interest Savings Account is backed up with a high-interest savings rate of 1.75%, no minimums and no fees to access your money. This account is one way you can reach your savings goals. To learn more about Meridian and how you can become a Member, visit www.meridiancu.ca.”