Imagine opening your bank app six months from now. Instead of a zero balance, there are many zeroes, with a one in front. You’ve got $1000, the equivalent of 10, $100-bills. And it’s all yours! It’s a goal entirely within your reach. Here are five ways to get started.
1. Commit to a deadline
Write it down. “In six months, I will have $1000 in my savings.” Stick it on your fridge or in a central place where you can see it, keep a note in your pocket, tell your close friends. The first step to achieving any goal, including a financial one, is 100% commitment.
2. Open a savings account
Have an account that’s separate from your everyday chequing and not connected to your debit card. You’re less likely to dip into your savings if the money isn’t easily accessible.
3. Automate your savings
If you get paid twice per month, automatically transfer $84 per paycheque to your savings. That’s all it takes to have $1,000 in half a year! Far less than your car payment. Find out how you can set up a payroll deduction or an automatic electronic funds transfer. After a few weeks, you won’t even notice the money missing. After all, you can’t spend what you never had in your hot, little hands.
4. Reduce spending
Track your spending to see where you’re spending frivolously. Do you really need to hit the drive-thru three times per day or eat out eight days pera week? Maybe you can renegotiate your telecom bill or find ways to trim the fat from your food budget. Every dollar you don’t spend can be allocated to your savings. You don’t have to give up all the things. Small changes to your budget really add up.
5. Boost your income
As you work toward your $1000 target, you may consider taking a part-time job, selling big ticket items you don’t need or starting a business. Get creative about how you can get more money coming in each month allocate to your savings.
Once you’ve hit your target, set your next-level savings goal. Saving becomes habitual over time, puts you in good financial health and ensures you have money when you need it.
Contact your SISIP advisor today to review your financial plan and set you on the path to financial health.
The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances. This article was written, designed and produced by SISIP Financial, for the benefit of SISIP Financial a registered trade name with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc. The information contained in this article comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any securities. Mutual Funds are offered through Investia Financial Services Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.
