Why Save - and How You Can Save
Saving money: it all adds up
When you save money, you can do things that matter to you. Often people save money to:
- Pay for expensive things - like a big TV, a new car, or a vacation
- Handle surprises - for instance, to pay the bills if the car breaks down or you lose your job
- Buy a home - likely the largest purchase you will ever make
- Retire - in case you don't have enough income from a pension at work or Canada Pension
- Pay for education - your own, or education for your spouse or a child.
What you save for depends on what matters most to you.
Five steps to saving money
Not sure how to start saving? Follow these five steps:
- Set a savings goal. Ask yourself: How much money will I need? How soon? Be realistic.
- Decide how much you will save from your pay. Put aside money to save first, then spend what's left.
- Track where you spend your money. This will help you find ways to cut your spending if you need to.
- Build a budget and stick to it. If you spend too much one month, try to spend less the next month.
- Reward yourself when you reach your goal.
Remember: when you save, you will have more choices. And you will likely have fewer money worries. That can be the best reason of all to get into the saving habit.