Personal
Home Bank accounts
Credit cards
Borrowing
Mortgages
Savings and investments
Insurance
Advice
Business
Home Banking Solutions
International
Financing
Investing
Going Further
Tips and Tools
Wealth Management
Home
CLOSE

Saving: How to Take Action Now

26 April 2019 by National Bank
Saving

You know you need to save, but not sure where to start? Here are some tips, advice, favourable statistics and an Einstein quote (seriously!) to help you take action and start saving now!


Get moving
 

The media frequently reports that Canadians don’t save enough. It’s a harsh reality that, instead of motivating you to save, probably has the opposite effect. Overcome that feeling and get rid of the nagging inner voice asking “Why should I bother saving if it’s never enough?” Instead, try adopting this new mantra: “Saving a little is still better than saving nothing.” Get motivated and don’t give up!

Set goals… and find a photo

Putting money aside without a specific goal in mind isn’t very motivating. Saving for something concrete is! Whether it’s travel, buying your first home or retirement, it helps to have a goal.

According to Betterment, savers who set concrete goals on online investment platforms save an average of 64% more money than those who don’t. The same study revealed that uploading a photo of your goal will help you save 32% more on average.

Set up automatic transfers

Setting up automatic monthly transfers to your savings account will help you save almost effortlessly. You may feel the impact of the transfers at first, but with time, you’ll get used to it.

Read Einstein’s quote about compound interest

No matter the amount, never underestimate the power of compound interest. As Albert Einstein said, “Compound interest is the eighth wonder of the world. He who understands it, earns it… He who doesn’t, pays it.”

Saving an amount equal to your age every month from the age of 20 could amount to $92,410 by age 65. Saving twice your age could total $185,850 by age 65.

Work with an advisor

Getting an advisor to help you plan could significantly impact your savings. According to a study by the Cirano research centre, investors who work with advisors accumulate 3.9 times more assets after 15 years than those who don’t. The same study reported that the positive effects of working with an advisor can be noticed as early as the fourth year.

According to a report from the Investment Funds Institute of Canada (IFIC), investors who work with advisors are also twice as likely to regularly save for retirement, no matter their age, compared to those who don’t.

Diversify your investments and products

In addition to guiding you along the right path, an advisor will steer you towards the best strategy to adopt.

According to this study from the Investment Funds Institute of Canada, investors who are not advised tend to have 1.9 times more liquidity in their assets than investors who work with an advisor. Having too much liquidity in your portfolio can considerably reduce your wealth over time, as well as your chances of achieving your life goals.

So, are you ready to take action and achieve your goals? Saving is easier than you think. All you need is motivation… and proper guidance! 

Legal disclaimer

Any reproduction, in whole or in part, is strictly prohibited without the prior written consent of National Bank of Canada.

The articles and information on this website are protected by the copyright laws in effect in Canada or other countries, as applicable. The copyrights on the articles and information belong to the National Bank of Canada or other persons. Any reproduction, redistribution, electronic communication, including indirectly via a hyperlink, in whole or in part, of these articles and information and any other use thereof that is not explicitly authorized is prohibited without the prior written consent of the copyright owner.

The contents of this website must not be interpreted, considered or used as if it were financial, legal, fiscal, or other advice. National Bank and its partners in contents will not be liable for any damages that you may incur from such use.

This article is provided by National Bank, its subsidiaries and group entities for information purposes only, and creates no legal or contractual obligation for National Bank, its subsidiaries and group entities. The details of this service offering and the conditions herein are subject to change.

The hyperlinks in this article may redirect to external websites not administered by National Bank. The Bank cannot be held liable for the content of external websites or any damages caused by their use.

Views expressed in this article are those of the person being interviewed. They do not necessarily reflect the opinions of National Bank or its subsidiaries. For financial or business advice, please consult your National Bank advisor, financial planner or an industry professional (e.g., accountant, tax specialist or lawyer).

Categories

Categories