You have a budget and you stick to it, which allows you to put some money into a savings account. You’ve had a long week at work, so you go for lunch with friends and then decide to go browse some stores. While you’re there you see a new pair of boots that you NEED to have. You check your account balance on your app, and see that you don’t have enough money in your chequing account to purchase them, but it’s okay, you will just transfer some money over from your savings account to cover the cost.
Wait a minute!
It’s a “savings” account… not a “back up sum of cash for unnecessary shopping” account! This situation is all too familiar for our members. We’re not saying that you can never treat yourself here and there, but you’ll never reach your long-term savings goals if you don’t actually save your savings.
Besides having to exercise extreme self control, how can you do this?
Make it untouchable.
By placing your savings into a TFSA or RRSP, you’ll not only get a greater return on your investment than your standard savings account, but it will also prevent you from being able to transfer the funds into your chequing account yourself. A lot of the time, just by not having immediate access to your money, it will cause you to really think about how much you want something and stop unnecessary impulse purchases. It’s important to note that you still can access your money, but you’ll need your Account Manager to do so. In addition, you will be taxed if you pull money out of an RRSP, which may further dissuade you from using your savings for some purchases. Don’t worry, your Account Manager will work with you to decide the best vessel to put your savings in so that it works the best for your situation.
Just as the saying goes, your money will be out of (immediate) sight and therefore out of mind… but in the best way! You’ll be quite surprised how quickly your savings will add up when you’re automatically contributing to it every month and not dipping into them weekly or monthly.
Ready to get started? Great! First off, let’s ensure you have a budget in place. You can learn more about getting started here. If your budget is all set, let’s move those savings over and make them untouchable!
To speak to an Interior Savings advisor in your region, you can click the link below to send an email to our Investment Solution Centre team, you can call them at 1-855-788-8999, or you can book an appointment at the branch nearest you. We look forward to learning about your investment goals and discussing your financial future.