Halifax Homeowners - Reaching Your Savings Goals

How can I reach my savings goals?

Sometimes the hardest thing about saving is getting started. How do you find that bit of extra money each month to put aside for a special purchase, or a vacation? There are some simple steps you can follow to get you on track for successful saving.

1. Get your goals straight

   It's a good idea to have a savings plan, and choose the goals that are most important to you. For example, you may want that new surround sound system, but also need an emergency fund so you're prepared for the unexpected. Figure out what your goals are, and the timing for reaching them. Then develop your savings plan accordingly.
   It helps to set a timeline for yourself to give you additional motivation to meet your savings goals. Some timelines are simple; for example, you may want to go on vacation six months from now, or you may be planning to have the down payment for a house ready in two years.

2. Do a budget

   Creating a budget gives you a clear picture of your finances, which will help you track your spending, and allows you to figure out how much money you have left over after paying your bills, saving for long term goals such as saving for retirement and buying your essentials each month. A budget will give you the ability to prioritize your expenses, so you can easily determine what is unnecessary spending and cut back where you can. Remember, unlike your mortgage or rent, you have control over your variable expenses - such as coffee, clothing, entertainment. This is the first place to look when you want to save money.

3. Stay committed

   Do you have a weakness for impulse shopping? It's important to stay focused on your goal, and ignore the urge to buy things that aren't included in your budget. Put your savings goals in writing, stay on track and try to ignore the impulse.

4. Set up the right accounts for your goal

   It's important to have the right bank accounts in place as you start saving. It's a good idea to have an everyday banking account for your day-to-day transactions (such as cash withdrawals, bill payments, paycheque deposits), as well as a dedicated savings account so you can keep track of the money you're setting aside.
   Look for a savings account that pays high interest. Consider, for example, the RBC High Interest eSavings® account which offers interest on every dollar, and free online transfers between RBC® accounts. This makes it easy to transfer money into your account, as well as to transfer your money out when you're ready to use it.

5. Pay Yourself First

   Once your savings account is set up, get in the habit of paying yourself first and setting aside some money from each paycheque to achieve your savings goals. It's easier if you think of it as something you have to do, like setting aside money for your mortgage or rent. A simple way to pay yourself first is to start automatic online transfers between your everyday banking and savings account. You can set up your transfers with the RBC Save-Matic™ program; simply choose the amount you want to save, and how often you want to transfer.

Once you make saving a habit, you'll find it easy to set money aside for the future- whether it's for a purchase in the short-term, or a long-term goal.

For more information, visit the RBC Advice Centre.

~Susan