The right saving strategies involve taking steps that will allow you to save the money you need to achieve your short, medium or long-term goals.
Here are some practical saving strategies to help you meet your financial needs and goals:
1. Forget traditional saving strategies or rules
Most importantly, forget the long-established rule that says you should put aside a certain percentage of your salary into your savings account.
“People’s situations and goals vary greatly, so it’s best to establish a tailor-made strategy with an advisor,” says Natalia Sandjian, Financial Planner and Senior Advisor, Investment and Financial Planning at National Bank.
It all depends on your life goals.
2. Figure out your needs and objectives
As every situation is unique, choosing a competent advisor with whom you are comfortable is essential.
“They will help you consider your needs and ask you the right questions for your situation, objectives and life goals,” explains Sandjian.
3. Cut back on unnecessary expenses
To save efficiently, you’ll benefit from analyzing your budget and making corrections if necessary.
“Calculate your income and expenses to see if there’s any room for improvement, such as giving up your daily $5 coffee,” explains Sandjian.
4. Implement systematic savings
To stay disciplined with your savings over the long term, consider systematic savings.
“In the beginning, you might feel the impact of these transfers, but you will get used to it. Eventually, you’ll forget about missing the money, and you’ll be saving without even realizing it,” continues Sandjian.
This will also allow you to accumulate an emergency fund, in other words, “a safety cushion to have in place to keep you afloat financially in case of unforeseen expenses.”
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