We all know that having savings is very important. However, there are still many Canadians who feel like they aren't saving enough money. If you've made the decision to take charge of your financial future, here are some things that you can do to maximize the amount of money that you save each month:
- Open a separate savings account
Unlike some investment products like money market funds, the majority of savings accounts can be opened with as little as $1 and there are no fees to get started. Opening up a separate savings account will help you by keeping your funds separate from your main checking account. You can compare different savings account offered by Canada's financial institutions as well. Be sure to pay attention to the interest rates they pay as well as any fees that are charged for transactions. Since there is now a lot of competition among financial institutions that offer savings products, you will have no trouble finding an account that is right for you.
- Make a budget
Make a budget calculating your monthly income and expenses. This will help you see how much money you have left over that you can deposit in the savings account that you've just opened. It is also important that you stick to your budget as much as possible.
- Cut down on expenses
Making more money per month would involve working more hours, getting a second job or starting a side business. While these are definitely possible, they're certainly not as easy as cutting down on some of your expenses. Think of certain expenses that you can reduce. For example, do you really need to have 200 cable TV channels if you only watch a few of them? Do you really need to eat out three or four times a month? Go through your expenses and see which ones you can reasonably cut down on.
- Keep your savings growing
Once you've managed to build up some savings, it would now be time to focus on how to make your money grow as much as possible. Besides savings accounts, there are other investment products that you may want to consider, like money market funds, mutual funds, bonds, certificates of deposit or stocks. You can ask a professional financial advisor for tips and information on investment products that you can use to keep your money growing. No matter what your choice of investment vehicle is, don't forget to add some money each month to your savings for even more growth.