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How to start saving for retirement

Wednesday, September 13, 2017

Most Canadians start thinking about their retirement early, but not necessarily about how they can afford it. When it comes to saving money, arguably the most important factor is premeditation. Consciously putting aside a percentage of your pay cheque or another specific amount each month is an excellent way to start growing your retirement fund—ideally, your actual RRSP. Saving tends to go hand in hand with budgeting because placing limitations on your everyday spending will certainly increase your likelihood of having leftover finances to tuck away for the future.

Abakhan&Associates-debt-help: chalkboard text that reads “earn, save, invest, retire”

Seeking debt help from a Licensed Insolvency Trustee can also make saving for retirement more seamless and habitual with helpful solutions to implement right away. The earlier you start saving, the better—so long as you can afford it. As soon as you graduate from university or graduate school and take on regular employment, taking your money situation into account for your eventual retirement can be essential to success at reaching this point.

Tips for ongoing retirement savings

If it seems unrealistic at the beginning, try simply putting $1 in a jar each day. If the month ends and it was completely manageable, keep going or even try putting $2 per day for the next month, and so on. If you would rather not have the money lying around, another solution is automatically transferring approximately $50 from your monthly pay cheque, as soon as you deposit it, into your high interest savings account or directly into your RRSP.

Many companies offer to match your RRSP contributions, as well, so ask your employer. Making small sacrifices, such as cooking dinner at home every night and taking leftovers for lunch the next day, will also help you save money. Cutting out cable and visits to the movie theatre by relying on Netflix or similar service is another simple way to lower expenses and increase savings. Exploring tourist attractions in your own city, rather than paying for flights and hotels elsewhere, can easily save you thousands of dollars when you want to take a vacation from work.

Consulting with a professional

Speaking to a financial advisor may only seem necessary if you need debt help, but it is never a bad idea to get tips directly from a professional. Licensed Insolvency Trustees like Abakhan & Associates in Vancouver and across the Lower Mainland can review your particular circumstances with you and develop a customized plan that will benefit both your children’s future and your own retirement plans. Contact us today for a free consultation!

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