3 Tips for Saving Accounts: Money In Your Pocket

Need some tips for saving accounts? Making sure you have savings is basic due diligence and is a means of being prepared. There are many reasons to put money aside, whether you are saving up for a trip, purchasing a home, or preparing for retirement. Having savings allows us to become more capable of helping those we love, ready to handle the setbacks in life and leave an inheritance for the next generation.

TFSA, RESPs, and RRSPs

A few tips for saving accounts with extra money in them, it is suggested that rainy-day savings such as an emergency fund, a Tax-Free Savings Account, or an education fund, like an RESP, can be smart investments. Financial advisers say the best decision depends on your debt load, how much money you have set aside, and how well you can manage with money invested in unpredictable stock markets.

It is recommended to use any excess money to top up your savings, such as an emergency fund, a registered education savings plan (RESP), a registered retirement savings plan (RRSP), or a tax-free savings account (TFSA). The excess money can also be used to pay down a mortgage, saving you money on interest in the long term. 

You can make an investment in an RRSP or a TFSA, or both, depending on your income. The RRSP is usually best for Canadians making more than $50 thousand because of the available tax deduction for making the contribution. It’s important to contribute enough to move down one tax bracket. The TFSA is usually better for Canadians already in the lower tax bracket who may not get the same tax-deduction benefits from an RRSP.

Living Benefits Insurance

You can also use the money to invest in living benefits insurance, which includes disability, critical illness, and long-term care coverage if you become ill and can’t work and need financial support to cover costs. Coverage is becoming more important for the growing number of Canadians who do freelance work or are on contracts with no company benefits.

Why Save Money?

Saving money is important because it can help you pay for large purchases and avoid debt. Saving helps protect you in the event of a financial emergency, reduces your financial stress, and provides you with greater financial freedom. It’ll help you protect the ones you love, provide for them as the next generation, and enable you to achieve the things you may have always wanted. That boat? That house? That new, fuel-efficient (or electric?!) car? That degree or diploma you’ve been dying to take? By using some of these tips for saving accounts, those dreams are suddenly a lot more attainable.

Not only does saving money protect you financially, but it will also give you a sense of confidence and pride that you are doing right by yourself by investing in yourself, your life, your future, and your dreams. Saving like this is playing the long game, but as you build up your savings, you’ll reap the benefits in a much more fulfilling way. You worked for this, and you deserve it!

That is our tips for saving accounts! Did you use any of these tips or have others you think are helpful? Follow CanScribe on Instagram to share your thoughts and ideas with us!

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