You may find it easier to save if you know what you’re saving for. To help you get started, here are 5 common reasons why people save.
Five reasons to save
- Handle surprise bills and emergencies – What would you do if the car you drive to work breaks down? Or you get sick and have to take time off work? If you have savings, you can better deal with surprises like these without taking on debt.
- Have more choices – Have you ever considered starting your own business or moving to a new city? Having money set aside can make it easier to make major life changes.
- Reach short-term goals – such as buying a home or a car. The more you save toward these goals, the less you’ll have to rely on loans.
- Reach long-term goals – such as a comfortable retirement.
- Help family and loved ones – Do you want to help pay for your kids’ education? Will an aging parent need to live with you one day? Having money saved may help you do these things.
Start small: When you first start saving, don’t worry about how much you can put away. The important thing is to get started. Start small, and don’t dip into your savings unless it’s an emergency. You’ll need that money to reach your goals.
Content in this section is provided in partnership with Investor Education Fund, a non-profit organization founded and supported by the Ontario Securities Commission that provides unbiased and independent financial tools to help Canadians make better money decisions. To find out more, go to: GetSmarterAboutMoney.ca