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February 25, 2022

Do you have a plan to save your money?

348608_2617It's always good to have a plan -- especially if you want to save money.

You can always expect the unexpected that can sometimes sideline your anticipated savings goals like car repairs, house repairs, rent hikes, tax increases and uncovered medical expenses.

But whether you're saving for a rainy day, your retirement, education or a vacation it is always a good idea to have a fixed savings plan in place to help you reach your goal.

A new report by BMO Bank of Montreal found that many Canadians have a savings goal in mind but are falling short of that goal due to lack of planning.

For instance, the survey found that Canadians plan to save on average about $9.859 this year but 31 per cent have no plan in place to help them reach their target goal.

Ernie Johannson, Senior Vice President, Personal Banking, BMO Bank of Montreal, says having a plan in place is the key to achieving both short and long-term financial success.

"We commend Canadians who are committed to making saving a priority this year and would encourage them to create a financial plan to assist them in reaching their goals," says Johannson.

According to the report, more than half of those polled are currently not putting away enough money to meet their savings goals with one-third of this same group lacking a savings plan. Many are just putting away what they can.

The report also revealed that 25 per cent of those polled do in fact have a fixed financial plan and another 35 per cent have a rough plan that includes making regular contributions to their savings plan.

it also discovered that those who have a fixed plan in place are the most likely to be saving for their retirement followed by those with a rough plan in place.

But the survey also found that if Canadians plan on reaching their long-term savings goals they may have to up the ante from the current three to four per cent range to just under nine per cent.

"It can be challenging to manage multiple financial priorities, such as saving for your child's education, paying off debt or investing in your retirement," says Johannson, suggesting that Canadians consider meeting with a professional financial advisor in helping them achieve their savings goals while managing their day to day living expenses.

in the long run, it pays to have a savings plan in place.

By Donna Donaldson, MSN Money

Do you have a fixed financial plan in place or are you just putting away what you can?






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Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

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The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...