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September 05, 2021

Could you save an extra 25 bucks a week?

While 59% of Canadians like to think of themselves as “savers” rather than  “spenders”, about half of them confess that they’re unable to put away even an extra $25 a week, reports ING Direct.

Debt Not that they wouldn’t like to do better. 41% said that being able to save this relatively small amount per week would make them happier, and get them closer to reaching their most important financial goal this year, getting out of debt.

But roughly a third of respondents admitted that they were nowhere close to doing that, although they remained positive in hoping that they can still get there soon.

"What is certain is that rising interest rates are going to force all Canadians to take a second look at personal finances," says ING's CEO Peter Aceto

"Things bought using credit cards, a mortgage with a variable rate – all of that is about to become more expensive with each passing day. What makes the most sense to me right now, with a rate hike on the horizon, is to be prepared by making changes today," he advises.

It's all about changing some everyday habits, Aceto maintains: "Instead of focusing on how to make big dents into debt repayment or radically changing a standard of living, think about cutting back some of the smaller daily spending, which is often unaccounted for and adds up significantly over the course of several months."

What about you? With rates remaining low for the moment, is debt reduction still a priority? Or is simply making those payments good enough for now?

By Gordon Powers, MSN Money




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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...

Jason BucklandJason Buckland

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...