6 Steps to Saving For Your Goals

Investia Financial Services Inc.

Whether your dreams are big or small, you’ll need to build up the necessary funds to make them a reality. It’s never too early or too late to invest. It’s all about setting goals and being disciplined. Here are the key steps to get you there.

1. Set your goals

To achieve your dreams, you have to invest time and money. Whether you’re working on the itinerary for your next trip, designing a new kitchen or making plans for retirement, you need to set goals and give yourself time to achieve them. Regardless of what kind of dreams you have, the best way to make them happen is to start early and work gradually toward it.

2. Figure out your timeline

Set a realistic timeline and stick to it. To make it easier to save, think about making your contributions via preauthorized debit. You can transfer money from your bank account to your savings account and decide the amount and frequency of your contributions to help you reach your objectives. That way, your savings will be automatically built into your monthly budget.

3. Make a budget

You’ll need to determine how much you need to save for your goal and how you’re going to do it. But first you need to know where your money is going. Make sure you know your fixed and variable expenses and set up a budget. Reduce nonessential expenses and put that money aside.

Did you receive a bonus at work? A gift from your family? A big tax refund? Consider putting this money into your savings to help you achieve your goals even faster. Whatever you’re saving for, it’s important to save on a regular basis and make sure you have control of your finances.

4. Grow your money

Are you an organized saver and already have a savings strategy in place to achieve your goals, but you’re asking yourself what more you can do to grow your money? There are many investment products and services available. But how do you choose the right one?

Here are a few options:

TFSA

Choosing a tax-free savings account (TFSA) will help you grow money, that otherwise would have just sat in your piggy bank, without having to pay taxes on it.

You can use the funds you save whenever you want, for whatever purposes you choose or you can use it as an emergency fund to prepare for the unexpected. The contribution limit is not dependent on your income; you can contribute to a TFSA up to the maximum amount set by the government.

RRSP

Opening a registered retirement savings plan (RRSP) will help you grow your money for retirement tax-free. The contribution limit for your RRSP each year will depend on your income.

Contributions to your RRSP are deducted from your taxable income and you can, depending on your situation, receive significant tax refunds. Contributions are taxable only when you take them out of the RRSP, in other words, when you retire.

FHSA

An FHSA is a tax-free savings account designed to help future homeowners save for the purchase of a qualifying first home in Canada.

Combining the advantages of an RRSP and a TFSA, the FHSA gives you a deduction that reduces your annual taxable income and allows you to generate tax-free returns.

The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances. This presentation was prepared, by Paul Davidson, Investment Fund Advisor, for the benefit of Journey Wealth a registered trade name with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc. The information contained in this presentation comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any securities. Mutual Funds are offered through Investia Financial Services Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the Fund Fact sheet or prospectus before investing. Mutual funds are not guaranteed; their values change frequently, and past performance may not be repeated.