Some saving best practices to consider

Most people have methods to improve their physical health. There are also ways to improve your finance and investment health.

Here are five best practices you may want to consider:

1. Save more.

Set aside a certain amount of money every month for your retirement savings and/ or other short-term goals. You may wish to make a monthly budget – then, chart your progress month-to-month and make changes, if needed.

By developing good savings habits and having the funds in place to pay for upcoming expenses, you may not have to resort to using your emergency fund or credit card.

2. Avoid and reduce debt.

Carrying credit card balances or other high-interest debt may significantly reduce your spending power, now and in retirement. Try to pay down your debt in regular installments. If you pay down debt now, you will have more to spend in your later years. Then, the next time you are considering purchasing something on credit, ask yourself if you really need it.

3. Don’t put all your eggs in one basket.

Canada Pension Plan (CPP) and Old Age Security (OAS) alone will likely not be enough to support you in retirement. Personal savings [like Registered Retirement Savings Plans (RRSPs)] and employer based pension plans MEPP may help you fill in the gap. Consider increasing your retirement savings through RRSPs.

4. Set and review your investment and retirement goals.

Write down a list of your goals (in order of significance). Be specific about what you would like to accomplish and how you are going to get there. It’s great to dream big – just make sure to make your retirement goals realistic. Review your goals periodically – you may have to revise them depending on your personal situation.

5. Don’t let your emotions guide your investment decisions.

Avoid making impulsive investment decisions based on the ups and the downs in the market. Review the reasons why you are investing in specific investment options. Focusing on your long ‘term goals may help you keep perspective.