3 Savings

Saving money is a basic concept of financial planning, and key to financial success. Yet many of us don't have a formal savings plan. Without such a plan, the chances of ever saving enough money to meet long-term financial goals or achieve financial security are very slim.

It seems simple. In order to save money, you need to have "extra" cash, right? This is a common misconception. Having a spending plan (aka "budget"), will help you create money for savings. Most of us, by setting spending goals, can manage to save regularly, so if you're tempted to hit your back button because you simply don't have enough money to have a formal savings plan, STOP!

3.1 Short-term and long-term financial goals
Set a few short-term and long-term financial goals to work towards, like a down payment on a car or home...

3.2 Savings account
Set up a separate savings account. If you mingle your savings with your regular cheque account, you'll almost certainly dip into your savings and may never pay them back...

3.3 Budget
If you don't already have a written budget that includes tracking your expenditures each month, begin one now...

3.4 Direct credit to savings account
If possible, have your employer deduct a set amount from your pay checque each pay period and deposit it into your savings account automatically...

3.5 Ways to save money
Consider refinancing your home loan. For every $10,000 of your mortgage loan, 0.5 % difference in the interest rate saves you over $40/year or $3.40/month in interest expense...

3.6 Managed Funds
Start saving, Power of Compounding Interest, Reduce the amount of high interest debts...

3.7 Active versus Passive Investor
Once you've determined the asset allocation that is best for you, you have to implement it via the investments you choose for your portfolio...

3.8 Interest
In financial circles interest is more commonly known as the charge made for borrowing money in the form of a loan...

3.9 Calculating Interest
Interest paid on borrowed money is calculated as a percentage...

3.10 Magic of Compound Interest
This involves calculating interest for terms longer than one year. How it works is that the interest earned on the previous year is worked out and added to the amount invested...