Why save?

Here are 8 great reasons

Why save? People save for all sorts of reasons and to reach many different goals. Whatever the motivation, it’s important to have a savings plan. Here are some great reasons to save.

  1. Unexpected costs can put you in debt quickly so it’s a good idea to have money set aside for a rainy day, and sometimes it can rain really hard. The benchmark is to have 3 to 6 months of expenses set aside in the event you suffer an emergency such as job loss or illness.
  2. Saving for your future education is another great reason. Each year more people return to school to earn their masters, doctorates, or to update their skills and earning power.
  3. Save for your children’s education and give them a leg up. You can put funds aside in a long-term savings plan for post-secondary education or save just enough to cover class trips, sports team activities or other lessons.
  4. Tired of renting? Save for a down payment on a house. You can get a much better deal with a larger down payment towards a home. And put a little extra aside for moving, legal fees and other closing costs.
  5. Ever wonder why your car, your roof or other items like appliances seem to need repair or replacement at the worst financial times? Let’s face it – at some point you’ll need savings to help you manage these costs better.
  6. Saving for a car down payment reduces your monthly payments and insurance costs. Some dealerships give a deeper discount if you can pay for a large portion of your new car in cash.
  7. Save money for your retirement! No one likes to think about retirement when they’re young. But the earlier you start, the faster your money will start working for you and you can retire sooner. Try to put away 10 to 15 per cent of your gross income into retirement savings annually.
  8. Save now for vacations, big screen TVs or a new spring wardrobe and relax knowing you don’t have to pay it off for months to come.

Looking for more savings tips? Check out the Financial Consumer Agency of Canada’s Financial Toolkit. You’ll find lots of useful information that can help you to make more informed decisions.

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