Chapter 3 of Wealthing like Rabbits is all about making regular contributions to your Tax Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP). But we get it, sometimes you’re living pay cheque to pay cheque and you don’t even know where to find the cash to start saving.
That’s why we recommend you start small and take baby steps to become a savvy saver. We have 3 steps that we want you to take TODAY:
- Assess yourself and your financial wellness.
- Figure out how much room you have to save.
- Set up a Pre-Authorized Debit.
#1 Assess yourself and your financial wellness.
Okay, here’s the thing… how can you possibly know where to start if you don’t know where you ALREADY ARE?
Taking stock of your financial wellbeing is important. Sometimes we’re a little scared to examine our finances, but knowing where we are is how we will set ourselves up for financial success.
Take 5 minutes out of your day to answer our Financial Health Score Quiz. This quiz will give you some perspective on how healthy your finances are.
#2 Figure out how much room you have to save
A thorough budget is key to saving for your future. After all, you need to figure out how much money you can actually save every pay cheque!
We have tons of easy tips to make a budget, but budgeting really boils down to one thing: A plan to make sure you’re spending less money than the money that’s coming in.
Use this budgeting tool and get started now!
#3 Set up a Pre-Authorized Debit
In our last blog post, we talked about Pre-Authorized Debits (PADs) and how every little bit counts. Saving even $5 a pay cheque can be life-changing for your future self.
Before you give us a call, consider these three tips:
- Schedule your PADs for your pay days à the money you save will be directed to your savings before you even have a chance to spend it. This helps you stick to your budget.
- Increase your PAD when you can à We encourage you start out small, and increase the amount whenever you can. This is especially important to do if you get an increase in your income!
- Set up multiple PADs for multiple accounts à Do you have an RRSP and a TFSA? Have a separate savings account for your emergency fund? Work your budget and get a PAD going for each account.
Get your copy of Wealthing Like Rabbits
If you want to read this phenomenal book and fuel your passion to save, then we suggest you sign up to be a member of The Village. We’ll give you a complimentary special edition of Wealthing like Rabbits when you sign up!