Have you heard of auto-saving strategy? Don’t be intimidated by this fancy term—the concept is actually pretty simple. It’s a great way to make saving easy, and more importantly, consistent.
Here’s what’s so great about this strategy:
It’s the easiest way to contribute to your RRSP or TFSA
Invest small amounts regularly (instead of one big amount each year) and it’ll be easier to manage your budget and plan out your finances. All you need to do is choose between an RRSP or TSFA, set up automatic contributions, and say ADIOS to the stress of saving!
It prevents you from making impulsive investment decisions
The best time to buy investments is when prices are low, and the best time to sell them is when prices are high. You don’t need to be a financial advisor to grasp that important point. But having said that, it’s also easier said than done. When it comes to investing, people tend to trust their emotions, which (let’s face it), doesn’t always agree with our logic. By making regular contributions you’ll always have an active presence in the market, and what’s equally important, you’ll avoid impulsive and emotionally-motivated behaviours.
You’ll benefit from both market highs and lows
With regular contributions your average purchase price decreases over time and you’ll maximize the long-term performance of your investments. So don’t worry if you see the markets take a dip– you’ll benefit in the long run.
To find out more about this subjet, please visit the “Financial wellness Centre” in the secured section of the website via My account