Once you have a savings plan in place, try to find ways to save even more. Here are four ideas to try.
Make regular contributions
If you’re like a great many Canadians, you make one lump-sum contribution to your RSP every year, or scramble to pull together the money for your winter vacation. Making smaller contributions throughout the year is much easier and less stressful, no matter how large or small your savings goal.
Can you afford $25 every payday? That’s $650 a year for your savings plan. Or save $50 each week, and you’ll put away $2,600 each year.
If you invest in mutual funds, this approach has another benefit: dollar-cost averaging. This means you buy more units when prices are low and fewer units when they are high. While this technique doesn’t guarantee a profit or protect against a loss, it could result in a lower average unit cost over time.
You can use the Pre-Authorized Purchase Plan to buy mutual funds at regular intervals for your RSP or non-registered account. To get started, log on to EasyWeb Internet banking to set up a Pre-Authorized Purchase Plan, visit your local TD Canada Trust branch or call 1-866-222-3456.
Make saving automatic
The most effective way to save is with an automatic savings plan. That way, you make the decision only once, and saving happens on an ongoing basis.
With the Pre-authorized Transfer Service from TD Canada Trust, you can set up a transfer from your chequing to your savings account, Retirement Savings Plan (RSP) or Tax-Free Savings Account (TFSA). Choose the amount, frequency and dates that work for you.
Then sit back and relax, knowing that you are saving towards your important goals.
To set up your Pre-authorized Transfer, just log in to EasyWeb Internet banking. Go to Payments and Transfers, and choose Set up Pre-authorized Transfer Service from the left menu.
Bump up the amount you save
Increase the amount you put into savings in small, manageable increments.
If you’re using the Simply Save program, start with a small amount such as saving $0.50 per transaction. After a few months, try bumping it up to $1, then $2.
Increase the frequency
If you are comfortable with the amount you are setting aside through your automatic savings plan, try increasing the transfer frequency, from monthly to biweekly, or from biweekly to weekly.
Just log in to EasyWeb to make changes once your savings plan is set up.