it’s time to prioritize your savings plan
January 17, 2020
How do dinosaurs pay their bills? With Tyrannosaurus cheques! Just kidding… they use real cheques and save their money in a responsible way.
All jokes aside, creating a solid savings plan is an important part of the savings process. If you don’t know where to begin or have been putting off your plan for some time now, you’ve come to the right place.
Our 9 steps make the process easy-peasy, lemon squeezy. (People still say that, right?) Either way, take into consideration the following steps and you’ll be on the way to a solid plan and money in the bank.
Step 1: Get a savings account
Saving your money in a piggy bank or under your mattress is a big no-no. If you’re passed this stage of your savings plan, you may be interested in learning about Sunova’s savings account options. We offer:
A savings account with a high rate of return, a 100% deposit guarantee, and two free debit transactions per month.
A no monthly service fee account perfect for the US traveller (whether avid or not).
Tax-Free Savings Account
A Government of Canada issued savings account that allows you to save money without paying taxes on earned interest, so your money grows more quickly.
Step 2: Sign up for nickel + dime savings
When you’re signed up for nickel + dime savings, every time you make a purchase with your Sunova debit card, we will automatically round up your purchase to the nearest dollar amount and transfer the difference from your chequing account to your Superior Savings account. It’s a great way to save without having to think about it.
Step 3: Auto-transfers
Speaking of saving without thinking, the use of an auto-transfer is another strategy to add to your savings plan. You can set up recurring transfers through Sunova GO Web, or by talking to our Help HQ team or someone in your branch. If you already have an auto-transfer setup, try increasing your deposit by $5.00 for more savings.
Step 4: Start an emergency fund
Now that you’ve got some basic savings tools under your belt, it’s time to put them to good use. Consider having your auto-transfer or nickel + dime savings go straight into an emergency savings fund. We recommend setting a goal of how much you want to put into this account, but a good rule of thumb for your savings plan is about three to six months of expenses
Step 5: Establish goals for your savings plan
Knowing what your saving for is a great way to stay motivated during the savings journey. Whether it’s small like a big screen TV or big like a down payment for a home, people who set goals are usually much more successful than those without.
Step 6: Budget
Setting a budget is a great way to stay on track. A good place to begin your savings journey have a solid savings plan is the 50-30-20 rule.
- 50% of your income should go to needs (like food, housing, transportation and bills.)
- 30% to your wants (hobbies, dining out, or shopping. Anything FUN!)
- 20% into your savings.
Step 7: Pick up some tips
Being a credit union, we get a ton of questions on the best tips, tricks, and strategies for saving money. The following blog posts are sure to help you create a better savings plan:
- 4 saving money questions you’ve definitely asked yourself
- 6 saving tips from your favourite St. Bernard
- 3 reasons why it pays to get an RRSP in Manitoba
- Saving tips for students in Manitoba (if you want to get ahead)
- the truth about TFSAs (and why you should open an account today)
- how to save money during the holidays
- budgeting for beginners
Phew. We know that’s a lot, so feel free to take it slow when catching up on your ‘homework’. Don’t worry, there won’t be any tests!
Step 8: Treat yourself every once and a while
It’s okay to treat yourself every once and a while. Saving is important but rewarding yourself from time to time will keep saving an enjoyable thing and not a chore that begs to be ignored. So, once in a while, break free of your planning and do something on a whim. Buy that thing you had your eye on or go treat yourself to a fancy ice cream.
Step 9: Learn your savings type
Want to win a $500 savings boost? Take our quiz and learn what your savings type is. You’ll gain some insightful tips and be entered into the draw. You have until February 15, 2020 to enter so don’t miss out!