Canadians Like To Save

An article was published this morning stating that HSBC says “‘we’re generally a country of savers”. 

HSBC expanded on their claim by saying they found that “70% of Canadians have some savings, whether it be in investments or in or outside of RRSPs, while 30% are on a schedule of pre-authorized deductions”.  HSBC also said that ”55% of people will save money before buying something so they don’t have to use credit”.

On the surface that sounds like great news, and it is on all accounts. However, I would raise three of many basic questions that both you and I should be asking ourselves regularly:

  1. What would happen if you lost your ability to earn an income? 
  2. Do you have at least three to six months in an emergency account?
  3. Will you have enough savings to provide the retirement income you want?

I ask these three basic questions (there are many more or course) because “being a good saver” is not the only component of having a proper financial plan in place.  There are a number of components that will come in to play both now and in the future like a sudden loss of your job, disability or the need to support your aging parents on a financial level, to name a few.  Unless your whole plan is working together like one well oiled machine, you may run into a couple of snags if you aren’t properly prepared.

Your Take-Away: Kudos to those of you that are savers. That is unquestionably an amazing start and an essential first step, especially if you are “automatic savers” and have a monthly investment schedule already in place. My only suggestion is to not stop there. Step back and take a good look at where you are, where you want to be and determine if there are any gaps that should be looked at more seriously. A good Financial Advisor could help you streamline this process and get you where you want to be sooner. 

Live balanced.

Chris

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