Setting Savings Goals for the New Year

by Achieva Financial
Jan January 06

It’s a new year and a common New Years resolution is to increase the amount of money you’re saving, whether it’s for your retirement, a home or a future expense. So how can you set yourself up for success this year and reach your savings goals?

Determine How Much You Need to Save

How much you need to save and the time period you have to save it in will always vary depending on what your goal is. Look at what your goal is, whether it’s saving for a vacation or your retirement, and determine how much money you need to save to reach your goal and how long you have to save that money. With this, you can come up with a monthly contribution to your savings account, TFSA or RRSP.

What Savings Vehicle is Best?

The best place to save your money will vary, depending on what your goal is. If you have a savings goal that has a timeframe of one year or longer, using a GIC will help you earn higher, more predictable returns than your savings account. With Achieva, you can invest in a GIC with a minimum balance of $1,000 per GIC, and our terms range from 1 year to 5 years. A GIC laddering strategy is a great way to ensure you benefit from the best interest rate at all times, while giving you access to some of your funds every year in the event you need them.

However, saving in a high interest savings account is a good option for shorter term goals. You can even have different savings accounts dedicated to your different financial goals, which will allow you to put your savings into different “pots”.

Look at your Finances Regularly

Keep on top of your finances by regularly looking at your spending and your accounts to see if you’re on track to reach your goals. Tracking spending is a great way to determine where your money is going, and can give you a sense of where you may be over-spending.