Do you save enough money?
How much money should you be saving each month?
In all the meetings with people one of the biggest mistakes I see is they are not saving enough money… for anything, retirement, emergencies, kids education.
I am not saving enough. For me that changes today as I write this to you guys.
Let’s take a look at a couple examples and perhaps why.
I believe one of the reasons most of you don’t save enough is because you don’t know how much to save.
For instance, many business owners I know all their money is going back into the business. Their hope is that one day they will sell their business and use that money to retire on.
Second I believe many of you are living pay check to pay check and have no spare money after all expenses. According to BMO, more than half of Canadians have less than $10,000 set aside for emergencies (https://www.theglobeandmail.com/globe-investor/personal-finance/household-finances/more-than-half-of-canadians-have-less-than-10000-set-aside-for-emergencies-bmo/article26172527/ )
Here’s some good news according to a 2017 CBC article 65% of you are saving for retirement. That’s good. The problem is probably not enough. (https://www.cbc.ca/news/business/census-canadian-saving-1.4287219)
And for whatever reason money scares people. They don’t like to talk about money. I can tell you from personal experience the minute Erin and I talked about money and itemized where everything is going was a huge eye opener and sense of relief. Now we talk weekly about it.
So what’s the answer?
How do you save more?
How much should you be saving?
Those answers depend on a variety of factors but to start
get your financial road map done
Get clarity around your values and your goals and put it on paper
Protect yourself in case something happens.
Let me help you out with some ideas and strategies.
If you have a mortgage and kids you should have enough insurance on each parent to cover the cost of the mortgage and some income for the kids should you die - have mortgage insurance that’s a different question all together.
Retirement - what do you want to be doing? What lifestyle do you want to live in retirement?
How much do you currently have saved for retirement? Most likely not enough so increase the monthly savings by $25 this week.
Get your emergency fund funded.
Take action daily and give your money the attention it deserves.
So here’s the bottom line most Canadians aren’t saving enough. Start finding ways you can increase your income and put the extra money to savings.
If you do that you’ll be well on your way to financial freedom