Tips For Using RRSP’s

rrsp2

Investing money is a big part of anyone’s savings plan. If you don’t have a strategy in place, you are going to end up spending a lot of money that could have easily been saved. Instead of wasting money, RRSP’s are often sought after as a ‘go to’ solution by people. They are easy to invest with and you are able to save a lot of money in a short period of time. Yet, what is the right way for using these RRSP’s and getting the most out of your investment? Let’s take a look at three of the most significant tips to keep in mind.

Small is Big

This is one of those mistakes people tend to make and assume is right. They will believe going small is just not worth it. You won’t be making enough to make it feasible to invest a small amount into this type of investment.

This is incorrect as starting with smaller amounts will ensure that you get a taste of how things work. Going in smaller bursts is better than going with large sums and then regretting what you have done.

It is easier to deal with minimal loss rather than losing everything and not getting anything out of it. Even though this is all about saving money and you won’t really lose anything, you will still be putting it aside and that is easier to do with a lesser amount rather than a larger one.

Know How Much You Need

What is the right amount for you when you retire? There should be a set number that you have in mind right away. This is smarter than getting stuck with nothing at the end or an amount that is far less than you wanted or require.

Remember, this is easy to deal with now rather than after your retirement when an income isn’t coming in.

Beneficiaries

Don’t let the money go to waste in case you pass away. This can happen to anyone and that is a part of life. However, you should always name someone who would receive the money in case you are not able to recoup it.

Most people with name their spouse, kids, or just any family member they seem fit to handle the money after they are gone.

Be patient with this choice, but do make one as that is a key part of ensuring the money does come back.

These tips should come in handy when looking to begin saving money.

Here’s another great video I found on this subject:

A lot of people get scared of the process because it seems foreign to them. This is true, but most people have to go through this learning curve to get the most out of the money that is being saved. If you don’t approach this in the right manner, you won’t be able to optimize the strategy in a manner that is going to serve you well in the short and long-run. It is essential to get it right by following the tips presented here.

How To Save Money Without Depriving Yourself

cashIn the current economic climate, most of us need to save money. However, it can be demoralizing to have to cut down on the things that you love. There are some things that you can do, however, that will make it easier for you to save money.

Have a Goal

Having a goal is one of the most important parts about saving money. If you have something to save for it will be easier to avoid frivolous expenditures. You don’t have to live like a hermit just so that you can enjoy a nice holiday, but being mindful of how your choice to eat out instead of taking a packed lunch to work might impact your long term savings goals will make it easier to make sensible decisions.

Shop Around

If you do want to buy a new gadget or treat yourself to something else luxurious, shop around first. Compare prices, and look for voucher codes. Why pay more than you have to when you are treating yourself?

Save the Pennies

Some banks offer a rather useful feature now that will “round up” your spending. If you purchase something for $19.95, then the bank will treat that as a $20 expenditure, but transfer $0.05 to your savings account. This may not sound like a lot, but those pennies will mount up quickly.

Slash Your Bills

Many people are spending more than they need to on household bills. You could save a lot of money simply by changing your utility supplier, investing in a water meter and cutting down on your water usage, or even making smaller changes such as turning the thermostat down by a single degree or using your air conditioner a little less often.

Watch Your Brand Choices

Do you buy particular brands because you actually prefer them, or because buying those brands is a habit? If you are buying a brand out of habit, then maybe you should consider scaling down to a cheaper version. Sometimes cheaper products are a false economy, and some products are simply inferior, but this is not always the case. Next time you’re doing your household shopping, pick a product to scale down and see if you like the supermarket own brand version of it. If you do, well done, you’ve saved yourself some money. If not, buy the more expensive version next week.

Change How You Pay

If you’re not on direct debit for your main bills, swap over. Change to paperless billing too. Many companies offer discounts for doing this, and the savings could be substantial over the course of the year. You could save a fortune if you’re the sort of person who sometimes forgets to pay on time, because paying by direct debit will not only net you a discount, it will help you to avoid late payment charges too.

As you can see, it’s easy to save money with just a few simple lifestyle changes. If you make small changes they will be easier to stick to and you’ll find your goals much easier to reach.