Recent reports around savings rates in Canada show the importance for every Canadian to save more (and preferably invest those savings over time).
The average savings rate for Canadians stood at 1% over the first three quarters of last year, highlighting the effect lower interest rates have had on savers, who have instead chosen to borrow to finance many aspects of everyday life (including investing).
Mortgage rates have been rising of late, feeling the upward pressure Bank of Canada overnight rate hikes have had on Canadian banks, meaning Canadian consumers and investors have often been forced away from saving to making higher payments on lines of credit and variable mortgages, a reality which can pose risks to the economy for those who are not saving a significant portion of their income every month.
One tip which is often given for those who wish to increase their savings rate, and be an outstanding personal finance role model for others, is to "pay yourself first."
By stashing aside a fixed amount of money every month into a savings vehicle like a registered retirement savings account or a high interest savings account, one has less incentive to pull the money out, and a greater incentive to watch said investment grow (tax free in the case of a TFSA).
Managing expenses vs. income, creating a budget, and sticking to a savings plan are great ways to avoid falling prey to becoming yet another statistic.
Invest wisely, my friends.
