Awesome Wealthy Woman Says 'Automate Your Wealth'

Two of the most common New Year’s resolutions are to pay down debt and to start saving.

If these two are on your list for 2015, why not make it as easy as possible to achieve your savings goals?  (I’ll talk about paying down debt in another post).

How?

By automating your savings.

When you set pre-authorized payments (PAPs), you create a ‘set-it-and-forget-it’ savings plan.  One that will never forget to set the money aside and will ensure that you keep building your nest egg for the future.

There are several ways you can do this and it is to your advantage to maximize them (and your savings!)

First – if you have an RRSP or a company pension plan that you can contribute to by payroll deduction, this reduces the amount of taxable income on which your income tax is assessed (savings #1).  When you contribute the maximum allowable to your RRSP each year, you can claim your contributions on your income tax and generate a refund (savings #2).  BONUS TIP:  Re-invest your tax refund into your RRSP and you will continue to grow your retirement funds.

Second – if you have a TFSA (Tax Free Savings Account), you can set up an automated transfer each month, up to the maximum allowable contribution for the year.  This is a particularly attractive savings vehicle as you will never pay tax on the interest you earn on your contributions, and, you will never pay tax on the withdrawals you make from the account.

Third – if you set up an automatic transfer from your chequing account into your savings (aka Emergency Fund), you will find that you become used to your ‘new normal’ in terms of how much money you have available to spend.

The beauty of your automated savings is that you don’t miss what you don’t see (in your day-to-day spending account).

Meanwhile, your automated savings are going into one, two or three different accounts that will grow and provide you with the financial security you want for your future.

Although you can get away with contributing less when you start young, don’t let your age stop you from implementing these plans. 

It’s never too late to start building your future wealth and there is no better time to start than right now!

A word of warning – be sure that you do not exceed any legislated maximums for your contributions, in order to avoid penalties and, most importantly…

Leave the money in your accounts!!

The longer your money has to accumulate, the more you will have – thanks to the power of compound interest.

So get going this week and set up (or top up) these three accounts and then congratulate yourself for taking a very important first step towards your financial security.

Ready…set…SAVE!!

If you need some help finding the money to move into one (or more) of these savings accounts and connecting with me feels right for you, please call me at 705.881.1846 or 1.844.881.1846 or email me at Patti@AwesomeWealthyWoman.com and I would be delighted to speak with you personally.

“Forgive yourself for your past money mistakes. When you know better, you can do better.  Make it your business to learn how to ‘do’ money better.” ~ Patti Smith, Founder, Awesome Wealthy Woman International