Savings Plan
In times like these, a great resource is save-money.ca. Savings is the new buzzword. Evidently we are to have at least 6 months of expenses covered in savings (some suggest a year as it could take up to 6 months in the current job market to find other suitable employment if laid off).
Savings do not develop all at once, but constantly contributing a little can add up substantially over time.
Ways to save money right now.
We will post more savings ideas here soon.
In Canada families with children should definitely take advantage of the RESP (registered education savings plan) as the government adds a 20% bonus to funds up to a certain amount every year. This is a great way to put together a college savings program when the kids are just getting into grade school. By the time they are ready for college, they will have saved a princely sum subsidized by the Canadian government. Even if the investments do not do well (the selected Fund you chose to invest the RESP in), the 20% bonus more than makes up for that and averaging in regularly over time is sure to yield a great Educational Savings account and give the kids the gift of continuing education to help prepare them for success beyond school.
Contributing to Retirement Savings plans can also help save on taxes. However you structure a savings plan, basically put aside a certain percentage of monthy income into savings. If there is not enough money left over to do this every month, then you should cut back other non-essentials or work on increasing household income.