Emergency fund savings strategy: Introduction
All of the financial experts stress the importance of saving, and they’re right. We’ve frequently blogged about it. We have also talked about the need to maintain an emergency fund savings strategy. Saving creates a solid foundation for living and for securing a comfortable retirement. In fact saving can even be taught to pre-school aged children.
Emergency fund savings strategy: Angus Reid Forum and Capital One survey
Sadly all this talk seems to be falling on deaf ears. According to a survey conducted by the Angus Reid Forum and Capital One, 33% of Canadians admit they don’t put anything into their savings on a monthly basis. And, instead of saving, they’re splurging on non-essentials.
Emergency fund savings strategy: What are Canadians splurging on?
The Angus Reid Forum and Capital One survey found that Canadians seem to really enjoy indulging themselves. And the amount of money they spend on these non-essentials really adds up.
- 72% dine out several times/month
- 71% regularly order takeout
- 50% buy daily coffees
- 44% are online shoppers
- 33% indulge in clothing purchases
- 23% spend on beauty services
Emergency fund savings strategy: Why is it so easy to splurge?
We now live in an almost cashless society. “It’s easier than ever to order in, hail a ride and shop online without ever opening your wallet, but you can lose sight of where your money is going if you’re not careful,” Capital One Canada CEO Brent Reynolds said in a news release. Years ago it was easy to keep track of what you spent because every time you made a purchase you had to pay with cash; if you didn’t have the cash, you didn’t make the purchase.
Emergency fund savings strategy: How can you get back on track if you’ve been overindulging?
There’s nothing wrong with splurging once in a while, as long as you’re saving. Make a budget and stick to it. Save before you splurge. Create an emergency fund for unexpected expenses or changes in your employment situation. Have a plan for your retirement.
Emergency fund savings strategy: Do you have too much debt?
If you’ve really overindulged and you’re at the stage where you can’t make your monthly payments, you need professional help; and you need it now. Contact a professional trustee.
The Ira Smith Team has a cumulative 50+ years of experience helping people who are facing a financial crisis and we deliver the highest quality of professional service. Make an appointment for a free, no obligation appointment today and Starting Over, Starting Now you’ll take your first steps towards financial freedom.
