A Bank of Montreal study is indicating that many Canadians are stressed out when RSP time rolls around as we try and find funds to contribute to our plans.
BMO says that 60% of Canadians are anxious over finding money for an RSP contribution as the deadline arrives and 49% of those who contribute do so in one lump sum.
While the lump sum is better than no contribution, contributing to your RSP throughout the year makes more sense and takes the stress out of finding money. This is especially true when you are paying your credit card bills after the holidays. Smaller amounts of money—particularly with an automatic preauthorized contribution plan—are easier to manage monthly. Plus, earlier contributions allow your money to begin growing faster in your plan.
Check out our video, Make monthly RRSP contributions