Not saving is stupid!

According to a TD poll last year, 41% Canadians between the ages of 18 and 34 do not currently contribute to an RRSP. Twenty percent are counting on CPP, a lottery win or an inheritance. Ha!



Online only.


I’ve been 18 and I’ve been 34 and I know the demands life puts on you. Home buying, having children, being self-employed, hey, I’ve done them all. And when my son was diagnosed with Autism, I put my career on hold to deal with that. But I’ll tell all you non-savers something: If you don’t start to save you’re headed for disaster. Not saving is a sure way to have nothing later. And learning to save is a habit – anyone can establish it.

I’ll give you that some people are natural born savers and that others have to struggle. If you feel as if you barely make enough to live, if you’re in debt, if you think that because you work hard you deserve nice things, you’re making an excuse not to save.

If you want to become a saver, focus on making small, manageable changes that will stick. Don’t give up coffee completely. Just decide that you’re going to trim back your coffee habit and send all the money you’re not spending to your savings. Becoming financially responsible doesn’t mean you’re doomed to a life of boredom. You’re just going to trim back and really appreciate the small luxuries when they come along.

It doesn’t matter how little you start saving. A dollar a day is good. Set up a savings account to do an automatic transfer of money from your chequing account every month. As you earn more, set aside a part of all your new earnings to boost your savings. If you don’t, your lifestyle will inflate – you’ll get used to spending more money – and you’ll have nothing to show for your hard work later on.

3 comments on “Not saving is stupid!

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  2. A TFSA *is* a great option for a lot of people. And if you're not sure what to do about RRSPs yet, open something simple (like ING's Tax-Free Investment Savings Account) in a TFSA and just put *something* away while you figure things out.

    Remember: SOMETHING is ALWAYS better than NOTHING. Sure, "you won't get very far" on $30/mo, but you're certainly going to get farther than $0/mo!


  3. SAving if good – it's also something that happens when you decide not to spend what you don't have. We've never bought anything except our first home unless we had the cash to pay for it. Yes we lived frugally and our kids learned to have free fun. They also learned to earn the money we gave them – chore by chore with payment at the end of the week and never withdrawal of allowance as punishment. they learned to save for the bigger things because we guaranteed to match what they saved when the goal was in view, but we didn't match anything they spent on nothings, and they didn't just get to shop and spend – ever. They're both financially secure now too. I introduced the term Positive Parenting in 1980 and have been helping parents as a psychologist for over 40 years. IT works.
    Dr Chris N


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