Save an extra 8% per year

The beauty of an extra paycheque

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Three-paycheque months don’t happen often, so you should capitalize on them when they do.

5 comments on “Save an extra 8% per year

  1. Out here in BC most people get paid on the 15th and the 30th of the month. So instead of looking foward to those longer months, we have to make the dollars stretch farther when you end up with an extra mortgage payment coming out those two months. Any suggestions for that?

    Reply

    • Hi Lucy,

      We suggest setting up an automatic withdrawal schedule that deposits 8% of each paycheque into a high-interest savings account. This will allow you to access your money when you need it, and you'll earn a little interest too.

      For an idea of which account is right for you, see the "Compare Savings Accounts" widget on the right side of the page. Check out the "view all available options" link for best results.

      Cheers,
      MoneySense staff

      Reply

      • Drat, put that in a new comment that Lucy might not see.

        Mathematically, 8% of a paycheque may be more or less than is required – it depends on the size of the paycheque and the size of the mortgage!

        I think you may want to divide the mortgage payment by the number of pay periods before it and put that away instead. That's probably the surest way of doing it. Alternatively, you can base it on a percentage of your MORTGAGE, but make sure that you'll reach the target by the first deadline!

        Reply

  2. Thanks!

    Reply

  3. Mathematically, 8% of a paycheque may be more or less than is required – it depends on the size of the paycheque and the size of the mortgage!

    I think you may want to divide the mortgage payment by the number of pay periods before it and put that away instead.

    Reply

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