Personal savings plans are an essential component of financial planning. With savings options and unsolicited advice around every corner, it can be overwhelming to navigate through different options, select the appropriate type of savings plan, and set aside funds for unforeseen expenses. While it may feel challenging to determine which path to take, saving for the future is essential to long-term financial stability, preparing for retirement, and reaching other personal financial goals.
A personal savings plan from Gifford Carr is a tailor-made approach to strategically preserving capital and maximizing growth potential for your future. We provide expert guidance and insights on various savings options, such as retirement accounts, budgeting, and investment opportunities. We offer custom tools and resources that simplify your savings plan and help you navigate complex savings products. We aim to empower you to achieve financial stability and realize your dreams through mindful savings and investment decisions.
What is a personal savings plan?
A personal savings plan is a tailored approach to savings that assesses your current financial situation and develops actionable strategies for saving and monitoring progress toward meeting your goals. With a well-designed savings plan from Gifford Carr, you can establish emergency funds, increase retirement savings, and fund various life goals, such as saving for education or retiring early.
Understanding your spending
Before developing a custom personal savings plan, Gifford Carr will conduct a deep dive into your current habits. Are you saving what’s left over after a pay, or spending what’s left? Do you have a budget that you manage your expenses within? Understanding and tracking expenses and household cash flow is a fundamental component of a successful personal savings plan and can identify if you are on or off track to meet your life goals.
FAQ
What elements should I consider as part of my personal savings plan?
While every individual is unique, some general elements to consider are:
- What is your familial status?
- If you have a spouse or partner, are your finances combined or separate?
- What are your life goals?
- Do you have or plan to have children? If so, do you plan to contribute to an education fund?
- Consider long-term care facilities, medical expenses, and other end-of-life care.
- Your general mindset around money and your finances. How would you rate your financial literacy?
- Do you make regular contributions or have pre-authorized contributions to a savings account set up with a financial institution?
What personal savings options are potentially available to me?
Registered savings plans (RRSP, TFSA, FHSP, RDSP) & Non-Registered savings plans with customized holdings based on your personal tolerance for risk, the timeline you are investing, and your overall financial goals.
Often, in the case of debts - is it better to save or pay down debt?
The first step is to review and identify the interest rates you are paying on your debts. A Gifford Carr expert can help you determine a strategy to manage your debt and saving habits in tandem.
How much should I be saving?
How much you should save is an individual factor based on varying circumstances. One of the most impactful pieces of information from a personal savings and financial review is identifying this. We can help!
How much should I have set aside for an emergency fund?
The general rule of thumb is a minimum of 3 months of household after tax income to cover general household expenses, such as mortgage, groceries, electrical and other costs. Your emergency fund will vary on a case-by-case basis and your access to credit.
