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Updated January 21, 2025
Have any goals? Think about saving regularly.
Have any goals? Think about saving regularly.
See the positive impact of automatic savings on your nest egg.
2-minute read Just like a bill that’s due regularly–think electricity, internet or credit card–automatic savings are a very good habit to have. Why not pay yourself like you do these companies? There’s a solution: automatic savings. Just like a long journey starts with a single step, achieve your goals (e.g., home, retirement, car, trips, renovations) one payment at a time. Automatic savings make it easier to save; you set aside money regularly and automatically. These are payments withdrawn directly from your account, rather than a big amount that you set aside every now and then. You set the amount and frequency of your payments, which you can change as you see fit. All without you having to think about it.
Automatic savings vs. a single annual contribution.
In addition to its ease and flexibility, efficiency is also a significant benefit. For example, periodically investing in mutual funds gives an average cost of your position compared to an annual contribution. You therefore buy more units when the price is down and fewer units when the price is up. Automatic savings, also known as systematic savings, is a proven way to prepare for retirement. It enables you to build tax-sheltered income regularly. The following table clearly shows that it is preferable to contribute to your RRSP monthly rather than once at the end of the year. In this hypothetical case, an investor who started their contributions at 30 would have $6,024 more when they retired at 60. Wind in your sails: Automatic investments in mutual funds accelerate results and make your money work harder for you, bringing you closer to your destination every time.
Compare automatic savings every 2 weeks with saving once a year.
Note: This table represents a fictitious example based on an investment in mutual funds at a 5% rate of return.
Investment returns by decade.
Investment amount | |||
|---|---|---|---|
$1,300 once per year | 10 years $16,351 | 20 years $42,986 | 30 years $86,371 |
$50 every two weeks totalling $1,300 | 10 years $16,955 | 20 years $45,234 | 30 years $92,395 |
Difference in return | 10 years $604 | 20 years $2,248 | 30 years $6,024 |
Who is this savings solution for?
Automatic savings are for everyone, regardless of the size and scope of your goals, whether they are big or small, short- or long-term. Our automatic savings solutions include an Investment Plan, a High Interest Savings Account (HISA), a Budget Plan and a Security Plan to meet various needs. To get started with one of these savings solutions, simply choose a plan and set the amount and frequency of your payments, depending on how much flexibility you have in your budget. This will enable you to save year-round at your own pace. Take the first step today, come and meet your advisor at one of our branches. A financial health assessment is the first step to better manage your personal finances. It helps paint a clear picture of your financial situation, define and prioritize your objectives, and suggest what you should do. Take your first step now and meet with your advisor.
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