It may not be as hard as you think to set a plan … and stick to it
We’ve all been there. We create a budget that includes all of our monthly expenses, allocate a portion for a vacation or other savings goal, and include a certain amount for our longer-term savings needs.
And then reality sets in. Our after-tax income barely covers our monthly expenses and there’s hardly any money left for the pleasures in life. There are, however, a few simple actions that can go a long way towards balancing the lifestyle we want with our need to save for a comfortable future.
Putting it all together in a meaningful way allows you to stay on track once you set the plan. For example, think about dividing up your take-home pay and allocating a percentage of a dollar earned towards each budget category. Again, consider something realistic – 60% of each dollar going to living expenses and debt repayment, 15% to a savings and emergency fund, 10% to retirement savings, and 15% to discretionary spending. Once you find the right balance, your budget can evolve accordingly.
It’s important to note that everyone’s life and financial situation is different, so you’ll want to create a sound and reasonable saving strategy that meets your needs.
This information has been provided by RBC Global Asset Management Inc. (RBC GAM) and is for informational purposes only. It is not intended to provide legal, accounting, tax, investment, financial or other advice and such information should not be relied upon for providing such advice. The information contained herein is from sources believed to be reliable, but accuracy cannot be guaranteed. Please consult your advisor and read the prospectus of Fund Facts document before investing. There may be commissions, trailing commissions, management fees and expenses associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. RBC Funds, BlueBay Funds and PH&N Funds are offered by RBC Global Asset Management Inc. and distributed through authorized dealers.
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Time is on your side
when you start saving
for retirement early.