I’ve put together a super simple savings flow chart. It’s the basic thought process to begin saving. I am a strong believer that this absolutely has to be automatic. If it’s not, I really hope you are incredibly disciplined. Which, by the way you’re not. Otherwise you’d be saving already.
Talk to your employer to enroll in their RRSP or Pension plan, whichever they offer. Some even do stock options. Whatever they have please enroll and ensure it comes off before your pay is deposited. The goal for your RRSP/Pension will be 15 to 30%. This may seem incredibly scary but you will just have to ease into it. Start off at 5%, go with that for a few months and up it to 10%. Rinse and repeat.
With people living longer than ever, us the millennials will need more money than ever to ensure we don’t outlive our savings. The goal here is financial freedom.
Automate your savings flow chart (Downloadable PDF)
As I’m sure you know, your credit is incredibly important to your financial health. Having your bills paid automatically will ensure no late payments. Additionally have money automatically transferred into your different savings accounts.
You should definitely have at least 6 months savings in an emergency fund. Aside from that put money aside for travel, or whatever it is you love to do. Finally transfer money into your TFSA (Tax Free Savings Account) for investing.
If you are unsure how to get started, you may reach out to me @thinkgrowrichs (twitter) or comment below. Additionally the best way would be to contact your banker!