Don’t Delay Your Savings

When is the right time to start saving?

Whether you are a student surviving college or married with your first home, it is easy to postpone saving. It can be surprising to learn exactly how much delaying your savings may be costing you. This calculator can help you build your saving strategy quickly. By adding a few details about the payments you can make, you can quickly estimate the potential value of any savings plan. It will also show you what you can gain from saving sooner.
Why are savings important?
In life, there may be many moments that are financially challenging. Some of these moments may be expected, while others may come as a complete surprise. Being prepared for these periods in life requires a good savings plan, but coming up with the right system is hard. Its okay if you can’t start saving today. An important first step is to start creating an approach that works for you.
There are no absolute rules when it comes to saving. The best approach is one that you can stick to. It’s also better to start sooner than later. The right savings plan can provide you with peace of mind and freedom to navigate life’s next moments with ease.
With the right savings you can take on your first car or home purchase. You can prepare for family weddings or just travel with friends. Your savings might even dictate your retirement. Whatever your goal, make a plan that will help you reach it.
How can you increase your savings?
The most important aspect of building your savings is creating a plan that fits your real life. There are no official rules, but there are many great strategies that can help you along the way:
  • Visualization: The most important aspect of a successful savings plan is to understand what you are truly saving for. Whether it is a new home, prestigious college enrolment, or a comfortable retirement. Being able to visualize what you want will give you a clear picture of your long-term goal. The more clear the picture, the easier it will be to make daily decisions to promote that success.
  • Deliberate Action: Once you know what you want, it’s time to start setting aside the money you need for that goal. This is where saving becomes involved. Moving your funds into a separate account and limiting your spending on things that bring you instant satisfaction is most difficult in the beginning. It is a lot of work that requires you to take an aggressive stance, with minimal immediate reward. But by limiting yourself now, you are guaranteeing yourself a much bigger reward in the future. You just have to push through the first few months.
  • Growth: After the initial three to six months, building your savings will become much easier. it will become second nature! That’s when you move into the phase of watching your savings grow. Through the power of compound interest, you can watch your savings multiply each year. Your goal feel more tangible than ever. At some point, you may even wonder why you waited to start saving in the first place.
  • Milestones: It can also get tiring when you are constantly focused on saving. It takes a high level of persistence. Set financial benchmarks and accompanying rewards for yourself when you meet them. Once you have hit a financial target treat yourself to something nice. Splurge on a nice weekend getaway, a fancy dinner, or that item you have had your eye on recently. You deserve it.
  • Be flexible: Some years or periods in your life you may not save up as much as you’d like, but don’t get discouraged. You are better off to adjust your rate of saving to your financial situation. If the kids are off to university or an emergency places a damper on your finances, reduce your savings. Once things settle you can use every opportunity to recover your payments. When you pay off your mortgage or when you get a raise, out that money to your savings. Chances are, you’ll still come out ahead with less grief.
What is this calculator for?
The delayed savings plan calculator is very straightforward to use. It is designed to illustrate your potential gains. You just have to provide when you can start your savings and how much to put aside. Then the system will generate a report of how much you can accumulate and how much more you can save if you start today.
This service offers you the chance to assess different strategies and timings. This way you can structure your savings in a way that makes the most sense. You can decide if it is worth waiting or if you should take a more proactive approach, after learning what you can achieve.
How to use the calculator
There are two parts to the calculator: an information intake and integrated results. You will need to add information about your potential savings for accurate results to be generated. Let’s go through each step together, beginning with your savings plan.
Step 1: On the first line of the calculator you should identify when you would like to start your savings. Here you can decide how many years you would like to wait before putting your plan into action. Then, add the starting balance of your savings account to the second line.
Step 2: On the third line of the calculator you should add the amount of time you have to grow your savings. Then add the annual rate of return on your savings account on the following line. Tax-free savings accounts have a nominal return of 0.25%, while investments diversified among stocks and bonda can provide returns up to 8%.
Step 3: You should identify the payments you can make to your savings account. Then define how often you will be able to make the payments.
Step 4: Proceed to view your savings plan results.
How to interpret your results
The system will generate reports in the form of smart prompts, charts, and tables.
savings plan
Below the inputs, there is a prompt that will notify you how much it may cost to delay your savings.
Underneath that are your two integrated reports. The first report is a savings plan chart, which shows the growth of your savings accounts over a number of years. You may see your savings if you start now in blue, or your delayed savings in green. Thus should give you a clear idea of your savings account potential.
delayed savings plan
The second tab allows you to see a breakdown of your saving balance by year if you start saving now, or if you choose to postpone. This report will enable you to compare different the different savings approaches easily. It may show you if you will need to start saving sooner, or later, to meet your milestones.
Without this essential information, you may never know your savings potential, or exactly how easy it may be to set up a financially secure future. Remember to bookmark this page or save it to the home screen of your smart phone or tablet to have access this great tool as your finances change. By using the share feature, you may also promote us on social media to help others build a successful saving strategy too!