Set up a savings strategy that works for you and your family
Prior to the recent global economic crisis, easy access to credit had many homeowners (particularly in the United States) following the "buy-now-pay-later" philosophy, and purchasing more than they could really afford.
While Canadians were less affected than our U.S. neighbours, the risk of overleveraging has certainly been made clear. Many people are rediscovering fundamental saving guidelines and strategies such as having money set aside for a rainy day, and saving up for a major purchase (instead of buying now on credit).
An overall saving strategy plays a key role in seeing you through economic downturns and helping you stay on track to your long-term goals. What constitutes an effective saving strategy? While the specific approach will be different for every investor, successful saving consists of five essential components.