It can be difficult to prioritize investing after you consider that the cost of everything seems to be going up. But investing doesn't have to eat up a huge chunk of your budget. For most of us, it's considerably easier to regularly come up with smaller investment amounts than it is to make a large, lump-sum contribution. The key here is consistency.
Because of the rising cost of living, many Canadians are still embracing the budgeting habits they acquired during the pandemic. While you could throw your savings in an account that doesn't do much, consider putting your money to work. By investing your savings, you can accelerate the rate at which you achieve your financial goals.
Whatever goal you decide to save for, the easiest way to get started is by setting up a regular investment plan. Like paying your household bills, contributing to a regular investment plan lets you set up and automate money that goes towards your savings or investments on a regular basis. They are a convenient way to schedule when and how often you make contributions from your bank account to your investment accounts.
What is so great about regular investment plans?
What could be simpler than putting your investment contributions on autopilot?
You can pay yourself first
By taking a portion of your income and putting it aside before your regular expenses — or Uber charges — eat it up, your savings will quickly grow over time.
You can choose when and how often to make contributions. You can also increase or decrease the amount or frequency of the contributions to suit your circumstances — or stop payments altogether.
Takes advantage of dollar-cost averaging
Dollar-cost averaging involves investing a fixed amount of money in the same fund or stock at regular intervals over a long period of time, regardless of the market fluctuations of your investment. This strategy takes the guesswork out of when to buy, by helping you catch the high and low points and smoothing your investment returns over the long term.
Compounding is when your initial saved amount earns interest — thereby increasing the pool of savings — then earns interest on top of the new larger pool, and so on. Essentially, you’re earning interest on your interest and growing your money faster.
Let’s talk about ways to accelerate your savings
Put your money to work with the so-called magic of compounding, automatic savings deposits and a long-term investment plan.
Let’s talk numbers
Consider these everyday savings opportunities and the positive impact they could have on your financial future if invested in a regular investment plan, assuming a 5% annual rate of return.
Are you ready to put it into practice?
Find out how your money can grow over time through regular investments with our digital calculator.
I’m convinced! How do I get started?
With a CIBC Regular Investment Plan, you can get started with as little as $25 a month. Speak to your advisor about setting up a regular investment plan.