Royal Bank of Canada (RBC) recently released a poll which revealed that more than half of Canadians are sticking to budget, however 40% have revealed that they are saving less than they were compared to last year. This is shocking news, especially when you consider the fact that in 2010 only 27% said that they were saving less than the previous year.
Canadians are able to keep to their budget by tracking their expenses by either writing them down, keeping track in their minds or using a spreadsheet.
Having a budget can help you keep track of your finances more than you can imagine. Creating a budget can help you manage your expenses and allow you to reach any goals you may have set for yourself.
Maria Contreras, product manager, Saving Accounts at RBC explained it. Contreras could not have given a better explained it better; savings plan is a lot like an exercise regiment; you can feel overwhelmed at first, but once you stick with it you will see the benefits and in the end it will be worthwhile.
What are the challenges associated with saving?
The poll revealed that 30% of Canadians find that being disciplined about saving is a challenge, which is no surprise. When you have been doing one thing for so many years it will take a lot of discipline in order to stick to a budget, which will likely have you spending a lot less money on items you do not need.
Other challenges that were found were that 28% find it difficult to set up a program to pay yourself first, while another 24% found that it difficult to determine how much they can afford to save each month.
How can I determine how much I can save?
In the end, to determine what you can save each month does require you to sit down and examine your monthly finances. Write down what it necessary and what isn’t. By figuring out what you need each month and how much money you have left over you can easily figure our how much you can save each month.
To stick with spending that amount each month will require you to budget your money accordingly and ensure you do not make any impulsive buys, which only lowers your saving amount.
For people banking with RBC, it can be pretty easy to figure out your expenses and come up with a comprehensive budget. RBC released myFinanceTracker, a financial management tool which can help customers track and manage their money easily. If you haven’t taken a look at it already, you should definitely do so because you will be able to figure out your spending a lot easier than having to manually go over it yourself.
Saving money can be difficult at first, but once you get in the habit of it, it will become second nature to you.
How well are you saving this year?