People starting to think about the future and paying off debt.

[JLM]

Zero savings: A fifth of Canadians put nothing aside in 2013 | Financial Post


Not sure what this says more about - the state of the economy or peoples' wisdom. On a side issue I was checking out the cost of heart bypasses the other day, just to have some idea in case gov't funding for health care runs out. If you have to foot the cost of a triple bypass expect to pay up to $200 grand. (I would have thought maybe 50)

 

[Walter]

Zero savings: A fifth of Canadians put nothing aside in 2013 | Financial Post


Not sure what this says more about - the state of the economy or peoples' wisdom. On a side issue I was checking out the cost of heart bypasses the other day, just to have some idea in case gov't funding for health care runs out. If you have to foot the cost of a triple bypass expect to pay up to $200 grand. (I would have thought maybe 50)

Those who don't save are stupid.

 

[JLM]

Those who don't save are stupid.

Not all the time!

 

[petros]

Saving is useless. You have to invest.

 

[JLM]

Saving is useless. You have to invest.

Yes and no. Sometimes one can not be sure just how to invest, so while they are studying the situation, it's still smart to save. Especially now with tax free savings accounts, which can be converted to mutual funds.

 

[petros]

Learning isn't painful but stagnant savings are.

 

[Machjo]

Of course people need money before they can save it, though for many tht is an excuse.

 

[WLDB]

I'll start saving when I no longer have a debt to pay down. Putting money away rather than putting it on the debt just doesnt make any sense.

 

[Machjo]

I'll start saving when I no longer have a debt to pay down. Putting money away rather than putting it on the debt jut doesnt make any sense.

True. I forgot about that, being debt free and all myself.

 

[lone wolf]

Saving is near to impossible when you're pensioned off (gov't pension, that is) or in minimum wage employment - unless you skip out on the bills

 

[Walter]

Saving is useless. You have to invest.

Same thing.

 

[taxslave]

I'll start saving when I no longer have a debt to pay down. Putting money away rather than putting it on the debt just doesnt make any sense.

Ideally you wold do both. Paying down debt is good but one should have a few bucks socked away somewhere for emergencies.

 

[petros]

Same thing.

Not at all.

 

[karrie]

Yes and no. Sometimes one can not be sure just how to invest, so while they are studying the situation, it's still smart to save. Especially now with tax free savings accounts, which can be converted to mutual funds.

Diversification is key in my mind.

We have TFSA's, RRSP's, a plain savings account, stock investments, real estate investments.... you can't count on one thing. Plus, we invest in hubby's continued education to boost his worth at work.

I'll start saving when I no longer have a debt to pay down. Putting money away rather than putting it on the debt just doesnt make any sense.

Hubby's company matches us a higher percentage to put money away, than we pay on our loans. So, by paying our debt down slower (his truck lease, which he gets paid from work for, and our mortgage), we actually come out better. A lot of people don't know how to maximize those sorts of company programs.

 

[Kreskin]

I think the key to putting money away is use the golden rule: pay yourself first. It's amazing that so many people can find money to give to the telecoms, Apple, Bill Gates, Future Shop etc yet don't set aside anything for their future. Building equity is a marathon and best done systematically right off the top of any pay cheque.

 

[JLM]

I think the key to putting money away is use the golden rule: pay yourself first. It's amazing that so many people can find money to give to the telecoms, Apple, Bill Gates, Future Shop etc yet don't set aside anything for their future. Building equity is a marathon and best done systematically right off the top of any pay cheque.

That is absolutely right, and so easy to do. When I was working I would buy C.S.B.s and B.C.S.B. amounting to about 10-15% of my pay through payroll deductions and never missed the money, but it was sure nice a year later getting $3000 or $4000. The rate of return wasn't great but you knew what you were getting.

 

[WLDB]

Hubby's company matches us a higher percentage to put money away, than we pay on our loans. So, by paying our debt down slower (his truck lease, which he gets paid from work for, and our mortgage), we actually come out better. A lot of people don't know how to maximize those sorts of company programs.

Even with interest taken into account? If so that definitely sounds like a good way to do it.

 

[karrie]

I think the key to putting money away is use the golden rule: pay yourself first. It's amazing that so many people can find money to give to the telecoms, Apple, Bill Gates, Future Shop etc yet don't set aside anything for their future. Building equity is a marathon and best done systematically right off the top of any pay cheque.

We put away almost 40% of hubby's paycheque, and run our day to day budget on what's left.
Big purchases take more thought and planning that way, and are often just deemed not worth it in the end.

 

[WLDB]

I think the key to putting money away is use the golden rule: pay yourself first. It's amazing that so many people can find money to give to the telecoms, Apple, Bill Gates, Future Shop etc yet don't set aside anything for their future. Building equity is a marathon and best done systematically right off the top of any pay cheque.

Yeah thats what I did after high school for about four years before going to school. Even though I was just making a few dollars over minimum wage I was still able to put away enough to get through my first year of school debt free. If the recession hadnt hit I would have had more but thats life. S*it happens.

 

[karrie]

Even with interest taken into account? If so that definitely sounds like a good way to do it.

Yeah. Hubby's company matches us 15%. I'd never have a debt with interest that high. Our vehicle lease is around 3% I believe. We're really better off getting that 15%. Plus, we can get the money, and after the required time, pull it out and pay the debt down anyway.