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From Piggybank to Paris – An Easier Way to Build Your Savings Without Breaking Your Budget

Posted by Claire | Wednesday October 12, 201111 comments
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When I was very young, a well-intentioned uncle opened up a bank account in my name and deposited $5 for my birthday.  So instead of a cotton candy-coloured My Little Pony that would have earned me serious schoolyard fame, I got a somber-looking bankbook tucked in a shiny plastic sleeve. 

Despite my initial lack of enthusiasm, it kicked off a great habit of squirreling away part of my weekly allowance on a regular basis, which to my childish astonishment grew rather quickly… until I discovered Boys and Makeup and Going To The Mall.

I continued to save sporadically over the years and cut back on my expenses where I could, but a proper plan was lacking.  My "rainy day fund" became a large jar that I would drop the day’s loose change into, leftover foreign currency, and random $5 bills found in coat pockets from last winter.  Anything beyond that felt like a sacrifice to my budget.

The truth is, setting aside savings doesn’t have to be a sacrifice. In the same way I was socking away my nickels and dimes, I eventually realized that setting up a small automatic deposit into a dedicated higher interest savings account would not affect my budgeting at all, but would be immensely practical for emergency savings, major planned expenses, or funds for Christmas gifts.  In my case, it was enough for a deposit on the first vehicle the mister and I bought together.

If your budget is a little too strapped to set aside substantial sums, consider beginning with a modest, easy-to-stick-with program using an RBC High Interest eSavings® account.  For example:

1) Start with $100 and add $30 every month (that’s $1 a day) to save over $800 in 2 years thanks to the loose change in your pocket.  That’s enough for a quick getaway to Paris, France!

2) Start with $50 and add $25 every week for a neat little nest egg of over $1,300 in 1 year, just by brown-bagging your lunch a few times a week.  A new walk-in closet with extra space for shoes? Check!

This year, I’m saving for a family ski vacation.  What are you saving for?
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11 Comments

on October 12, 2011  takoda  28,648 said:

Great advice, thanks for sharing Claire.

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