CIBC says we've become "rusty" at saving
Most Canadians say they need to save more but while their heads may know they should their heart demands the pleasure that money can bring them now.
The disconnect between the right thing to do to ensure stable finances and the desire for instant gratification is highlighted in a new poll by CIBC which reveals that 85% of Canadians agree that they need to save more money.
Despite that acknowledgment, 64% are not making saving a priority even though most say they could get by with less money to spend. They don’t though because ‘extra money’ is for ‘pleasure or enjoyment’.
“This is the time of year when many of us make room in our budget for spending on gifts, Black Friday and Cyber Monday sales and holiday parties, but don't think twice about how little we've saved until regret kicks in with our New Year's resolutions," says David Nicholson, Vice-President, Imperial Service, CIBC.
So how much could Canadians save?
The survey reveals that Canadians have an overage $360 a month that they could cut from their spending before feeling ‘the pinch’. There is an additional $2,280 of ‘extra money’ (outside their regular income) received by 62% of respondents.
Despite that, more than half said they would need to borrow from friends or family if hit with an unexpected $1000 expense.
Two thirds of respondents said they don’t have a detailed or regular savings plan and 26% never or ‘don’t really’ save.
When extra money is available, most (66%) use it to buy themselves gifts, pay down debt or use it for everyday expenses. Just 2 in 5 save it for retirement or for emergency funds.
"People think it's too hard to save, but the truth is that we've just become rusty at saving. It's about shifting your mindset, and getting into the habit of saving regularly," says Mr. Nicholson. "The hard part is exercising self-control over your spending so that you can increase the amount you save over time."
The disconnect between the right thing to do to ensure stable finances and the desire for instant gratification is highlighted in a new poll by CIBC which reveals that 85% of Canadians agree that they need to save more money.
Despite that acknowledgment, 64% are not making saving a priority even though most say they could get by with less money to spend. They don’t though because ‘extra money’ is for ‘pleasure or enjoyment’.
“This is the time of year when many of us make room in our budget for spending on gifts, Black Friday and Cyber Monday sales and holiday parties, but don't think twice about how little we've saved until regret kicks in with our New Year's resolutions," says David Nicholson, Vice-President, Imperial Service, CIBC.
So how much could Canadians save?
The survey reveals that Canadians have an overage $360 a month that they could cut from their spending before feeling ‘the pinch’. There is an additional $2,280 of ‘extra money’ (outside their regular income) received by 62% of respondents.
Despite that, more than half said they would need to borrow from friends or family if hit with an unexpected $1000 expense.
Two thirds of respondents said they don’t have a detailed or regular savings plan and 26% never or ‘don’t really’ save.
When extra money is available, most (66%) use it to buy themselves gifts, pay down debt or use it for everyday expenses. Just 2 in 5 save it for retirement or for emergency funds.
"People think it's too hard to save, but the truth is that we've just become rusty at saving. It's about shifting your mindset, and getting into the habit of saving regularly," says Mr. Nicholson. "The hard part is exercising self-control over your spending so that you can increase the amount you save over time."
