After 2 1/2 years of a pandemic what has happened to our urge to spend? For some, spending on-line became a gateway to debt but for others your savings grew. Some current financial reports indicate "strong household balances" are a reality. If this is you now what? Instead of making purchase that will leave you feeling empty, dissatisfied, or guilty try something new: implement a Savings Program.
Create a VISION BOARD with pictures or words of your goals and dreams. Start with your Emergency Fund and BigBills Accounts (annual random expenses i.e. house and car insurance, property taxes, Christmas, etc.)
Research and estimate your cost to achieve the amount for each. I say "your cost" because how you travel, the vehicle you want, your own business, the renovations, the new chair, etc. will be different than someone else. Your Emergency Fund need and BigBills will also be very different.
Consider when you want to achieve the goal. Tip: set goals at 1 year, 2 - 3 years, 5years & 10 years.
Calculate a monthly savings amount by dividing the amount by the months it will take to get to your deadline. Can you achieve this monthly amount? If you don't feel comfortable with the amount then modify the cost of the goal, push the deadline out, or review your current spending to reduce costs. Brainstorm other methods such as buying used, bartering, etc.
Start a savings account with the specific goal. You can use savings accounts for short term and your TFSA with different assets linked to longer term goals.
Set up an automatic transfer from your paycheck deposit account to the new account for this goal. You may have a few goals so do this for each one (use accounts with no fees). If you already have a nest egg divide it up to jump start your goal accounts.
Evaluate after 3 months to ensure you have enough to live without dipping into these accounts. It could be easier than your think to save!
When you need the cash for your goal you could have most or all of it.
This feels like freedom! No debt, no compromise.