| Pay YOURSELF First! |
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Pay YOURSELF First! Often, we have the best intentions to save, but then don't know how the money disappears from our wallets. By using a pre-authorized contribution plan, you intentionally pay yourself like you'd pay your mortgage or any other bills. Instead of saving what is left over at the end of the month, you prioritize your savings goals over your other expenses.
Pre-Authorized Contribution Plans A pre-authorized contribution (PAC) plan is an easy way for you to invest a specific amount of money at regular intervals. Once the plan is set up, your chequing or savings account is automatically debited for the amount of the contribution, and used to purchase various investments.
Compound interest, put simply, is interest paid on interest. Compound interest, a vital component of regular investing, can help you achieve your financial goals, such as becoming a millionaire, retiring comfortably or being financially independent. TIP: A simple way to know the time it takes for money to double is to use the rule of 72. For example, if you wanted to know how many years it would take for an investment earning 6% to double, simply divide 72 by 6, and the answer would be approximately 12 years. The reverse is also true. If you wanted to know what interest rate you would have to earn to double your money in 12 years, then divide 72 by 12, and the answer is about 6%.
.................Start early and get compounding working for you.
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