A recent study conducted by CIBC has discovered that retirees, whether due to fixed-income requirements or simple diligence, are twice as likely to report sticking to a budget than the average Canadian. Over half of retirees claim to have some sort of monthly budget, compared to only a quarter of the general population.
As everyone knowsâ€"â€"whether they adhere to it or notâ€"â€"budgeting is one of the most important things one can do to establish some sort of financial stability, savings plan, and long-term goals, having of course both the effect of moderation and impulse control as well as the actual savings one can rely upon in times of need, or later in life.
CIBC’s findings were interesting, though not likely surprising; retirees dealing with fixed incomes and other concerns would likely stick to a monthly budget out of necessity, as they would have no way of spending more than they were issued each month. On the other hand, it is, of course, altogether possible that these retirees are coddling their bank accounts to make sure the money is spent responsibly. Perhaps due to life experience, perhaps the experience in particular of growing up in a more difficult period of time, the majority of retirees have learned the financial lessons that others would do well to duplicate.
The news is all the more important as the study was issued by CIBC during the financial crisis of the early century, and any sobering reminder for clients to pay more attention to banking concerns is likely to be helpful. Without some sort of savings plan, those living during this or future recessions are likely to experience far greater financial stress than their retired compatriots, whose money recommendations may, unfortunately, fall on deaf ears, despite the retirees more likely being the ones who should be hard of hearing.
As much as people know they should save, a number of factors do play a part in hampering their financial plans, whether it is due to temporary expenses, low income levels, high income levels, unexpected problems and so on; but of course, these are rarely decent excuses for saving money. Regardless of wealth, status, job situation or other concerns, saving is an important strategy for getting ahead.
One easy way of saving is simply to open a savings account, and set up an automatic deposit, so money is continually funneled into the account, where a check or debit card cannot touch it. If it’s out of sight, it’s likely out of mind as well.
Dieting techniques can also be helpful; studies found that those who took photographs of every meal were far more likely to succeed in their goals than others. By the same token, recording every purchase and adding up the numbers at the end of each week is a great way to see how much money is actually being spent, and where the cuts can occur.
Other strategies like dining in, renting movies instead of visiting the theater, shopping for used clothing and other products, and other methods are all great ways to save, recording this spending as well. Financial lessons are the type that are only learned perhaps slightly too late, and the data presented by CIBC shows that we should all take a lesson from our grandparents and hang on to our money a little better. Our bank accounts will thank usâ€"â€"with interest.
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Check out some information regarding CIBC Online Banking for those who wish to take their accounts online, where clients can take advantage of the services available from CIBC Online and enjoy the 21st century.
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