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BMO Bank of Montreal

February 02, 2012 09:00 ET

BMO Retirement Tips of the Day: Using Your Common Sense and Planning Ahead Will Help Secure Your Retirement Nest Egg

TORONTO, ONTARIO--(Marketwire - Feb. 2, 2012) - As the February 29th deadline approaches to make a contribution to a Registered Retirement Savings Plan (RRSP) and as part of its ongoing commitment to improving financial literacy, BMO Financial Group will be providing daily retirement tips during the month of February from BMO Retirement Institute Head Tina Di Vito's new book 52 Ways To Wreck Your Retirement…And How To Rescue It.

Tip Number Three:

Use common sense

Many Canadians understand that good money management includes saving, not over-spending and investing carefully. The problem is we often don't exercise common sense with our money, which can lead to spending too much, accumulating debt and making bad investment choices. Some tried and true tips for using common sense include:

  • Don't spend more than you earn. Try to save for purchases instead of borrowing.
  • Be informed before making a financial decision; if it sounds too good to be true, it probably is.
  • Pay yourself first by setting up an automatic contribution plan.

Tip Number Four:

Save for tomorrow rather than only living for today

When we live for today, we value things we can have right now more than those we will enjoy later on. As a result we often don't prioritize saving for retirement.

While retirement seems far away it should be a top priority. Establishing monthly savings goals will help get you on the right track, as will setting up automatic withdrawals from your paycheque into an RRSP. Start with small contributions - but not too small - especially if you want to give your savings a boost.

For more information on retirement: www.bmo.com/retirement.

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