Page 10 - EQ Mag-2019
P. 10


                                                                                                                                Are you living with

                                                                                                                                the daily stress

                                                                                                                                of debt hanging

                                                                                                                                over your head?

                                                                                                                                  By Christian F. Cartwright

                                                                                                                                      forced savings plan may be the answer you’re           The Benefits of a Forced Savings Plan
                                                                                                                                      looking for to regain control of your finances. It’s
                                                                                                                               Aeasier than you think to start taking positive steps         The right advice can show you the places in your
                                                                                                                               towards getting out of debt.                                  monthly budget where you can afford to cut a few
                                                                                                                                                                                             corners and keep more of your hard-earned money in
                                                                                                                               What is a forced savings plan?                                the bank. Here are a few effective suggestions to get
                                                                                                                                                                                             you started on a savings plan.
                                                                                                                               In personal finance, a forced savings plan can also be
                                                                                                                               known as a commitment to invest. It is a series of            Automatic Online Savings – Set & Forget
                                                                                                                               automatic transfers that are in place to ensure your
                                                                                                                               financial plan and investment strategy continue to run         Consider having a fixed amount of your salary or
                                                                                                                               while all elements of your financial world are being           regular income automatically transferred into an
                                                                                                                               accounted for. A forced savings plan is applicable for all    online savings account. This should be a separate
                                                                                                                               people at all stages of their financial journey.               account from the one you use on a daily basis. By
                                                                                                                                                                                             automating the process, you don’t need to worry
                                                                                                                               As outlined in the example (pg. 11), a forced savings         about holding money aside for a savings plan. Even a
                                                                                                                               plan utilizes a forced savings account that is set up with    few dollars a week will add up over time!
                                                                                                a completely different financial institution to your regular
                                                                                                                               transaction and spending account.

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