Pay yourself first with a pre-authorized contribution plan

#Managing your money

Treat saving like a re-occurring payment to reach investment goals

You know it’s important to set money aside to reach your investment goals. However, with so many spending opportunities vying for your attention, it can be tough to fit savings into your financial security plan.

Paying yourself first means saving a set amount first and only spending what is left over - rather than the other way around.
Opens a new website in a new window

“Paying yourself first” means saving a set amount first and only spending what’s left over – rather than the other way around. It means making your financial goals a priority by treating saving like any other bill or re-occurring payment.

That’s where a pre-authorized contribution (PAC) plan can help. It allows you to transfer funds automatically from your bank account to your plan.

Instead of saving to invest in one lump sum, PACs spread your saving over regular intervals, helping you balance the effects of up and down market cycles.

Making small, regular contributions can go a long way to helping you achieve your financial goals. For example, if you invest $100 a week for your retirement, you’ll have accumulated $197,000 after 20 years – assuming a fixed interest rate of six per cent.1

Pre-authorized contribution plans make it easier to save for your future. Your financial security advisor can work with you to determine which PAC options and schedules work best for you.

 

1This example is for illustrative purposes only. Situations will vary according to specific circumstances.