(NC) - When it comes to saving money, we often focus on immediate needs. While saving is an essential step to a stable financial future, we often forget to ask ourselves an important question: What exactly am I saving for and how much will I need? Whether it's for a new home, paying off debt, or something more long-term such as securing your retirement, being able to clearly identify your end goal (and envision what it will look like) can make it easier to put a plan in place and work towards reaching it.
A recent study conducted by BMO Financial Group found that half of Canadians don't have a clear understanding of their short and long-term financial goals. This can make it more difficult for people to save for things they want in life.
"Having clear goals can help motivate us to save money," says Tina Di Vito, Head, BMO Retirement Institute. "For example, when it comes to saving for retirement, have a picture of what you want your retirement lifestyle to look like, then work with a professional to develop a financial plan and start saving to realize your retirement goals."
BMO has some new tools to help individuals conceptualize and prepare for their retirement. For example, the BMO Retirement Positioning System is an iPhone application that is like a GPS for your retirement. It maps out how much savings you will need for your retirement and shows you how close you are to your goal based on your current saving patterns. If you don't have an iPhone, try out BMO's Retirement Savings Outlook online to see how much money you will need for the retirement you desire. For more information on the tools above, visit www.bmo.com/smartinvesting or speak with a financial professional at your local BMO branch.
