A recent article entitled "Canadians tempt Murphy's Law: 38% don't have a savings fund for life's surprises" on Canada Newswire is a good reminder that we all need to have a look at our financial portfolios to ensure we are postured well for the future.
While we as mortgage brokers and associates don't provide financial banking advice, we do provide consultation on one of life's biggest investments: mortgages. We listen to our clients to find out the goals they'd like to achieve: Whether it's to consolidate debt, increase cash flow or realize the dream of owning investment properties, we are here to help.
TORONTO, March 26, 2012 /CNW/ - Canadians are playing the odds: 38% of Canadians don't have any money set aside in case they lose their job, have to cover significant medical bills, out-of the-blue home repairs or other unexpected expenses.
According the 2012 TD Canada Trust Report on Savings, 53% of Canadians admit they have been in a situation where they needed to rely on cash savings to navigate an unexpected life event, yet only 26% of this group had a fund set up. Of those who didn't have a fund, 49% had to depend on friends or family, 36% used their credit cards, 35% relied on a loan or line of credit, 16% dipped into their savings account and 14% dipped into their RSP.
While Canadians understand the importance of saving for life's surprises (only 3% don't think a savings fund for unexpected expenses is necessary), many cite a variety of reasons for not having one: they're "broke" (56%), paying off debts from credit cards or lines of credit (46%), servicing their mortgage (14%), or saving for retirement or their child's education (7%).
The good news is that one-third of Canadians have one to three months of living expenses saved for unexpected expenses, 13% of Canadians have four to six months saved, and 16% have more than six months of living expenses in the bank.
