Get the information you need when saving for your dream purchase.
When making a major purchase, it's important to know where that money is coming from before signing on the dotted line. If your goal is to buy a car or plan a trip, you'll most likely be looking at a shorter timeline. With that in mind, it's important to look to low-risk investment options that offer steady returns.
For big purchases, like a car or trip, the timeline is usually shorter. It's important to establish a time frame to save for your big purchase so you can figure out how much you need to save on a monthly basis.
With shorter timelines, lower risk investments will help make sure you've saved enough and that the principal is secure.
Lower risk investment options can bring you strong, steady returns putting you on the right path toward your goal.
Borrowing money to make a large purchase definitely gives you more time to enjoy it, since you'll be buying it sooner. But the interest on your loan will increase the overall cost of your purchase. So you would have it sooner, but pay for it longer.
A savings account or Guaranteed Investment Certificate (GIC) are perfect for short-term goals. You have easy access to your money and they are low risk. Investments such as mutual funds are ideal for saving for longer-term goals, like retirement or a child's education. There's more risk but there's also potential for greater returns.