Does This Make Any Sense

iVillage Member
Registered: 07-14-2008
Does This Make Any Sense
3
Fri, 01-15-2010 - 7:23pm
So, I only have a few payments left and my car will be completely paid off. So, it will be time for me to start saving. It is my plan to save every month the amount of my car loan and my insurance savings (going from leasing to owning, but owing no money). I know that I don't want to just put the money in an account as it will be too tempting to take it out for something and regret it later. My thought is to save $1000 in a high interest account. That way I will have the money easily accessible for emergencies and car repairs if needed. Then once I have saved $1000 I am thinking of purchasing GIC's. I know right now the interest rates aren't that great. But, if I put them in they are somewhat locked in so it won't be tempting just to spend the money. On the other hand, if I need the money I will have access to it and I won't loose any of my money, just potential interest. At this time I am not sure what that money will go towards, perhaps savings, a new car down the road, pay off my mortgage. But, I am not wanting to make a decision right now.
Any thoughts on this?





iVillage Member
Registered: 04-10-2003
Fri, 01-15-2010 - 8:08pm

I think thats a great idea (saving the amount that you are paying on the car loan!) That way its really painless savings!


ING Direct is great because they have short term GICs (90 days, 180 days, 270 days). Once you have your $1000 in savings you could start with 90 day GICs and see how it goes and eventually turn them over into longer and longer until you get used to it.


Congrats on paying off the car! I have made one whole payment on mine!!!


Bex -


"Yesterday is history, tomorrow is a mystery, today is a gift -thats why its called the present."


Bex -

iVillage Member
Registered: 10-01-2009
Sat, 01-16-2010 - 7:41pm

Hi Silly...


I agree with the first 1000 but putting the rest into GICs is not the best plan right now with interest rates so low...


Open up a TFSA and try a good balanced index fund or ETF, this

iVillage Member
Registered: 06-25-2006
Sat, 01-16-2010 - 11:46pm

It sounds like you have a great plan! Whether you go with a GIC or a TSA I think you will be great - you will be saving and tucking away money for your next car or savings or something else.

Smart thinking! Good luck!