Those that know me would probably agree that I get on different kicks...I get reading kicks, drawing kicks, recently painting...but I now have a new one!
Saving.
I was watching Oprah today, I'm trying not be fearful or that person who believes everything on the tube, but this one is tough for me. I fear poverty. Oprah sent Lisa Ling out to suburban homes that were foreclosed on, and interviewed the families that this tough recession has affected. I know that there is a big difference between the United States and Canada, but face it people, while we're not that bad, YET, but we're not far behind. Just tonight I was watching the news, and whole companies are shutting down in the span of a day right here. Just today a prominent forestry company (Catalyst) has shut down all operations indefinitely on the Island, stating it could be even years until they will be operational again. 700 people were laid off. This is in our own backyard.
So I don't have much to spare after the daily grind of bills and what not, but I'm not unemployed yet, and I fully intend to take every opportunity I can to brace myself for the demise of my job if the time comes.
I did a little digging around and I've found that ING Direct (old guy in the orange commercials) is really good...not only do they provide a high interest (as high as they can possibly provide during economic downturn) savings account options, but there are no taxes being deducted either upon investing or taking out your money. Currently their interest rate is at 2.3%, but take it and run. I'm no financial guru, but this is the best I've come across.
It's super easy, you can open an account online in 2.5 and from there, you can invest and if you want to take your money OUT, simply make a transfer and it takes 1-2 days (your bank may hold it from there for about 5 days, but the good news is that it's still earning interest during transition).
Furthermore, ING is governed by the CDIC, which means that your money is insured under Canadian law for up to $100,000. So you're covered if the shit hits the fan at ING. PS...if you plan on investing more than $100,000, simply open multiple accounts so you're covered. DIVERSIFY DIVERSIFY! I always heard that and didn't fully comprehend what that meant. I do now.
So...my big plan is to save some money in ING, and when I have a substantial amount, I'll take it out and invest in a GIC for a shorter term. So for example I'll put my money in a 6 month GIC , it'll be locked for 6 months, but earning high interest at guaranteed returns.
Now my task is putting my fancy ideologies into action! I know, I can talk a lot of game, but doing is another thing. I'm dedicated to this one though, I don't think I can afford not to be dedicated during these delicate times.
I mentioned above that I'm afraid of poverty, and I realized today that if I keep going on the path that I am, I will have nothing to show for my work. I'm 22 as of two days ago, and by the time I'm thirty, I want, no, WILL have tangible evidence of my accomplishments. I don't need a rock on my hand or kids in my car, but I will have a house/property in my name and savings to boot.
Until next time!
Dez
Labels: economic, ING, layoffs, money, Oprah, recession, savings