1 – Easily accessible
When a major unforeseen comes to shake up the family budget, the financial obligations, they do not wait. You have to keep paying the rent or the mortgage, putting food on the table, paying off debts, filling the car with gas, etc. That is why the ideal safety cushion is made up of easily accessible cash. The funds must be available when they are really needed.
A diversified savings portfolio should therefore contain redeemable or directly accessible investments, in addition to products intended for future projects such as retirement savings. The COVID-19 pandemic has made the population aware of the importance of having any savings and being able to access them when they want. To help Quebeckers ensure their financial security, Québec Investments Savings Offers them the Flexi-Plus Savings, a high-interest savings account where the amounts are repayable at any time, without any penalty.
2 – No charge
Saving is not always easy when you already have to juggle daily expenses. And when we manage to put money aside, it can be difficult to let our funding cushion crumble into management or administrative costs. When we take a closer look at our investment statements, we are sometimes surprised to realize how these fees can accumulate and gradually eat away at our emergency fund. Choosing savings products without any management or administration fees, like those of Épargne Placements Québec, gives our capital a chance to grow.
3 – Reliable and secure
When we make the effort to put money aside to deal with the unexpected, we also want it to stay safe. A good emergency fund should be made up of safe investments. Regardless of our risk tolerance or investment profile, it is therefore important to have a safe portion in our investment portfolio.
Good to know: all amounts invested with Épargne Placements Québec are fully guaranteed by the Government of Québec. Concretely, this means that the principal and the interests which you accumulate are protected, without limit of amount. They are therefore reimbursable at their full value. Perfect for a financial cushion!
And how much should we save in our cushion?
As a general rule, to cope with urgent and unforeseen situations, experts recommend setting aside enough money to cover our fixed expenses for 3 to 6 months. We must therefore calculate how much our current financial obligations are each month. It may seem like a lot at first, but it’s never too late to start putting money aside so you can sleep with peace of mind.
And with the Épargne Placements Québec Periodic Savings Plan, you can set aside money, starting at $ 10, at the frequency of your choice (weekly, bi-weekly, monthly). Saving without thinking about it is easier than you think!
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