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It's time to save the old fashioned way

VANCOUVER (NEWS1130) – It’s time to go back to old fashioned ways to saving money.  But that doesn’t mean burying money in the backyard.

Deputy chief economist of CIBC World Markets Benjamin Tal says real estate prices rose steadily over the last decade or so.  He says people were saving money by watching the value of their home rise.

He calls that passive saving and says that’s no way to ensure there’s money in the bank in the future.  “If the housing market is going to stabilize, and I think it’s going to stabilize, you will not have this passive savings any more.  In order to save, you have to go back to old fashioned active savings.” 

On average, Canadians are saving just over four per cent of their after-tax income and he predicts that will bump up to six per cent. His advice on how to squirrel away more? Easing off gambling, booze and shopping.