Business & Investment

2022 is the worst time to be a savior.What to do with your money instead

If “saving money” was your New Year’s determination, give you more power. It doesn’t prevent anyone from trying to save a little extra, especially if you’re building emergency funds or saving for a down payment.

However, there is one big caveat to saving money in 2022. If you have money in your savings account, don’t expect that money to increase.

For one thing, the low interest rates on savings accounts are growing money at a snail pace. The Bank of Canada is expected to raise its prime rate soon, but it may take some time for banks to offer high-yielding savings accounts that deserve their name.

And then there is inflation. As long as inflation makes life more expensive, it has the unintended effect of devaluing your savings. This is especially true for static down payments, which become less effective as home prices rise.

So what can a saver do? If you are looking to increase your savings, here are four places where you can put your money in 2022.

GIC ladder

A Guaranteed Investment Certificate (GIC) Helps you get higher interest rates than your regular savings account. Of course, there are pitfalls. You need to lock in money for a period of time (called a “period”).

The period may last for several months. Or it can last for several years. In general, the longer the GIC period, the higher the interest rate. But if you lock up your money for too long, don’t expect to withdraw without complications. Unless you can convince your GIC issuer that your withdrawal is an absolute emergency, you will probably lose the interest you earn.

Most people can’t afford to keep their savings out for years. Ladder Convenient. The “ladder” strategy retrieves multiple GICs, each with a different term. For example, you can put the same amount of savings in a 6-month GIC, a 1-year GIC, a 1.5-year GIC, and a 2-year GIC.

After 6 months, the 6 month GIC will reach maturity and you will have access to your savings. At that point, all GICs are close to 6 months in maturity. So technically there are 6 months GIC, 1 year GIC, and 1.5 years GIC. If you don’t need money at this time, you can use your 6 months GIC savings to buy another 2 years of GIC. In this way, every 6 months you buy a new 2 year GIC and your money never stops growing.

With multiple GICs, you can take advantage of higher rates on long-term GICs while keeping your savings from locking for longer than you can afford.

This can be a lucrative strategy. However, in this lending environment, interest rates may be too low to actually make money. Still, I put this strategy in my head, and it may happen as soon as interest rates rise. Practice it.

Dividend stock

A Dividend stock You pay a certain percentage just to own the company’s stock.Yes this is an addition For price fluctuations of the stock itself.

The best dividend stocks will get big dividends while valuing their value. Find a company that is well-established, has a long history of dividends, and has a fairly high dividend rate. now, Good dividend yield It will be about 3.75% to 5%.


As you know, real estate is hot right now. In fact, Canadian investors are so hot that they buy homes, turn them over, turn them into rental properties, and hang above potential homebuyers in the form of blind auctions.

Of course, not everyone has time to nail and start over in the bathroom. You also don’t have the time to struggle with the home buying process to get a valuable investment.

For those who cannot sidegive real estate, you can buy stocks of real estate investment trusts (REITs). REITs are basically companies that manage a large number of real estate. Like ETFs and investment trusts, you pool your money with other investors and earn capital gains when REIT companies are successful.

2022 is the worst time to be a savior.What to do with your money instead 2022 is the worst time to be a savior.What to do with your money instead

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