How to start small for something BIG...
We lead financial wellness sessions all over the Province. And when we do that, we see people running into a constant problem with saving: people are usually trying to save what they have left over at the end of the month. And what’s left over at the end of the month? Nothing.
Instead, we want to encourage you to “Pay Yourself First”. Before you buy that phone, before you go shopping or go out to eat – pay yourself. Build up a fund you can access any time. And put it in a place where it will grow on its own: your Group Tax-Free Savings Account (TFSA). Unlike your RRSP, the TFSA isn’t really built for retirement – it’s any time money. It’s still accessible if you need it, but it’s not instantaneous like a savings account – plus it earns compound interest.
To Pay Yourself First, it’s really simple: choose an amount that you can live without every month. Let’s say it’s $100 / month. With Pre-Authorized Contributions you can have this automatically come out of your account every month, whether you remember it or not. If you’ve never contributed to a TFSA, you have $63,500 that Revenue Canada will let you contribute this year – and unlike an RRSP, you can take it out and put it back in the next year.
Ready to get started?
You want it to be automatic? Click here for the Pre-Authorized Contribution form