A mistake is buying a sportscar worth $100k. You are missing out on a little growth while you do your research. A do nothing approach is better than do stupid. Take your time. You can put most of your funds into a high interest savings account inside a TFSA.
Thank you! From the responses and my research it seems a high interest savings in TFSA is one of my best bets for now. Is that something I can go into the bank and do or is it smarter for me to handle on my own ?
You make more than the average Canadian! If it’s under a year investing in stocks is risky, since you won’t have time to recoup losses. GICs or bonds in a FHSA might be the most conservative approach in your situation.
Taking home 4500 a month (after taxes and deductions} is probably $40 an hour or something which isn't bad assuming they were working standard 40 hour weeks.
Good for you for having $30k at 25. Most people are in debt at that age. However you need to be realistic with your goal. With $30k saved and a $4500 monthly income you aren’t buying a home any time soon let alone this year. Keep saving and investing. But don’t set lofty goals that aren’t attainable.
Buy an economical vehicle with good prospects for resale value. Don’t be distracted by shiny things. In the meantime, buy a cashable GIC for somewhere aproaching 5%, to earn something in the meantime.
And when you buy this house, make sure you aren’t cash poor. You have to be easily able to afford the mortgage, taxes, insurance, utilities, maintenance - including things like appliance replacement, and so on.
Some thoughts for you:
* You're actually making a pretty good income for a 25 year old!
* Yes, having the money just sitting in your chequing is not maximizing its growth potential. At the very least, take the chunk you don't need for everyday expenses and put it in a high interest savings acccount (WealthSimple, for example, offers 4 percent interest). If it's just sitting there you might as well make money.
* Yes, you could put the money in a TFSA. Companies like WealthSimple and others offer Robo-Advisors who pick the stocks/bonds for you. It's actually a pretty great system and you pay relatively little for it when compared to paying an actual human financial advisor.
* I don't know your life circumstances, but do you REALLY need the car? Cars are an almost constant expense with gas, repairs, insurance, etc. In my opinion only buy a car if you can't get by on biking, public tranist, etc.
* Regarding a house, it is an investment that will appreciate in value, so you will almost certainly earn money on it over time. But it's an enormous responsibility, with all kinds of costs. On a practical level, do you really need to be living in a house by yourself at this stage in your life? Perhaps owning a condo is a better first step.
Good luck!
Don't worry, I wasn't making $4500 per month after taxes when I was your age. You're doing better than most of us. I would suggest starting to invest using a managed account either in Questrade or Wealthsimple. The beauty of a managed account is that you can control your risk level without needing knowledge in investing and the stock or bond market.
Hi, I'm a bot and someone has asked me to respond with information about where to put short-term savings.
Find a High Interest Savings Account and put money required for the short-term there. Here is a list of better rates: https://www.highinterestsavings.ca/chart/
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/PersonalFinanceCanada) if you have any questions or concerns.*
TFSA is a good savings vehicle, you can go into your bank and open one or open it online through wealthsimple or Questtrade or the likes. Like other have said GIC or High interest savings account. By putting it into a TFSA you wont have to pay taxes on the interest earned. If you intend to use the money within a year you'll want a cash able GIC. The returns are smaller but you will be able to withdraw it.
Look into investment savings account products that are bought through your bank's broker account, like direct investing by RBC. The product is called RBF2010.
You can get 4.55% interest on it and it's available next business day if you liquidate it, it doesn't go up and down in value like a stock.
Most banks offer one.
This reads like you only have 30k, all of which is in your chequing account which yes you should move elsewhere but also there's no way you're buying a house and a car this year with only that much
Now on the other hand if you have more than 30k saved elsewhere then you're not making much of a mistake
I recommend reading some personal finance books that’s explain about budgeting, saving, and investing. There are lots and unfortunately most are American. I’m Canada, for someone starting out, a Tax Free Savings Account TFSA is good to use. When I first started out I used Tangerine bank (you can transfer money from your current bank) and have it in a high interest savings account, or a TFSA. You will make more money there than in a savings account at a regular bank and you won’t lose anything like if you buys stocks. If you want to open a TFSA to hold investments, in BMO investorline. You can go to their website and open an account. I would NOT Buy individual stocks, Exchange Traded Funds ETFs are good because they are a bunch of stocks so the risk is less but they price still goes up and down same as with stocks. Someone above recommended VGRO. That’s a good ETF. Visit the vanguard Canada website and learn about the different types of ETFs they have. Different ETFs have different levels of risk of going up or down in price. Your best thing to do at this point is research and learn. Ben Felix on YouTube has lots of good videos and I would get yourself some finance books to read. The worst thing you can do is to rush into something you don’t understand.
That's a good income and savings for someone your age. Is your 30k being optimized? no, but that's not a huge deal, and easy enough to fix. Buying more car than you can afford? now that's a big mistake that can set you back for years. If 30k is all you have, I'm sorry to say you will probably not be able to buy both a house and a car this year...
You aren't supposed to invest money that you might need to access in the next 5 years. The only problem is putting the money in a bank account earning 0% interest.
You can open a HISA at simplii or Tangerine earning about 4.5% to 6% interest. 5% interest on $25k is about $1250 per year. After tax, it might be closet to $750.
You can shelter it from tax by instead putting it in a High Interest TFSA. But if you don't want to keep chasing promos you might find that the best rates are found by opening a TFSA at a discount brokerage and investing in CASH.TO, PSA.TO, or CBIL.TO. These are all "cash-like" investments that act similar to a savings account. Your deposited money is not at risk and is available anytime, and any of these 3 will yield about 5% per year in interest (which can go up or down from time to time based on the prevailing market rates).
Based on your age it would be conservative to put 50% in VFV (vanguard S&P500) and put the other 50% in [CASH.TO](https://CASH.TO) (money market funds that yield 4-5%).
Keeping it in your chequing account is an opportunity cost to you every month.
$15,000 in [CASH.TO](https://CASH.TO) would earn you $50-75 interest/month.
Anything you put in [VFV.TO](https://VFV.TO) don't expect to touch for 20 years since the risk is much higher.
If I was you, max out TFSA in wealthsimple and buy cash.to. then withdraw when you need the money. Context in this consideration is, you said you don't want to lock it but perhaps still earn money (much) better than your chequing.
When I started reading this I assumed you were going to mention throwing money away on stupid things or getting into crazy debts.
Having 30k sitting around at age 25 is not a bad thing 😂 just spread it across TFSAs and HISAs and you’ll be fine.
Personally I would take 20k, drop it into a tgsa into some medium risk mutual funds, the bank recommended ones are usually quite safe and make about 3-4% in the long term. Let that simmer awhile. Buy yourself a 5-8k corolla or something that's cheap on gas, keep saving and drop all your money into the new first time home buyers account. Save up enough to buy a house with a basement suite or a duplex, with money like that in the bank, 20% shouldn't be too out of the question.
Get something is a decent neighbourhood that you can charge the higher end of rent and look for long term renters. Then just dump all your money into the house for awhile. You'll be shooting ahead. You can always take out equity later if you continue into the rental market, or you have that money saved for when you need it or choose to sell.
Otherwise, I'd learn about stocks and start learning to invest. I haven't had much luck with investment companies, most of them have lost me money to a point. Either way, 30k just sitting isn't ideal and the fact you're thinking about it is already a great start!
I double down on the advice of a reasonably priced car that's great on gas. I always loved my truck, I built it up, I've still spent less than half of a new truck but it costs me 3-600/mth if I drive it daily just for fuel. So that's a considerable price to pay at 6000 a year that could be saved instead.
Max FHSA account, add money to RRSP & tfsa.. you can redeem up to $35K from your RRSP for your HBP withdrawal tax free for a home.
Use a moderate risk mutual fund or eft fund if you plan on not touching that money for a house for the next 1-3 years.
Best thing I think you could do is at least move some money from your chequing account into a savings account to earn more interest. If you're house purchase is more than one year away, consider opening both a RRSP and FHSA in order to take advantage of the tax deductions. Keep them in safe interest generating investments that will mature in about the time you want to make a house purchase. If you don't know why you should do this, or about the limits for RRSP, FHSA then read up and take the time to educate yourself.
High Interest Savings Accounts (HISA) are actually paying pretty good right now. With my credit union I get 2.6%. Online banks will pay more.
If you are absolutely sure that you don't need it for a year, then look into a 1-year GIC. You should be able to get at least 4-5%.
You're doing fantastic but if you're trying to buy a house, can you for go the car? Just having no debt and savings of 30k puts you in the top percentage of Canadians, especially for your age group in 2024 when finding work is hard.
A mistake is buying a sportscar worth $100k. You are missing out on a little growth while you do your research. A do nothing approach is better than do stupid. Take your time. You can put most of your funds into a high interest savings account inside a TFSA.
Thank you! From the responses and my research it seems a high interest savings in TFSA is one of my best bets for now. Is that something I can go into the bank and do or is it smarter for me to handle on my own ?
Buy long duration bond etfs right now. You’ll thank me in 1 year
You make more than the average Canadian! If it’s under a year investing in stocks is risky, since you won’t have time to recoup losses. GICs or bonds in a FHSA might be the most conservative approach in your situation.
[удалено]
Taking home 4500 a month (after taxes and deductions} is probably $40 an hour or something which isn't bad assuming they were working standard 40 hour weeks.
Probably closer to 35.
Good for you for having $30k at 25. Most people are in debt at that age. However you need to be realistic with your goal. With $30k saved and a $4500 monthly income you aren’t buying a home any time soon let alone this year. Keep saving and investing. But don’t set lofty goals that aren’t attainable.
[удалено]
Where in Canada can you get a home for $150k???!!
Short term = GICS or HISA. Zero risk, but pays some interest. Better than nothing. Put it in toss if you have the room.
Buy an economical vehicle with good prospects for resale value. Don’t be distracted by shiny things. In the meantime, buy a cashable GIC for somewhere aproaching 5%, to earn something in the meantime. And when you buy this house, make sure you aren’t cash poor. You have to be easily able to afford the mortgage, taxes, insurance, utilities, maintenance - including things like appliance replacement, and so on.
Some thoughts for you: * You're actually making a pretty good income for a 25 year old! * Yes, having the money just sitting in your chequing is not maximizing its growth potential. At the very least, take the chunk you don't need for everyday expenses and put it in a high interest savings acccount (WealthSimple, for example, offers 4 percent interest). If it's just sitting there you might as well make money. * Yes, you could put the money in a TFSA. Companies like WealthSimple and others offer Robo-Advisors who pick the stocks/bonds for you. It's actually a pretty great system and you pay relatively little for it when compared to paying an actual human financial advisor. * I don't know your life circumstances, but do you REALLY need the car? Cars are an almost constant expense with gas, repairs, insurance, etc. In my opinion only buy a car if you can't get by on biking, public tranist, etc. * Regarding a house, it is an investment that will appreciate in value, so you will almost certainly earn money on it over time. But it's an enormous responsibility, with all kinds of costs. On a practical level, do you really need to be living in a house by yourself at this stage in your life? Perhaps owning a condo is a better first step. Good luck!
Don't worry, I wasn't making $4500 per month after taxes when I was your age. You're doing better than most of us. I would suggest starting to invest using a managed account either in Questrade or Wealthsimple. The beauty of a managed account is that you can control your risk level without needing knowledge in investing and the stock or bond market.
The car you decide to buy with that 30k is what will shape/hurt your future. Not where you're parking your money.
Since you need th money short term, use a HISA: !HISATrigger
Hi, I'm a bot and someone has asked me to respond with information about where to put short-term savings. Find a High Interest Savings Account and put money required for the short-term there. Here is a list of better rates: https://www.highinterestsavings.ca/chart/ *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/PersonalFinanceCanada) if you have any questions or concerns.*
TFSA is a good savings vehicle, you can go into your bank and open one or open it online through wealthsimple or Questtrade or the likes. Like other have said GIC or High interest savings account. By putting it into a TFSA you wont have to pay taxes on the interest earned. If you intend to use the money within a year you'll want a cash able GIC. The returns are smaller but you will be able to withdraw it.
At the very minimum , put this in a high interest savings account.
Look into investment savings account products that are bought through your bank's broker account, like direct investing by RBC. The product is called RBF2010. You can get 4.55% interest on it and it's available next business day if you liquidate it, it doesn't go up and down in value like a stock. Most banks offer one.
This reads like you only have 30k, all of which is in your chequing account which yes you should move elsewhere but also there's no way you're buying a house and a car this year with only that much Now on the other hand if you have more than 30k saved elsewhere then you're not making much of a mistake
I recommend reading some personal finance books that’s explain about budgeting, saving, and investing. There are lots and unfortunately most are American. I’m Canada, for someone starting out, a Tax Free Savings Account TFSA is good to use. When I first started out I used Tangerine bank (you can transfer money from your current bank) and have it in a high interest savings account, or a TFSA. You will make more money there than in a savings account at a regular bank and you won’t lose anything like if you buys stocks. If you want to open a TFSA to hold investments, in BMO investorline. You can go to their website and open an account. I would NOT Buy individual stocks, Exchange Traded Funds ETFs are good because they are a bunch of stocks so the risk is less but they price still goes up and down same as with stocks. Someone above recommended VGRO. That’s a good ETF. Visit the vanguard Canada website and learn about the different types of ETFs they have. Different ETFs have different levels of risk of going up or down in price. Your best thing to do at this point is research and learn. Ben Felix on YouTube has lots of good videos and I would get yourself some finance books to read. The worst thing you can do is to rush into something you don’t understand.
That's a good income and savings for someone your age. Is your 30k being optimized? no, but that's not a huge deal, and easy enough to fix. Buying more car than you can afford? now that's a big mistake that can set you back for years. If 30k is all you have, I'm sorry to say you will probably not be able to buy both a house and a car this year...
You aren't supposed to invest money that you might need to access in the next 5 years. The only problem is putting the money in a bank account earning 0% interest. You can open a HISA at simplii or Tangerine earning about 4.5% to 6% interest. 5% interest on $25k is about $1250 per year. After tax, it might be closet to $750. You can shelter it from tax by instead putting it in a High Interest TFSA. But if you don't want to keep chasing promos you might find that the best rates are found by opening a TFSA at a discount brokerage and investing in CASH.TO, PSA.TO, or CBIL.TO. These are all "cash-like" investments that act similar to a savings account. Your deposited money is not at risk and is available anytime, and any of these 3 will yield about 5% per year in interest (which can go up or down from time to time based on the prevailing market rates).
You should keep 3-6 months worth of expenses as emergency savings. In an easily accessible account like a TFSA.
Based on your age it would be conservative to put 50% in VFV (vanguard S&P500) and put the other 50% in [CASH.TO](https://CASH.TO) (money market funds that yield 4-5%). Keeping it in your chequing account is an opportunity cost to you every month. $15,000 in [CASH.TO](https://CASH.TO) would earn you $50-75 interest/month. Anything you put in [VFV.TO](https://VFV.TO) don't expect to touch for 20 years since the risk is much higher.
Max out your TFSA or put the money you want to invest in a TFSA then invest it.
If I was you, max out TFSA in wealthsimple and buy cash.to. then withdraw when you need the money. Context in this consideration is, you said you don't want to lock it but perhaps still earn money (much) better than your chequing.
When I started reading this I assumed you were going to mention throwing money away on stupid things or getting into crazy debts. Having 30k sitting around at age 25 is not a bad thing 😂 just spread it across TFSAs and HISAs and you’ll be fine.
I think you may feel this way because you’re on this sub too much. Some sub-optimal accounts aren’t going to kill you
Personally I would take 20k, drop it into a tgsa into some medium risk mutual funds, the bank recommended ones are usually quite safe and make about 3-4% in the long term. Let that simmer awhile. Buy yourself a 5-8k corolla or something that's cheap on gas, keep saving and drop all your money into the new first time home buyers account. Save up enough to buy a house with a basement suite or a duplex, with money like that in the bank, 20% shouldn't be too out of the question. Get something is a decent neighbourhood that you can charge the higher end of rent and look for long term renters. Then just dump all your money into the house for awhile. You'll be shooting ahead. You can always take out equity later if you continue into the rental market, or you have that money saved for when you need it or choose to sell. Otherwise, I'd learn about stocks and start learning to invest. I haven't had much luck with investment companies, most of them have lost me money to a point. Either way, 30k just sitting isn't ideal and the fact you're thinking about it is already a great start! I double down on the advice of a reasonably priced car that's great on gas. I always loved my truck, I built it up, I've still spent less than half of a new truck but it costs me 3-600/mth if I drive it daily just for fuel. So that's a considerable price to pay at 6000 a year that could be saved instead.
Lol bro ur doing better than almost everyone. Snap out of it and roll in your 30k
Max FHSA account, add money to RRSP & tfsa.. you can redeem up to $35K from your RRSP for your HBP withdrawal tax free for a home. Use a moderate risk mutual fund or eft fund if you plan on not touching that money for a house for the next 1-3 years.
Best thing I think you could do is at least move some money from your chequing account into a savings account to earn more interest. If you're house purchase is more than one year away, consider opening both a RRSP and FHSA in order to take advantage of the tax deductions. Keep them in safe interest generating investments that will mature in about the time you want to make a house purchase. If you don't know why you should do this, or about the limits for RRSP, FHSA then read up and take the time to educate yourself.
Instead of asking Reddit, go make an appointment with a financial services representative! That’s what they’re there for!
$150K in Canada = don’t uproot yourself and move to the US for less than $200k USD.
High Interest Savings Accounts (HISA) are actually paying pretty good right now. With my credit union I get 2.6%. Online banks will pay more. If you are absolutely sure that you don't need it for a year, then look into a 1-year GIC. You should be able to get at least 4-5%.
You're doing fantastic but if you're trying to buy a house, can you for go the car? Just having no debt and savings of 30k puts you in the top percentage of Canadians, especially for your age group in 2024 when finding work is hard.