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I have money coming in. Where should it go?

Most people never get a plan because plans look expensive and complicated. This one takes five numbers and your goals, and hands back a monthly plan: cushion first, expensive debt next, then each goal in the account that fits it, with the growth you can expect.

Worth knowing before you start

  • Three months of bills in a high-interest savings account is the foundation. It is what keeps the next surprise off a 21% credit card.
  • A debt above 7% is a guaranteed loss no investment beats. Clear it before you invest, but still take an employer match: that is an instant 100% return.
  • Match the account to the goal: TFSA for flexibility, FHSA for a first home, RESP for a child (the government adds 20%), RRSP for retirement once your tax rate is 30% or more.
  • Time does the heavy lifting. At 5.8% money doubles about every 12 years, so $1,000 at 30 is roughly $7,000 at 65 without adding a cent.

The steps, in order

  1. 1 Build my planIncome, bills, debts and goals in; a monthly plan with accounts, growth charts and calculated tips out.Open the My money plan →
  2. 2 What do I actually take home?The number the plan starts from, per paycheque, for your province.Open the Take-home pay calculator →
  3. 3 Which account for which goal?The one tax rate that decides RRSP versus TFSA, and when the FHSA wins.Open the RRSP vs TFSA vs FHSA calculator →
  4. 4 How fast can I clear my card?Payoff date, the payment that clears it by a date you pick, and whether a balance transfer helps.Open the Credit card payoff calculator →

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