Achieving your financial goals isn’t as hard as you think

(NC) In the current economic climate, many young Canadians may not be thinking about saving or investing at all. Not only can saving feel like something older people do, but it can also feel overwhelming or intimidating to start thinking about saving, so many may avoid it altogether.

Start saving with any amount, no matter how small
Setting financial goals isn’t difficult if you know where to start. Whether you’re dreaming of buying property, thinking ahead to retirement or just wanting to save up for your next dream trip, you can create financial savings goals right now, no matter the number in your bank account.

“It’s a myth that you need to have a certain dollar figure to start saving for your financial future,” says Pat Giles, vice-president, saving and investing journey at TD. “When you’re starting to save and invest, it’s not so much that dollar amount that counts in the beginning; what matters more is getting into the habit of saving and sticking to it.”

Boost your financial confidence
Lack of confidence in financial knowledge is a major barrier for many Millennials and Gen Zers.

The best way to start is with one-on-one financial advice and a conversation with a personal banker, who can help go over the current state of your finances and create short- and long-term financial goals.

Discover the power of registered savings accounts
A Tax-Free Savings Account (TFSA) is a flexible option for short-term or long-term investments – to build an emergency fund or finance your upcoming wedding or next trip. You can use your TFSA for just about any goal, at any stage in life and withdraw funds at any time, subject to any products held within the TFSA. You just need to ensure you don’t go over your contribution limit, which you can find through the Canada Revenue Agency website.

A First Home Savings Account (FHSA) is a great option for those dreaming of owning a house or condo. “It’s a registered plan that lets qualifying first-time homebuyers save for their home, and it features the benefits of both a Registered Retirement Savings Plan (RRSP) and a TFSA: tax-deductible contributions, and tax-free qualified withdrawals,” says Giles. “Be sure to read up on the qualifications on the Government of Canada’s website.”

A FHSA allows eligible first-time homebuyers to contribute to the downpayment or purchase of a qualifying first home tax-free – with limits. Contributions are generally tax-deductible, and when a qualifying withdrawal is made, the amount is not taxable.

For those thinking ahead to retirement, consider an RRSP. When you contribute money to an RRSP, your contributions are tax-deductible. Any investment income earned from qualified investments held within the RRSP can then grow tax-deferred, as long as the money remains within the RRSP, until it’s withdrawn.

Chart your financial course
To figure out exactly which registered savings accounts are right for you, it’s best to book an appointment with a personal banker. Learn more at td.com.