Starting out on my own wasn’t easy. Living paycheck to paycheck was hard and made saving for my future even harder. Growing up, I was always taught the value of the dollar, and the thought of having to give part of my hard-earned money away was cringe-worthy. After searching for the right savings programs, I was lucky to discover Tangerine’s TFSA. Not only is this tax-free savings account linked to other savings accounts I have with the company, it helps me make money all along the way. Anyone 18 and older can open a TFSA, which means I can start saving early for retirement and big purchases.
A TFSA is perfect for me because I can put in as little money as I need to with no penalties or up to $10,000 a year if I can. Some months are definitely better for me financially, so the idea of having at least $10,000 of wiggle-room is perfect! I know that as time goes on, I’ll be able to save more and more money.
When can I take the money out of my TFSA?
What makes the TFSA most appealing is that I can take my money out whenever I need to without worrying about taxes taking most of what I’ve saved. Whether I need a new car, putting a deposit on an apartment, or just have an emergency I can’t handle on my monthly salary, I know I’m always protected. With an annual interest rate of 1.05%, I definitely get a return on my investment. Becoming a homeowner was something I never thought I could do in my 20s, but with my TFSA, I know it is definitely a step I’ll be making soon.
The flexibility of my TFSA fits my spontaneous lifestyle. If I can’t put in the annual limit one year, that difference carries over to the next year. For example, last year I could only save $7,000, this means I can put up to $13,000 into my account. And, with the new Kickstarter Program for 2016, I can start saving money now for next year’s account. I can double up my annual input to save even more now that I’m starting my career. I can put in $10,000 this year and another $10,000 for 2016! Plus, with double interest for all of 2015, I’m earning more than ever.
Let’s break down why I think a TFSA is the best choice:
- Flexibility: I can put money in when I want and take money out when I want with no penalties!
- I get to keep the money I save. I never have to worry about my money being taxed. Why take out $10,000 for a new car when half of it goes to taxes? With my TFSA, that NEVER happens.
- I can save for my future. Whether for retirement or a home, I know I have a back-up plan.
- $10,000 a year is a lot of room for savings growth!
If you haven’t opened a TFSA through Tangerine, what are you waiting for? Think of all the money you’re missing out on by hesitating!
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