I’m going to try and keep this one succinct and based around one question. Where do you keep your money?
I park my spending cash in my Tangerine Chequing Account. I have a defined amount of money that I spend no matter what each month. At the end of the month, the next month’s funds are in my account and an extra $100 just in case. This means I NEVER dig into my savings.
I keep a modest amount of money in a Tangerine Savings Account. The rate for this account is poor, but it’s easily to transfer money into my chequing. This is where I keep my vacation fund. It gains a tiny amount of interest, but it’s intended to be spent within a year.
High-interest Savings Account
I keep a varying amount of money in an EQ Bank High-interest Savings Account. This is where I keep my emergency fund. The rate is pretty decent and the money within is never mean’t to be spent. I let interest occur and do not withdraw it; just to have some extra liquid cash laying around should I need it.
Tax-free Savings Account
I use Wealthsimple for my one of my TFSAs. Through some bonuses I have $20,000 managed for free for the first year. I’ll see how the funds perform and contribute more accordingly.
I also use a Questrade TFSA to purchase specific ETFs. Currently, this account isn’t getting much action as I’m working on filling my Wealthsimple account to the free management limit.
Registered Retirement Savings Plan
Through my employer, I am currently contributing 18% of my income to this account. I max out the employer match at 10%, but it’s more convenient than opening a second RRSP for the additional 8%. The direct removal from my paycheque has helped me squeeze out more savings and I will continue with this strategy for a while.
Once I reach my TFSA limit, I will likely open a Questrade account to do additional trading in. Additionally, I may eventually collapse my travel fund into my EQ Bank HISA while I attempt another travel strategy (stay tuned for that).
You should know where your money is at all times and why it is where it is. Do you have a plan?