NAYLA Mag x 123 Finance: Building Wealth and Independence through Budgeting and Investing Top Takeaways

1. FHSA (First Home Savings Account)

If homeownership is a goal, the FHSA is a fantastic tool. It lets first-time buyers save up to $8,000 per year (max $40,000 lifetime) with tax-free growth and withdrawals for a home purchase. It combines the best of TFSAs (tax-free growth) and RRSPs (tax-deductible contributions).

2. Investing Inside a TFSA

Your TFSA isn’t just a savings account—it’s a powerful investment tool! Instead of letting cash sit idle, consider:

• Mutual Funds: Professionally managed but come with higher fees.

• Robo-Advisors: Automated investing with low fees and hands-off management.

• ETFs (Exchange-Traded Funds): Low-cost, diversified funds great for beginners.

3. Non-Registered Investment Accounts

If you've maxed out your TFSA and RRSP, consider a non-registered account. There are no contribution limits, but you’ll pay taxes on capital gains, dividends, and interest.

Pro Tips for Smart Investing

• Track Your Budget: Use Mint, Excel, or bank statements to separate needs vs. wants and determine how much you can invest monthly.

• Watch for Hidden Fees: Some investment accounts charge high management fees or trading commissions—look for low-cost options.

• Start Small & Stay Consistent: Even $50–$100 per month adds up over time.

• Start early!