Outside of your RRSP, the TFSA is a great savings tool to help you achieve your short- and long-term goals. For example, let’s say you wanted to travel around Italy for three-weeks sometime in the near future — say, in five years. If you started with an investment of $25 and then added another $25 per week, with an annual interest rate of 5%, you could have approximately $6,900. Now, imagine if you had a longer goal of 20 years? You could have approximately $41,000.
That’s the joy of compound interest.
To see how your next financial plan could grow, check out the savings calculators found through Mycanadalifeatwork.com: log on and select the Learning section to access a variety calculators, then choose iAquaint and then pick calculators. Now, play with any variable you like to see how you can reach your financial goals and make your money work for you!