Creating a plan to reach your goals

Consider different options for reaching your goals

There may be more than one way to reach your goals. If your goal is to save $10,000 in the next 2 years for a car, you’ll need to save about $420 each month. You could save that money in a savings accountSavings account A bank account intended for depositing funds. Pays interest and lets you withdraw cash at any time.+ read full definition. Or you could save it in your RRSP, reducing the income taxIncome tax A charge you pay based on your total income from all sources. The Canadian government and your province set the rate.+ read full definition you owe. Then you could set aside your taxTax A fee the government charges on income, property, and sales. The money goes to finance government programs and other costs.+ read full definition savings for your car.

8 questions to ask yourself

  1. How much do you have to save each month to reach your goals?
  2. How should you investInvest To use money for the purpose of making more money by making an investment. Often involves risk.+ read full definition your savings to help your money grow?
  3. If your goal is to pay off debtDebt Money that you have borrowed. You must repay the loan, with interest, by a set date.+ read full definition by a certain date, how much do you need to pay back each month?
  4. Will you need to change your spending habits to save money or pay off debt?
  5. Would you be able to pay your bills if you lost your job or had an accident and couldn’t work?
  6. How can you lower your taxes?
  7. How much income will you need when you retire?
  8. How can you reduce taxes on your estateEstate The total sum of money and property you leave behind when you die.+ read full definition?

3 tools to help you explore your options

  1. Pay off credit cards and debt calculator
  2. Pay down debt or invest calculator
  3. RRSP savings calculator​

 Take action

Use this calculator to figure out how much you need to save toward your goals.

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