Saving money is a crucial habit that can help preserve and grow wealth. As we work and earn a living, it is important to try and set a portion of our earnings aside to help meet our financial goals, like buying a car or home, having an emergency fund for unexpected expenses and changing life stages.    

Before I started my career journey at TD, I vividly remember when I landed my first job right after graduating from college. It was an exciting moment, and I was ready to turn my career plans into reality. But, as with most things in life, there was a big, unexpected twist – my plan to walk to work went out the window when I learned I would be posted to a location 30-minutes away from home with no reliable public transportation options in my community. This meant I would need to buy a car – and soon too!  

I now had a short-term goal to buy a used car, and after researching the type of pre-owned vehicle I’d need, I set a budget of between $4,000 and $6,000. 

Then, a big question loomed over me: Can I efficiently achieve this savings goal in as short amount of time as possible? 

To answer this question, I had to first determine what kind of savings vehicle to use. So, after considering a regular savings account, I further explored the Tax-Free Savings Account (TFSA) option by reviewing the TFSA information available on the Canada Revenue Agency website. Since I was not at TD at the time, I spoke with a banker at a local financial institution near me to better understand the details of a TFSA account, including its tax-free saving benefits and my eligible contribution limit.  

Through my research, I learned that I could also grow my savings in a TFSA through available investment options such as mutual funds and Guaranteed Investment Certificates (GICs). And because funds deposited in a TFSA can be withdrawn tax-free, any income earned from these investments would not be taxed. Once I decided which available investments worked best for me, I opened my TFSA and got my savings journey started.  

I budgeted carefully and reflected on what I could afford to put into my TFSA each month. I started by examining my income statements at the time, then subtracted my monthly expenses and determined that I could put the remaining money into my new TFSA.  

To make things even easier, I set up these monthly transfers on an automatic basis from my chequing account to my TFSA. This ensured I wouldn’t have to manually transfer the funds monthly – efficiency at its finest!   

Opening a TFSA did even more than help me buy a used car – it also helped me feel confident about my financial health and meeting my goal. 

By saving in this disciplined manner, I was cruising in my own car sooner than expected. While my initial goal was to save up for a car, my savings journey continues today as I set new financial goals for my future.  

The moral of the story? Your dreams might just be a smooth drive away too! To achieve your financial goals, you need to start by setting aside a portion of your earnings as savings, look into available savings vehicles to find the one that best suits your needs, create a budget and discipline yourself to stay with it. 

As you travel the roads of your own financial journey, visit TD Stories for more information about TFSAs. Also consider making an appointment with a TD Personal Banker at your local TD Branch who can help you create a savings plan that is tailored to your specific financial situation and can also discuss available savings investments, such as TD Mutual Funds and TD GICs, and the TD Pre-Authorized Transfer Service.