Determine your needs

Getting your first job

Your first job is often the beginning of your active life. There are no mouths to feed yet, no house payments to make. Now is the best time to start saving because you do not have any major financial obligations.

You can take this time to develop good habits in managing your personal finances. To start off on the right foot, consult one of our financial services professionals. They know how to steer you in the right direction – on the road to success.

Managing your personal finances

Create a budget	A budget can help you realize how much money you make and how much you spend. It can help you decrease your spending. It will give you an overall picture of your financial situation.
Create an emergency fund	Having an emergency fund will enable you to pay your normal expenses for a few months, if a problem arises.
Use your credit cards wisely	Avoid using your credit cards to finance your purchases. Making unwise use of your credit cards can very quickly take a turn for the worse. Do not fall into the trap!

Savings advice

Save 10% of your income	Make automatic deposits of 10% of your salary into a savings account (RRSP or non-RRSP) every time you get paid or every month. You will benefit from the advantages of compound interest and your savings will grow more rapidly.
Contribute to an RRSP	RRSP contributions will lower your taxable income and therefore, the amount of taxes you have to pay. You accumulate interest that is tax sheltered on the money saved.

Tax-saving suggestions

Spread out the re-payment of your student loan

Take as much time as you are allowed (usually 10 years) to pay back your student loans. Doing this means you will benefit from:

A better rate of interest – the interest rate on a student loan is generally lower than that of a personal loan;
A tax credit (in Quebec only).

Contribute to your RRSP now and use the tax deduction later

Will your income increase substantially over the next few years?

Contribute to your RRSP now but use the tax deduction later. The reason for this is simple: the higher your tax rate, the greater the deduction you will enjoy.

Insurance advice

Take out life insurance while you are still young	Life insurance will cost you less while you are young and healthy. It is in your best interest to get coverage now, at a lower cost.
Make sure you have an income in case you become disabled	You might also want to think about getting disability insurance. If you ever become disabled, such coverage will replace the income you get from your job.