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Thursday, March 18, 2010

Talk About It, Talk About It, Talk About It...

BF and I have been talking about money lately. He finally had a chat with his future employers (his mom and her business partner) about everything! His salary, benefits, rent, etc. Yes he will be living above where he is working. It's a REALLY nice small apartment and perfect location!

He has a bunch of money saved up, about $31,000 (he doesn't know the exact amount, but that's the minimum of what he has saved). Once he is finished school he will owe about $39,000 he says. So he figures he will pay off $30,000 right away (unless he decides to buy a car), but either way he will put a good chunk onto his balance. I also figure that once he starts working, he will have almost $1000 to put toward debt, as well as $600 a month toward savings. So he could be debt-free in less than a year!! Then he can have a little more fun with his money and start putting it toward a future fund and more into savings.

I also brought up the idea of opening a joint account together to start a "future fund." This fund could be put toward a wedding, honeymoon, house, etc. I said maybe we could both contribute $100 bi-weekly starting in the fall. He said it was a good idea. Then I thought maybe he could open a TFSA, and I could continue with mine and turn them into our "future funds" to earn a higher interest and it would be tax-free instead of the joint account. He liked this idea too, this would also allow us to contribute at our own rates (he will have a steady income, while mine is variable). Although I do still like the idea of being held more accountable to make sure I have that $100 bi-weekly and it would be nice to start a joint account too! Teamwork :)

Do you think a joint account or using our TFSA's would be better to use as a future fund? Also, do  you think it would be wise to aggressively pay off his student loans, or would it be better to put more into savings or something else?


  1. I think the TFSA is the best option. If you do a joint account, you'll have to pay taxes on the interest earned

    If you take out the TFSA and raid it when you need it, you can always re-contribute the amount later....

  2. Jordan and I went back and forth on this and settled with the joint account. The interest you accrue will be minisucle and thus so will be the taxes owed on it. We went joit for a few reasons - but they included being accountable to each other (which you mentioned) - on top of that we reach big goals faster - because we're both contributing to it.