What Should I Do Next With My Money?
Seven quick questions, then a plan in a sensible order, with the right calculator or MITEY specialist site for each step.
For most Canadians the order is: know your cash flow, keep a small emergency cushion, take any employer match, pay off high-interest debt, build three to six months of savings, then save for a home in an FHSA and for retirement in a TFSA or RRSP. Answer below to see your version.
Figures as of 2026-11-13.Your situation
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Your plan, in order
Know your monthly cash flow ✓
You have a surplus; write it down so every dollar has a job.
Take the full employer match
A match is an immediate return on every dollar you put in; few other moves beat it.
Pay off high-interest debt
Card balances average 21.35% (Bank of Canada, 2026-08): paying them off is a guaranteed return at that rate.
Debt payoff plannerConsolidation: SecondMortgageCalculator.caCredit help: CreditGeeks.ca
Grow the emergency fund to 3–6 months
The Financial Consumer Agency of Canada suggests three to six months of expenses, kept somewhere safe and easy to reach.
Open an FHSA and plan the down payment
$8,000 a year of deductible room ($40,000 lifetime), tax-free for a first home. Then see what price your income supports.
FHSA + HBP planner: MortgagePreApprovals.caAffordability: MortgageAffordabilityCalculator.caMortgage paymentsClosing costs
Fill your TFSA (and RRSP if your tax rate is high)
TFSA growth is tax-free ($7,000 new room in 2026); RRSP contributions are deductible and usually pay off most when your tax rate now is higher than in retirement. Keep fees low.
Run a retirement projection
Check that today's savings rate reaches the spending you want later.
Retirement calculatorCPP & OAS start agesRetirementPlanner.ca
| Monthly surplus | Yes |
|---|---|
| Emergency cash | 1–3 months |
| Card balance | Yes |
| Employer match | Not all taken |
| First three steps | Take the full employer match → Pay off high-interest debt → Grow the emergency fund to 3–6 months |
If two steps both apply, do the one with the higher interest rate attached first.
The MITEY network, by question
Frequently asked questions
What order should I tackle my finances in?
A common order: know your cash flow, keep a small emergency cushion, take any employer match, pay off high-interest debt, build three to six months of savings, then save for goals and retirement in tax-sheltered accounts. Your situation may change the order; this is education, not advice.
Should I pay off debt or invest?
Compare the interest rate on the debt with what the investment can reasonably earn after tax. A credit card at over 20% almost always comes first; a low-rate mortgage often doesn't.
Sources
- Financial Consumer Agency of Canada — Making a budget. Checked .
- Financial Consumer Agency of Canada — Setting up an emergency fund. Checked .
- Canada Revenue Agency — MP, DB, RRSP, DPSP, ALDA, TFSA limits, YMPE and YAMPE. Checked .
- Canada Revenue Agency — First Home Savings Account (FHSA). Checked .
- Bank of Canada — Effective rate on outstanding credit card balances (series V122667812) (effective August 1, 2026). Checked .