Going to be making double the money, what to do with it

[tsomnlie]

I 24M will be going from ~32k (minimum wage) to ~74k.

I recently secured a government job as a IT-02 and will be making more money. I’m just wondering what is the best course of action for it. I’m lucky enough to be living at home still without rent.

I invest 400$/month into a TFSA managed by Wealthsimple and it’s currently at 15k (14 k net deposit and 6.84% return) another 400$ goes to a savings account to build up a emergency fund. I have around 800$ in monthly expenses. So that leaves me with roughly 400 in spending money a month.

I have no debt at all.

Im just curious what to do with the surplus of money? Do I contribute more to my TFSA or do I open a FHSA since the plan is to purchase a home?

Edit: From Ottawa, Ontario area (figured a general location would help for COL)

Edit 2: correct it’s not 52k it’s 74k I guess looked at after tax salary

 

[havard]

@tsomnlie You will be surprised how much you lose to deductions (pension, union dues, LTD, taxes). You’ll probably only take home about 65% of what you earn. Get your first few paycheques under your belt before making any decisions, because you may be taking home less than you think.

 

[snakecatch99]

@havard You are 100% correct. My son started a job as a IT 02 this fall and his take home is just under $1,800 net vs $2,884 gros.

 

[sharolhelm]

@snakecatch99 I can confirm, I make about $1,800 take home as an IT-02

Edit: $1,800 bi-weekly

 

[cla3114]

@snakecatch99 Man we are getting fucking robbed lmao. I don't even check my gross anymore cause it legitimately causes me physical pain.

 

[wow]

@cla3114 You think you’d feel robbed when you hit your 35 years with the top tier pension plan?

 

[sportfishingjunkie]

@wow Or until you need major (or even minor) medical care and don't have to spend what would be $100s of thousands in the States for people without coverage...

 

[jackwoo]

@sportfishingjunkie Can attest to this. One small surgery and a couple stitches. 2 days in the hospital. $130,000 USD

 

[cla3114]

@sportfishingjunkie What medical care?

 

[cla3114]

@wow Oh man I should have been more clear. I was thinking just about income taxes. Have no idea how those other deductions work since I've never worked in government.