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Just as life evolves, so do your planning needs.

Watch the video to learn how Total Wealth can help support you for life

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La vie évolue, et vos besoins en planification aussi.

Regardez la vidéo pour savoir comment la Planification globale peut vous accompagner toute votre vie.

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Consider the 50/30/20 “rule” (Figure 1).

It isn’t a strict rule that’s set in stone – the percentage allocations are flexible – but the key is to maintain a balanced budget.

Figure 1: 50/30/20 budget rule

The 50/30/20 rule is a simple budgeting guideline which suggests allocating your income like so: 50% to needs (essentials like housing, groceries, and utilities) 30% to wants (non-essentials like dining out, entertainment, and hobbies) 20% to savings and debt repayment.

We asked Canadians how much they invest in a recent poll. 45% of Canadians said that they invest regularly each month. The median amount invested monthly was $375¹, with that amount increasing with age (Figure 2). While everyone’ situation is different, these figures can help provide a benchmark for your savings level.

¹ Source: Scotiabank 2024 Investment Poll.

Figure 2: Median monthly investment amount by age group in Canada

An illustration of the median monthly investment amount by age group in Canada. Age group 18-34, median monthly investment amount was $230. Age group 35-44, median monthly investment amount was $400. Age group 45-54, median monthly investment amount was $400.. Age group 55+, median monthly investment amount was $500.

Source: Scotiabank 2024 Investment Poll.

If the math isn’t mathing, here are some ways to find extra money to save:

Have an honest conversation with yourself: what are your needs vs. “nice-to-haves?”
Negotiate bills when possible
Start a side hustle
Find creative ways to save on things you enjoy (for example, dining at more affordable restaurants or watching movies on discounted days)
Search for deals or wait for sales when making purchases
Sell unused items
Cut unnecessary subscriptions

In Canada, there are registered and non-registered accounts. Generally, you’ll want to maximize registered accounts first because of the various tax benefits they offer

	Tax-Free Savings Account (TFSA)	Registered Retirement Savings Plan (RRSP)	First Home Savings Account (FHSA)
What’s it for?	Grow your savings, tax-free Withdrawals whenever you need to Save for multiple goals in one account	Contribute to your retirement savings on tax deferred basis Potentially reduce your taxable income while your investments grow tax-free Optional programs available to help you buy your first home or pay for your education	Save for your first home¹, including a down payment Grow your savings, tax-free¹ Potentially reduce your taxable income while your investments grow¹
Contribution limits	$7,000 – 2025 limit Plus any available accumulated contribution room since 2009²	18% of prior year’s income (minus any pension adjustment) to a maximum of $32,490³ (2025) Plus any unused contribution room	$8,000 – annual limit $40,000 – lifetime limit Plus a maximum of $8,000 carry-forward of unused contribution room from the previous year⁴
For more information	More about the TFSA	More about the RRSP	More about the FHSA

See disclosures at bottom of the page for more details.

There’s lots of great investment options out there, like individual stocks, exchange-traded funds (ETFs), index funds, mutual funds, and more. But how do you know which option is suitable for you?

The appropriate investment solution will depend on your goals, time horizon and ability to stomach risk. A great place to start is with a Scotia Portfolio Solution tailored to your risk tolerance and goals. On top of being an easy single-ticket investment with everything you need one place, Scotia Portfolio Solutions offer low investment minimums, instant diversification, and professional management. You will leave all the day-to-day decision-making and rebalancing to the experts (compliance?) so you can set it and forget it.

Feeling intimidated by your options or have questions? Your Scotiabank advisor can give you financial advice to help you choose the right portfolio for you so that you can feel more confident about reaching your financial goals and have one less thing to worry about (Figure 3).

Figure 3: Help is here

Bar charts comparing Canadian investors who met with their advisor in the last 6 months, vs those who did not meet with their advisor in the last 6 months. It shows that those who met with their advisor in the past 6 months tend to agree more. My advisor understands my specific needs and make appropriate recommendations. My advisor makes me feel confident about my financial situation. My advisor keeps me on track to meet my goals

Source: Scotia Global Asset Management Investor Sentiment Survey, Fall 2024.

See Figure 4

Just as life evolves, so do your planning needs.

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La vie évolue, et vos besoins en planification aussi.

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Apply the 50/30/20 “rule”

Average savings in Canada

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