Emergency fund, TFSA, first home, RRSP, investing — a decade-by-decade roadmap
Your 20s are the most financially leveraged decade of your life. Small actions now — a $200/month TFSA contribution, a secured credit card, an FHSA opened today — compound into massive advantages over the following 30–40 years. This guide gives you a clear roadmap of financial goals to achieve in your 20s, in priority order.
Before anything else — investing, extra loan payments, savings goals — build a cash emergency fund of 3–6 months of expenses. Target: $6,000–$15,000 depending on your monthly costs. Keep this in a high-interest savings account (EQ Bank, Wealthsimple Cash) where it earns interest but stays liquid. This fund protects every other financial goal. Without it, an unexpected car repair, medical expense, or job loss forces you to sell investments or take on high-interest debt.
How to build it fast: Save 20% of every paycheque automatically until you hit the target. KOHO savings goals make this painless.
Every dollar of investment growth, dividends, and capital gains inside a TFSA is permanently tax-free. The 2026 annual contribution limit is $7,000. If you turned 18 in Canada before 2019, you have over $60,000 of accumulated room. Your goal: contribute as much as you can afford annually — even $1,200/year ($100/month) is meaningful. Invest inside your TFSA in a simple all-in-one ETF like XEQT or VEQT via Wealthsimple Trade. See our full TFSA guide.
Target by 30: $35,000–$50,000 in TFSA contributions and/or balance.
The First Home Savings Account is arguably the best tax-advantaged account ever created for Canadians under 40. Contributions ($8,000/year, $40,000 lifetime) are tax-deductible AND withdrawals for a first home are tax-free. Open it as early as possible — room accumulates from your opening date. Even if you contribute nothing in year one, open it to start accumulating room. See our FHSA deep dive.
Target by 30: $24,000–$40,000 accumulated in FHSA contributions.
A credit score above 720 by age 25–28 qualifies you for the best mortgage rates, car financing, and even rental applications in competitive markets. Actions: get a credit card now and pay it in full every month, use KOHO Credit Building to add positive payment history to Equifax, keep your credit card utilization below 30%, and don't close old accounts. Your credit score is a financial tool that saves you tens of thousands of dollars over your life in lower interest rates. See our credit building guide.
Target by 28: Credit score 720+.
RRSP contributions make the most sense when your income is high enough that the tax refund is meaningful. For most Canadians, this means starting RRSP contributions seriously when income exceeds $65,000–$70,000 (puts you in the 33%+ combined marginal bracket). If you're still in your early 20s with lower income, the TFSA and FHSA are better priorities. But open an RRSP account and start building the habit. The contribution room is accumulating — you can maximize it later when the tax benefit is larger.
Target by 30: RRSP account open, RRSP match from employer (if any) captured, first voluntary contributions made.
Compounding rewards early action more than most people realize. Here's what consistent action in your 20s looks like in real numbers:
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