Illness, K-Cups, Interest Rates and #BestOfThisWeek
Back in 2015 interest rates fluctuated little and usually only went down, ah for those heady days? Many other good finance stories, as well.
Canajun Finances
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2015
Debt Limiting Idea
Big Cajun Man expresses concern over the high debt levels in Canada, which are fueled by cheap interest rates. He proposes a radical, but unlikely to be implemented, idea to slow the ‘tsunami of debt.’ The idea involves using erasable tattoos that say ‘Debtor’ on the back of a person’s hands in exchange for a 25% discount on loan interest rates. This tattoo would be a condition for receiving the loan and would be removed once the debt is repaid. The author acknowledges its potential to drive people towards alternate lenders.
Lower Prices in January in Canada, Pull the Other Leg
The consumer price index for January in 2015 was fairly low, but no one knew the excitement that was going to come soon.
Saint David’s Day and #RandomThoughts
Hope everyone is enjoying the festive last week of RRSP season and for those who enjoy getting that last-minute Income Tax break buzz, you have until Monday next week to get your last minute RRSP contributions in place, to get a break on your 2014 taxes. As I mentioned this week, maybe we should have this kind of excitement for TFSAs? It’s not necessary as the limits carry forward for you (another reason to like the TFSA more than the RRSP).
Sunday is Saint David’s Day for my Welsh brethren. Wales plays France on Saint David’s Eve, let us hope for a festive win to help usher in this happy day. Dydd Gwyl Dewi Hapus.
Dydd GwÅ·l Dewi (Sant) hapus
I gave blood again this week, and due to a small pimple on my regular “giving arm” I gave with my right arm this time. Always an exciting time, but it worked just fine, and I can now feel pious for Lent, knowing I helped someone out. Have you given blood lately? If you can, why not?
The Rideau Canal has set a record for a number of days open this year. We in Ottawa hope it won’t still be open in May.
My Writings for Week Ending February 27th
I did enjoy the festive feel for this final week of RRSPs, and my twitter feed was peppered with useful RRSP commentaries :
- Didn’t hear if anyone used my RRSP Bingo card for their RRSP purchases, I hope someone had fun with it.
- What order do you do your savings RRSP then TFSA ? I have a different idea, but if you are a regular reader you can guess my point of view on this.
- Lent Begins, Freezing Temps, Apples and RRSP and #BestOfThisWeek
RRSP then TFSA ?
One of the most common questions I get is: “Should I contribute to my RRSP or TFSA first?” After years of managing my finances and learning some tough lessons, I’ve landed on what I think is a practical answer—but only after dealing with your debt.
If you’re carrying debt, focus there first. Once you’re debt-free, I personally recommend prioritizing your TFSA. Why? Because it gives you flexibility. The money is accessible, withdrawals are tax-free, and you can use it when needed without tax consequences. That kind of liquidity matters—especially when life throws you a curveball.
The RRSP has its place too, but it’s more of a long-term tool. Yes, you get a tax deduction now, but you’ll pay taxes later when you withdraw. For someone earning a standard income, that could mean giving a big chunk back to the CRA later on.
Ultimately, if you’re out of debt and saving, do both if you can. But if you have to choose, I say: max out your TFSA first, then contribute to your RRSP.
Keywords: TFSA RRSP, Canadian personal finance, retirement savings, tax-free savings, RRSP contributions, TFSA vs RRSP, debt vs saving strategy
