New to the forum but I've been a reader for a few weeks now and am very pleased to see all the information and opinions made available.
I was wondering if anyone could provide some insight on a savings plan that I hope to put into place once I get myself out of debt (in 3-4 months). Note that I'm 24 and have pretty much put myself into debt since I got a professional job, however since January I have been paying everything off and will be free by summer's end. While I have read about various opinions in regards to saving over paying down debt - it was more important to be to pay everything off, then save.
Having done some research and readings I've thought of something like this (all percentage is monthly):
10% into an Emergency/Travel Fund (I've thought about separating these two)
10% into Long Term Savings
20% into an RRSP
10% into Short Term Savings
A portion of my funds will go into my pocket in addition to some expenses but that still leaves me with over $500 to put somewhere.
What I'm looking for is advice in terms of what accounts to put these funds into? Right now I am with Vancity (and have been since I was 12) but I recently opened a savings account and a US savings account with ING Direct. Should I deem this account to be my long-term, untouchable savings account?
I have no plans of investing yet, but it would be something to look at in 2 or 3 years once I have a cushion.
Short Term Savings: Goal is to have this for purchases - is in the ING Direct account adequate since it gives me access to my money immediately?
Long Term Savings: Same as above, I would use this for savings over a term of 2-3 years for say a down payment on a car or a house/apartment. Is there a better way of yielding a higher interest rate over a fixed term?
RRSP: I will probably open with Vancity, unless anyone has a better alternative?
Emergency/Travel Fund: As I live at home, I don't "need" this but I would like to have something set up for when I move out (2 years tops). Should I split this into two separate saving accounts? Is another account with ING (or another institution sufficient)?
With the extra money that I have left over after expenses, what's my best option to do with that? It will be between 500-700 monthly which I throw into a savings account?
My apologies for asking a lot but I do hope someone can help me out.