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I'm 27 and I live with parents at the moment. I save 2k a month without fail. I have 17k loan on a car (there is no building interest, as in I won't pay more if I pay it out longer). I also have 17k loan left from a loan that I got to help my dad consolidate his credit card debts. He is paying that off and will be paid in about 2.5 years. He went from paying $600 a month in interest to significantly less.

My financial goals are to move out. The area where I live apartments go for about half a million and up for a standard 2 bedroom. Even though I intend to live alone, I still would prefer to get a 2 bedroom so I can resell easier in case I were to move for a job opportunity or such. Or even rent it down the road if I pay it off.

Right now I have my 15k of savings inside a TFSA sitting accumulating a joke of 0.4% interest. I know I can do better, but I was too afraid to risk any of it. I know nothing about stocks and I don't have a lot of time to learn it.

What would you suggest for me to do to achieve my financial goal?

One other thing to note that may be relevant, my parents rent and I'm also afraid should worst come to worst I may need to support them, in which case that 2 bedroom may become a necessity. Their pensions plans are next to none and they are getting old, so from my perspective this is inevitable. They are my parents and I'll do what I have to, but since I have time now to get ahead, how would you advise me to do so?

Lastly, I never owned a house so I would be a first time buyer and I do live in Ontario.

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My financial goals are to move out.

That's not a financial goal. It's also one goal.

What would you suggest for me to do to achieve my financial goal?

  • There must be banks with better TFSA rates.
  • What's the rate on your car loan?
  • Are you paying your parents' consolidation loan, or did you just co-sign it?
  • Owning is a big step, and fiscal prudence requires that you have a good-sized down payment. At least 20% (which means $100K).

Thus, I'd:

  1. rent in an outer suburb (where the costs are lower, so that you can save more),
  2. find a high yield bond fund to put your TFSA money in (realizing that there will be some risk; if the possibility of losing 30% for a year or two is too risky, find a bank with better rates),
  3. live below my means (which you should be doing anyway).
  • I somehow find your answer very condescending and really not helpful. I also feel that you haven't really read my question as you are suggesting for me to increase my monthly costs. – Bob Oct 15 '17 at 15:20
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    @Bob how in the world is it "very condescending"? As for whether or not you think it's helpful, I can't do anything about that. I asked valid and important questions, and made honest suggestions based on your situation and wishes. – RonJohn Oct 15 '17 at 15:36
  • @RonJohn when he says "my financial goals are to move out" and you focus on the language rather than the actual message of "my goal is to move out, how can I achieve this with my current financial situation" it can be offputting. Regardless, I think this is generally good advice. Live in a crappy apartment for a few years while mostly eating at home and you can accelerate your savings enough to put yourself in a reasonable home. – Our_Benefactors Oct 20 '17 at 20:50

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