TFSA - regular savings account or tracked?
Hi, Newbie here
I currently have my TFSA set up as a regular savings account but I treat it the same way i would my RRSP ... i do not touch it; it will gather interest and I will use it for retirement or ENORMOUS emergencies should the need arise. It is still quite small but i have faithfully not touched it in about 3 years...YAY me!
Is it best to leave it as a regular savings account or should i change it to a tracked account?
Money flows into it in small doses every month but as i said NOTHING flows out. At the moment it LOOKS like i have all this $$ but really i dont (or at least in my mind that money DOES NOT EXIST FOR USE).
What is the "best practice" for this type of account?
for the non canadians some definitions:
TFSA - Tax Free Savings Account
RRSP - registered retirement savings plan
If your are treating it like a retirement savings account, just set it as a tracking account. It you do have an emergency where you need it, transfer it in as income and budget it to where you need it. It will show up as income from that account in the report tools so you can see how much was taken out.