Imagine you are in your mid-twenties, making $30,000 a year. It can be tough to think about retirement. But the fact that retirement is so far away makes this an ideal time to start a Retirement Savings Plan (RSP). Just $100 a month can make a big difference.

However, you might also have more immediate savings goals, like taking a vacation. This is where the Tax-Free Savings Account (TFSA) comes in. A TFSA lets you earn interest tax-free, so your vacation fund grows faster, getting you closer and closer to the beach.

The ideal way to save money is to make monthly contributions to both an RSP and a TFSA. This will get your savings into top shape by focusing on both long-term (retirement) and short-term (trip) savings goals.