How to start investing with a TFSA

The plan

1. Check your contribution room. It accumulates from the year you turned 18 (since 2009); the 2026 limit is $7,000. CRA My Account shows your exact room.
2. Build your emergency fund first. Investments can fall in value; keep short-term money in savings.
3. Open a TFSA that can hold investments. Banks, online brokerages and robo-advisors all offer them. Compare fees.
4. Choose simple, diversified, low-cost investments. Match the risk to how long you'll leave the money invested.
5. Automate contributions. Regular monthly contributions remove timing decisions.
6. Don't over-contribute. Excess contributions are taxed at 1% per month. Withdrawals are added back the following January 1, not right away.

This week

• Look up your TFSA room in CRA My Account or the calculator below.
• Decide your monthly amount.
• Open the account and set the automatic contribution.

Calculators for this plan

• TFSA contribution room
• Compound interest / TFSA growth
• TFSA vs RRSP

General information, not financial advice. This plan is a general guide. It does not know your full situation. Check with a qualified professional and the official sources before making decisions.

Sources

• Canada.ca: TFSA contribution room
• Canada.ca: RRSP and TFSA dollar limits by year

Checked October 16, 2026. Rules and limits change; confirm with the source before acting.