Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomePersonal FinanceDebtRetirementHow can I start saving in an RRSP and TFSA when every time I try, debt payments or unexpected expenses derail me?FP Answers: Paying down high-interest balances, building an emergency fund and automating contributions can help you get on trackLast updated 1 hour ago It may feel as though willpower is the issue, but debt payments and everyday spending are often using up a paycheque before you get the chance to set savings aside, writes Mary Castillo. Photo by SB Arts Media - stock.adobe.comWe independently select everything we recommend. Buying through us may earn us a commission, which supports our work.Q: I am 35 years old and I have nothing saved for retirement. Every time I plan to start, an unexpected expense occurs or I need to pay down debts. Last month it was a car repair. The month before it was my credit card bill from attending a friend’s destination wedding. I have a decent job but no real plan, other than that I should save. Hopefully it’s not too late to catch up. Where do I start? —RyanSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorFP Answers: Starting from zero at 35 is more common than you might think, and it does not mean you have missed your chance. Rather than viewing this as an age problem, it may help to see it as a budgeting problem. That is good news because budgeting problems have practical solutions. With about 30 years until a typical retirement age, you still have time for regular contributions and compound growth to build.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againRecognizing the problem is a helpful first step but figuring out what is getting in the way can take a little more work. It may feel as though willpower is the issue, but debt payments and everyday spending are often using up a paycheque before you get the chance to set savings aside.In addition, interest on a credit card balance, car loan or overdraft protection works against you each month, while savings is left with whatever remains, which is often very little. The goal is to reduce those costly outflows so you can redirect more of your money toward your future.Start with an honest household budget. Track every dollar for one full pay cycle, paying particular attention to variable expenses. As you review the numbers, consider what is truly essential and what could be adjusted. This exercise often reveals money that could be redirected from interest charges or lifestyle spending toward your future.If you are carrying high interest debt, such as a credit card balance, make paying it down a priority because the interest rate is likely higher than the return you would earn on savings. A non-profit credit counsellor can help you identify the best strategy so that you can start saving before you are completely debt free, especially if your employer matches retirement plan contributions.An employer matching program is free money, and passing it up while you repay a loan can cost more than it saves. A modest automatic contribution alongside steady debt payments is often more sustainable than an all-or-nothing plan that never gets started.Once you have a debt repayment plan in place, a financial adviser at your bank or credit union can help you decide how to divide contributions between a registered retirement savings plan (RRSP) and a tax-free savings account (TFSA), based on your income and goals. In the meantime, use reputable Canadian resources to build your knowledge so you can approach that conversation with informed questions and greater confidence.Keep your first step small and automatic. Consistency matters more than starting with a large amount. Set up a fixed transfer of $50 or $100 each payday, treat it like a bill you have committed to paying and increase the amount whenever you receive a raise instead of letting the extra income flow into spending.Finally, begin building a small emergency fund — even $1,000 is a useful starting goal. Without that cushion, the next car repair or dental bill may end up back on a credit card, restarting the cycle that has made saving difficult.Thirty-five may feel late if you compare yourself to someone who began at 25. But a more helpful comparison is between the person you will be at 45 if you start today and the person you will be if you keep waiting to feel ready. You cannot change when you started, but starting now will make a difference.Mary Castillo is a Saskatoon-based credit counsellor at Credit Counselling Society, a non-profit organization that has helped Canadians manage debt since 1996.Do you have a debt question for FP Answers? Email wealth@postmedia.com. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.