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Saving for Tomorrow and Living Well Today: A Practical Plan for Younger Adults

Written by Tom Anderson | January 14, 2026 5:21:33 Z PM

If you’re under the age of 30, you’ve likely felt the push and pull between building a solid future (hello, down payments and home ownership) and enjoying your life right now (leaving your parents’ home, travel, and trying new experiences). The good news? You don’t have to choose one or the other. With a simple plan and a few consistent habits, you can save for meaningful long-term goals and still say yes to the moments that make life rich.

 

Step 1: Name Your Goals (and Give Them a Deadline)

 

Start by listing what you’re saving for, then sort them into two categories:

 

Short-term goals (0–3 years)

  • Moving out or furnishing your first apartment
  • Travel or a “big experience” fund
  • A car, emergency fund, or wedding

Long-term goals (3+ years)

  • Down payment for a home
  • Children and parental leave
  • Retirement (yes, even now!)

Being specific helps: instead of “Travel”, your goal should be something like “$2,000 for a trip in 12 months.” “A house” should instead be “$50,000 down payment in five years.” Seek out trusted advice from a member of Kindred’s Wealth and Investment team to determine what an appropriate savings goal might be.

 

Step 2: Build a Two-Bucket Savings Plan

 

The simplest approach is to create two savings “buckets” you contribute to every pay cheque:

Bucket A: Short-Term Savings

This is money you’ll likely use within the next few years. Keep it accessible and low-risk (a short-term GIC or high-interest savings account). This bucket helps you enjoy life today without guilt, because it’s planned.

Bucket B: Long-Term Savings

This is for goals that take time and are further into the future. Long-term savings often do better when you invest or use accounts meant for building wealth over time (especially for retirement or home savings). Investigate registered account options such as a Registered Retirement Savings Account (RRSP), and a First-Home Savings Account (FHSA). The key is to start early. Even small amounts matter.

 

Step 3: Use a Simple Monthly Saving Formula

 

If you’re not sure how much to save, try this starting point and adjust as needed:


20% of take-home pay to savings and goals

  • 10% to Bucket A (short-term goals)
  • 10% to Bucket B (long-term goals)

If 20% feels too high right now, begin with 5% and increase by 1% every few months. Progress beats perfection.

 

Step 4: Protect Your Future with an Emergency Fund

 

Before saving for travel or a wedding, aim for $1,000 starter emergency savings, then build toward 3 months of essential expenses. An emergency fund keeps a car that won’t start or furnace that quits in the night from becoming long-term debt.

 

Step 5: Automate Everything (So You Don’t Have to Think About It)

 

The easiest saving plan is the one that runs in the background. Set up automatic transfers on payday:

  • A set amount to short-term savings
  • A set amount to long-term savings

Automation turns saving into a habit rather than a decision.

 

Step 6: Keep “Living for Today” in the Budget—On Purpose

 

Living for today isn’t irresponsible. It’s healthy. The trick is to plan for it so it doesn’t derail you.

 

Try setting aside a “joy fund” (even $25–$50 per pay cheque) for:

  • dinners out
  • weekend getaways
  • concerts
  • hobbies
  • visits home

When fun is budgeted responsibly, it becomes sustainable—and you can enjoy it without financial regret.

A Sample Plan You Can Copy

  1. Pay essentials first (rent, groceries, transport, bills)
  2. Automate 10% to short-term goals
  3. Automate 10% to long-term goals
  4. Build an emergency fund steadily
  5. Include a joy fund so life stays full

Saving for the future doesn’t mean putting your life on hold. It means building a foundation sturdy enough to support the life you want both today and tomorrow. Small steps, taken consistently, can take you surprisingly far.

 

To discuss how you can reach both your short-term and long-term savings goals, meet with a member of our Wealth and Investment team today.