Losing a job can feel like being the last player picked in dodgeball—deflating and a little scary. When the bills start piling up, it’s tempting to dip into your Tax-Free Savings Account (TFSA) to keep things afloat. With around $70,000 in your TFSA generating dividends, you’re sitting on a decent financial cushion. But is it wise to start making withdrawals before your unemployment benefits kick in? Let’s break it down like it’s a plot twist in your favorite sitcom.

First off, the beauty of a TFSA is that the money you contribute grows tax-free. That means every dollar you pull out is yours to keep without worrying about taxes biting into your gains. Sounds great, right? But here’s the kicker: withdrawals can impact your long-term financial strategy. If you’re planning to use these funds as a short-term solution until you land a new gig, you’ll want to consider how much you’re taking out and how quickly you’re doing it.

Think of your TFSA as a treasure chest in a video game. You want to use those coins wisely to level up without depleting your reserves too quickly. If you withdraw too much now, you might find yourself in a tough spot later when you’re trying to make that treasure grow again. The dividends from your investments are working for you, and pulling out too much could diminish the power of compounding returns. It’s like trading in a rare Pokémon card for a snack; it might satisfy your immediate hunger, but you might miss out on that card’s future value.

Another thing to keep in mind is the uncertainty of unemployment benefits. Depending on where you live, there might be a waiting period before those funds start flowing in. If your TFSA is your only lifeline, it could feel like you’re running a marathon with one shoe. The trick is to create a plan. How long can you realistically sustain yourself with your current savings? How much do you need to withdraw monthly to cover essentials without digging too deep into your treasure chest?

Before you make any withdrawals, consider other options, too. Do you have an emergency fund separate from your TFSA? Can you cut back on some non-essential expenses while you search for a new job? Think of it as a financial scavenger hunt—every little bit helps and can stretch your resources further. Plus, taking a pause to analyze your situation might reveal opportunities you hadn’t considered, like freelance work or part-time gigs that keep your skills sharp while you hunt for your next big role.

Using your TFSA to cover bills during a job loss can be a good move if done thoughtfully. Just remember, it’s not just about the short-term fix; consider how your decisions today will affect your financial future. By carefully balancing your withdrawals with your need for cash flow, you can keep your financial game strong while navigating this tricky period. And when you do find that new job, you’ll be glad you played your cards right with your TFSA!