How would you spend your tax refund?
It’s the time of the year where most people are busy filing their personal income tax. (Remember the deadline is April 30, 2012).
If you filed it earlier, you probably would have received your tax refunds. So what would you do with it this year?
Last year at the same time, I read an article from Globe and Mail, here are few tips that I would like to share again.
Pay down the debt:
- You should first consider paying down your debt, especially those with high interest rate and are not tax deductible. (i.e.: Credit card, consumer debts, unsecured line of credit)
Save or invest it
- Depending on your situation, you may want to invest into RRSP so you could get more tax savings for the year 2012. Another strategy is to invest within the TFSA, so your money could grow tax-free.
Make a donation
- Help out others in need, even a small contribution to make a huge difference to someone’s life. When you make a donation to a registered charity, you could get a tax credit.
- Everyone needs to be rewarded every once in awhile. The idea is not spending money is bad, but don’t overspend it. Make sure your financial planning (investments& savings, insurances, health & dental coverages) is under control. Rather than spending it for short-term pleasure, you might want to spend it in such a way that will create long-term value. Rebuild your relationship with the people you care, perhaps, a mini-family trip, or take your family to a nice restaurant, so everyone could have an enjoyable time.