Wondering what to do with that income tax refund?
By Nahanni Ackroyd 2022/03/19
Congratulations! Instead of having a tax bill this year, you received a refund. Money in hand or coming soon, you may be wondering about its best use. Here are some ideas:
- Pay down credit card or any other high-interest debt. The sooner you pay that off, the quicker you will be out of debt.
- Deposit to your TFSA (Tax-Free Savings Account) to help save for that expensive item on your wish list or toward your retirement.
- Deposit to your RSP (Retirement Savings Plan) to lower this year’s taxes and set you up for another income tax refund next year.
- Deposit to your RDSP (Registered Disability Savings Plan) and watch that plan grow fast for your future.
- Start a savings program for your grandchildren for their education.
- Pay the property taxes on your home.
- Pay it forward by donating to a charity that is doing work you value.
- Take a much-needed vacation, with family, friends, your partner, or as a solo get-a-way.
- Spend it like mad money. It’s been a long couple of years after all!
Finances are like fingerprints; no two people have the exact same pattern of income, expenses, hopes and goals. What we share is that thoughtful planning and follow-through yields the best results. So, when that extra money from a tax refund arrives, you can have a plan for it that fits you!
This article is for informational purposes only; it is not financial advice. If you’d like to explore any of these options and how they work with your financial goals, contact me.