So in a couple of weeks I’ll be getting my income tax cheque and I can’t stop thinking of ways to spend—or save—it.
Here are some smart things to do with your return.
· PAY OFF STUDENT DEBT!!!
We all have it—lets be honest—so the smartest thing would be to pay off some debt, especially if you have a student line of credit, or a racked-up Visa bill, because those have high interest rates.
· Open a RRSP (Registered Retirement Savings Plan) or savings account.
Saving money is always a good thing so open an RRSP or savings account with it for future plans. I had an RRSP through my previous job and put over $800 in it, and the company matched my contribution. I had my RRSPs paid out because I got a new job, but I wish I had transferred it into another RRSP. Typically, with most RRSPs, you can cash the money—tax free—if you buy a house, or of course, retire.
· Donate to charity
Give something to the charity of your choice! I think giving helps build good character, and, helps someone who needs the money most. I’m not suggesting you donate your whole return. I’m saying donate an amount you see fit to a cause you care about—show your generous side.
· Vacation?
I don’t know if I should consider this smart or not… but for the past three years or so, I spent my tax return on a trip--Jamaica, Cuba, Florida, Minneapolis, etc! Considering I didn’t have any student debt till this year, I would say it was a semi-smart move. But this year I should really use the money to pay off debt.
What are you going to do with your tax return? Do you have to pay? Did you break even?
-T
BANK ACCOUNT: $410.20
Here are some smart things to do with your return.
· PAY OFF STUDENT DEBT!!!
We all have it—lets be honest—so the smartest thing would be to pay off some debt, especially if you have a student line of credit, or a racked-up Visa bill, because those have high interest rates.
· Open a RRSP (Registered Retirement Savings Plan) or savings account.
Saving money is always a good thing so open an RRSP or savings account with it for future plans. I had an RRSP through my previous job and put over $800 in it, and the company matched my contribution. I had my RRSPs paid out because I got a new job, but I wish I had transferred it into another RRSP. Typically, with most RRSPs, you can cash the money—tax free—if you buy a house, or of course, retire.
· Donate to charity
Give something to the charity of your choice! I think giving helps build good character, and, helps someone who needs the money most. I’m not suggesting you donate your whole return. I’m saying donate an amount you see fit to a cause you care about—show your generous side.
· Vacation?
I don’t know if I should consider this smart or not… but for the past three years or so, I spent my tax return on a trip--Jamaica, Cuba, Florida, Minneapolis, etc! Considering I didn’t have any student debt till this year, I would say it was a semi-smart move. But this year I should really use the money to pay off debt.
What are you going to do with your tax return? Do you have to pay? Did you break even?
-T
BANK ACCOUNT: $410.20