We always talk about all of the ways you can save when it comes to your taxes, but what happens once you get your tax refund? Well, many of us see it as extra income and go out and spend it on anything from a kitchen reno to a new spring wardrobe to a night on the town. This year, we are challenging our readers to turn your refund into tax savings!
First and foremost, save it!
This seems like common sense, but with the average Canadian tax refund being around $1600, how many of us can actually say that we don’t need that money to plump up our savings account? Add it to your existing savings account or start an emergency savings account and start adding money to it regularly because you never know what the future will hold.
Many people choose to put their tax refund someone that is harder to access, like their investments. Whether you have a TFSA, RRSP or both, use this money to start maxing out your contributions, which in turn will help you out next tax season. A win-sin situation. Your financial advisor can help you make the best decision for your situation.