Mar 09, 2021
With the average Canadian tax refund of around $1400, it's tempting to spend it carelessly. However, every financial advisor, banker and mortgage broker will tell you…
STOP TREATING IT LIKE LOOSE CHANGE YOU FOUND IN YOUR OLD JEAN POCKETS
A tax refund is your hard-earned money. You overpaid your income tax deductions throughout the year, and you're now receiving the money back. Instead of spending your refund on a new pair of shoes or a big screen TV, here are some ways to invest in your future.
Invest in your professional development
Take a course online or attend an online conference that will help advance your career. This is a great way to boost your income in the long run. You will always be your best investment.
Do a home renovation
Investing in strategic home improvements can significantly boost your home's value, build your net worth, and transform your living space into the dream home you've always wanted.
Put it towards your mortgage
If you have a mortgage that allows you to make additional lump sum payments without a pre-payment penalty, this might be the perfect opportunity to use that to your advantage. The more you pay now, the less you pay in interest later.
Save for a down payment on a home
Instead of throwing money away on rent each month, start building equity by buying a home. Homeownership increases sustainability and stability. It allows you to invest financially and emotionally in your home and community.
Invest in your retirement
If you haven't started an RRSP, maybe it's time. Your return might not amount to much now, but over the years, your investment will grow.
Whatever you decide to do with your refund, keep in mind how hard you worked for that money, and make sure it's working just as hard for you!