3 Things to Do with His Tax Return to Improve Your Finances
Spring does not only bring great weather, it is also the tax return season. However, many people are tempted go shopping after they get their money back, but it is also an opportunity to turn around its finances. Here are 5 effective tips to get off to a good start this year with your tax return.
1. Pay Off Your Debts
Deciding to delay the payment of your debts will simply to make you poorer. After all, with high interest rates, it's better to pay back your credit card, car loan or mortgage as soon as you can so do not wait any longer and act now.
2. Deposit Your Money in Registered Savings Accounts
If you have children, it could be very beneficial to pay a contribution into their Registered Education Savings Plan (RESP). This is a great way to save enough money for your children's education, since that for every dollar contributed, the federal and provincial governments commit to add another 30%. Consider contributing to your Registered Retirement Savings Plan (RRSP) that will allow you to claim another tax refund next year or your Tax-Free Savings Account (TFSA) to generate income nontaxable investment.
3. Start Renovating
Although this is a long-term investment, renovations could not only refresh the design of your home, it can also qualify for the RénoVert tax credit and let you get up to 20% for your next tax return. In addition, you will be able to increase the resale value of your property. All you need to do is to consider the rooms that can be the most profitable such as the kitchen or the bathroom.
Finally, we invite you to check out our latest articles to discover more practical tips to help you get your money back and maximize your savings. Also know that we will be happy to guide you through your financial problems and personal debts. Contact us.