Are you getting a refund on your tax return this year? If so have you thought about what you will do with the money?
Let me set the perspective for you. This money is not found or even fun money, like the toonie in the couch cushions or the twenty you forgot in your pants pocket. No, your tax refund is the government paying back your loan to them for the year. Therefore, this money has purpose.
Here are 3 actions I recommend you take with your refund. They are in order of importance:
1. Start or add to your emergency fund. In these times, I would advise at least 3 months of living expenses.
2. Pay down or eliminate your high interest debt, such as lines of credits or credit cards. And resolve afterwards not to carry a balance on them.
3. Open a TFSA or add to your RRSP.
4. If you have done all of the above treat yourself or your family.
Questions and comments are always welcome