5 GREAT things to do with YOUR Tax Refund!

One thing I get asked a lot is, “what should I do with my tax refund?” The answer is always the same, “Give it a job.” All I really mean is decide what your tax refund will be doing for you before you get it in your hot little hands. Because if you wait until it’s in the bank, you’ll blow through it before you even realize what’s happened.

5 GREAT things to do with YOUR Tax Refund!

  1. Leave it in your all-in-one account. This way it pays down your debt, saving you interest for now, but it’s not gone forever if you have an emergency or want to invest it later.
  2. Top Up Your Fun Money. Yes, I said spend it! The way I’d suggest you spend it is to top up your fun money, or vacation fund. Make sure you get to enjoy spending it rather than letting it just evaporate from your account. Separate it and plan something specific with it.
  3. Save It. Again, separate it, top up your new car fund or put it towards another short-term savings goal.
  4. TFSA. Maybe you are still in love with the idea of RRSPs and don’t have the extra cash flow to do TFSAs as well, then use your refund to build your TFSA.
  5. Let the kids spend it. Not literally of course. Call a family meeting and have the kids come up with a way to use the money (or a portion of) in a way the whole family can enjoy. They have to argue their points and do the research on the cost of their idea, and everyone votes via secret ballot. No matter what happens, the kids learn something about money and gain perspective, and you all have fun!

 

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