This post was sponsored by TD but, as always, opinions are my own.
It is almost that time of year again.
Tax season, whether you love it or hate it, is going to be here soon and we all need to file. Hopefully you have been super organized all year long and the process goes very smoothly for you. If you are lucky and get a return back then you will be facing the dilemma many of us face after filing.
What to do with your refund.
I know the feeling of the impulse to go out and splurge on something big. Something you normally would not buy or could not afford. You have been so disciplined all year and now you have this lump sum of money outside of your monthly budget in your hands. The temptation is lingering and growing, calling to you to spend, but don’t give in. The rush and excitement may have you out on a shopping spree or planning a getaway from this whirlwind of a winter we have, but then what? Personally I find every time I spend outside of my monthly budget I regret it weeks, or maybe months later. I always end up needing that money later on for something unexpected.
As we all know life happens, emergencies happen, often we are not prepared. Saving your tax return will have you prepared for these rainy days.
What can you do?
Consider saving or investing your tax refund in a Tax-Free Savings Account (TFSA). TFSAs from TD are great for long or short-term goals because your savings can grow faster when you don’t have to pay tax on investment income.
Instead of splurging, you can save towards that trip or have a little nest egg in case you require it. Many people live pay cheque to pay cheque and the feeling of wanting to spend it all at once is natural. But the stress of not being prepared when your finances change will cause stress.
Having had one child already go off to college the thought of my two teens leaving shortly scares me. I know all too well how, no matter how well they budget, unexpected fees will pop up. I want to be able to help them with these unforeseen expenses. I am saving my tax return this year to help my boys with books, random supplies and any other unexpected expenses they may not be prepared for.
Having that money put aside will make me feel more prepared and stress-free. I will gladly help them out as they transition from being kids to facing the adult world and finding their way.
Benefits of Tax-Free Savings Account from TD
– You have the ability to earn more with a tax-free investment because your savings grow tax free.
– TD can help you find the right tax -free savings solutions for every type of investor from high interest savings accounts, toterm deposits and mutual funds
If life carries on as per normal and there are no hiccups along the way, you will have your tax return growing and accessible for whatever you want to spend it on in the future. Imagine if you have multiple years saved? You will be ahead of the game!
Before you file your taxes this year, be sure to check out the Tax-Free Savings Accounts from TD for more information.
What do you plan on doing with your tax return? Is there something you would like to save for?
we do our taxes right away at the end of feb when we get our t4’s so have already gotten our refund and I paid off a credit card
We usually spend our returns on something everyone in the family will enjoy. We sometimes keep the money and add it to our savings towards a “grand” vacation.
It depends on the year what we do with our returns! This year we paid off some bills and put some money into savings! Next year I hope to use ours for a family vacation!
We have had to pay the last couple of years. When we got money back, we usually put that towards vacation.
For right now, I will be dumping all of it into loans. With the interest so high, I cannot wait to pay it off.
Hubby and I always say we are going to spend our return on a vacation, but it always ends up going to bills -_-
I like to use my returns to pay off any bills i have. I always save a little to treat myself.
I know what I want to do with it…I want to spend it, but it is going to go for bills!
Usually we spend such returns on a vacation every year. But I have been insisting my husband that we should invest them in to savings to make sure it could help us when we need them so badly.