taxes

What to do with your tax refund

We did it! We survived personal tax season. The most exciting part about tax season is getting that tax refund - am I right? While receiving a refund may feel like a bonus that we want to splurge, is it really a bonus if it was your own hard-earned money all along? Here are five financially smart ways to use that refund:

  1. Pay down debt - start with highest interest or your most stressful debt (what keeps you up at night)

  2. Invest - don’t underestimate the power of compounding, start now!

  3. Create a rainy day fund - work towards having three to six months worth of your typical living expenses 

  4. Pay it forward - give to your favourite charity or share with someone in need

  5. Have fun with it - save towards a much needed vacation

Can’t decide where to put your money? Don’t stress! With proper planning, you can do all 5! Always remember that money takes time, so don’t wait until you’ve paid off all your debt to start saving for your retirement or rainy day fund. The key to building wealth is to start today!