It’s really amazing that another year-end is upon us. Living just keeps happening and time flies.
Before you know it, we might be at a stage where we’ll need a little financial cushion to help us along. Hopefully over the years, you’ve been socking away a little savings regularly and that it has grown nicely and steadily for you.
Here again is a reminder to help you along in maximizing your savings and minimizing your taxes along the way.
- Tax free savings account (TFSA) – building a tax free nest egg without worrying about future tax liability on the income.
- Registered Retirement Savings Plan (RRSP) – building a tax deferred retirement nest egg, saving you taxes today and hopefully to pay tax in the future when you income is taxed at a lower rate.
- Regular withdrawal to invest – getting into the habit of forced savings by withdrawing a set amount each payday. Investing those savings into tax efficient investments will help maximize your savings. The compounding effect of regular savings can also have a pleasant surprise over time.
- Spend less. Think twice before buying will often result in a bigger nest egg. Remember, this is often from after tax money so your saving has even more bang for the buck.
It’s often said that having family and friends is the most important things to have during the holidays. This is so true, and you don’t need to spend a huge sum to have a memorable and wonderful time.
Merry Christmas and Happy New Year!