Tax Refund: To Spend or Not To Spend?

Did you get a tax refund this year, or are you expecting one?

Most people who get a tax refund immediately spend it.  They consider it to be like a windfall: free money.  It’s not.  The only reason you got a tax refund is because you paid too much tax last year!  The government is simply giving you back your money.

Instead of spending your tax refund, make a plan to spend it wisely.  Perhaps take half of your refund and put in a savings account as your “emergency fund”, or invest it in your RRSP.  Use the other half to pay down debt, which will save you money in the long run.

Don’t just spend your tax refund without thinking: make a plan, and use your money wisely.

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