Spring Cleaning For Your Finances
May has arrived, and finally with it spring has sprung here in Calgary. Along with the landscape coming back to life, it’s at this time of year that many Canadians carry out their annual spring cleaning rituals. With taxes done now is also a great time to clean out your financial closet. Spending an hour or two over the next month can yield great results (and save you a bunch of cash).
Below are a few of our favourites suggestions for financial spring cleaning:
- Save your tax refund. Sure it can be tempting to buy something nice, but resist the urge! Invest the money instead, your future self will thank you!
- Check out your available TFSA and RRSP contribution room using the CRA’s My Account feature. How can you adjust your spending habits this year to increase your savings rate? Increasing your savings rate by even a few percent can greatly reduce the number of years you’ll have to work! Just remember that the contribution room listed on the CRA’s website is as of the end of last year, so deduct any contributions you’ve already made this year.
- Review the last 3-6 months of your spending (to make it quick and easy use a service like Mint or You Need a Budget). Where can you cut back to save a little more? What monthly subscriptions are you not actually using and can be cancelled?
- If you are making RRSP contributions outside of an employer plan, have regular childcare expenses or are making spousal support payments, complete form T1213 and reduce the amount of taxes you pay each pay cheque. Better to keep the money now than get a refund a year down the road!
- Take a look at the fees you are paying on your investments. If you are paying more than 1%, you are paying too much and are potentially costing yourself tens or hundreds of thousands of dollars in missed returns. If you are having a tough time figuring out how much you’re paying, let us know and we’ll help you out. Also, don’t feel bad, most banks and fund companies don’t make it easy to figure out the total fees.
The next rainy afternoon or evening, take some time to complete a few of these suggestions and then enjoy reaping the rewards of your financial garden growing!
If you’d like some additional support with your financial spring cleaning, setup an initial connection meeting with us and learn more about how Finovo can help you get better control of your finances.
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