What should you do with your tax refund this year?
Now that you’ve sorted through your receipts and filed your tax return, it’s time to think about how you’ll use the refund you’re entitled to. So what could you do with that money?
A tax refund is not money dropped from the sky. Rather, it is the excess tax you paid during the year. Even if you have the impression of receiving a gift, this one is actually money that you have earned by working. With your tax refund, you might be able to afford a beach vacation. However, here are some ways to use this money to improve your net worth (while having a little fun).

1. Pay off your debts

Debts are not all bad, but some are very expensive in interest. Consider using your refund to get rid of high-interest credit or loan debt.
If your credit card has an interest rate of 19.99%, that interest is probably costing you more than you can earn by saving or investing in your tax refund. First, to maximize your tax refund, pay off your debts that cost the most in interest.

2. Invest in your future

Do you have any life goals you would like to save for? Maybe you want to retire at 55, go on a vacation, or pay for your children’s education. Investing your tax return will increase your chances of achieving these goals. There are many ways to invest your tax refund:
Contribute to your RRSP. If you have unused contribution room left, investing your tax refund in your RRSP may be a wise choice, as you will get a tax credit. Some employers could even double your contribution, which will give you an excellent return.
If your goal is to pay for your children’s education, you can invest your tax refund in an RESP.

3. Increase your emergency fund

If your monthly budget is tight, what will happen in an emergency, such as your house flooding or you need to replace your car brakes? An emergency fund is used precisely to pay for unforeseen expenses. The sums you add to it will probably allow you to breathe easier later.
Put money into your emergency fund to cover your expenses for three to six months in case of unforeseen circumstances like unemployment or sickness. This way, it will be easier for you to pay your bills until your situation recovers.
Not sure where to put your savings? You could put them into a high interest savings account. But you could also consider putting some of them into Silver Gold Bull.

4. Reduce your mortgage

Using your tax refund to pay part of your mortgage will save a lot of interest, especially if you have several years left to pay your mortgage. Using your tax return to pay down your mortgage each year can shorten your payment term by several years. This enlightened choice will allow you to reduce all the interest to be paid and pay for your residence more quickly!

5. Have fun

Even if you’ve given up on your dream vacation, you can have some fun. For example, you can keep a percentage – say 5% – of your tax return to buy or do something fun or memorable: go to a concert, buy an accessory for your car, go on a family outing, etc. . Enjoy your money – you’ve earned it hard.

Not sure how to file for a tax refund? Family Tax Recovery is the answer.
Most accounting firms will offer to conduct tax reviews for users that can cost thousands of dollars with no guarantee of ever getting a refund. Comparatively, Family Tax Recovery offers an in-depth review of your tax returns for the last 10 years – and if it doesn’t find a refund, you’ll not pay a dime. They strive to help users find tax refund that is rightfully theirs. Refunds, if found, range from several hundred to many thousands of dollars.