Oh yeah! RRSP time is over, you filled up your tax report and you are expecting that little brown envelop every single day. Some of use already got it and I hope you didn’t spend it yet. You could go on vacation for two weeks or even buy something with long term value as a 50 inches plasma TV… Or you can think about the future. This sucks! Yeah, well you might be surprise of what you can get out of some sacrifices.

Were you late last February for your RRSP contribution? Don’t get caught this year and put your tax return in RRSP right away. By doing so, you will get a bigger tax return on the subsequent year and you won’t have to meet your banker in a hurry on February 28^th. Over 20 years, a $1,000 deposit with 8% return will make a good $45,000. The government will technically pay a part of your retirement plan.

If you have an outstanding RRSP loan or another debt at high interest rate, you should pay it off. Paying non tax deductible interest is definitely not good for your financial health. By paying off your debt, you will feel relieved and will benefit from a bigger monthly cash flow.

Another way to spend your tax return would be by investing. Use your tax return to increase your investment portfolio or make an additional payment through your Smith Manoeuvre. Then, the money will be invested and the interest related to it will be tax deductible. You definitely need to play around in order to make money differently.

Think about children’s education. Each province is planning on increase education fees for college and university. Even Quebec! Giving your kids the tools to make their dream happens is the best gift you can ever give them. Invest this money through a RESP and get more money from the government.

All those aspects are already covered and you want to go to Cancun? Sorry not yet. You should consider renovating your property. Finishing a basement, changing color in your bedroom or getting rid of your ugly bath tub will improve your property value while increasing your day to day comfort.

Receiving extra money is always fun but it is up to you to make it even more fun. You saw how $1,000 invested every year can become 45K. That’s almost your brand new BMW for your retirement!

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