3 Long Term Financial Actions You Can Take Today

Happy Monday Everybody! We’ve started to see things slowly reopen but that doesn’t mean we are stopping with our blog posts, we’ll keep delivering this schedule of posts to you until things are a bit more normal.

Today, we wanted to share 3 things you can do today that will impact your financial situation in the future

Contribute to your TFSA

If you haven’t already contributed to your TFSA or haven’t set up a TFSA yet, this is a great time to do it! For those of us fortunate enough to be working from home, you’ve seen a reduction in your weekly expenses – transportation costs, meals out, beauty treatments, gym membership etc. – now is the perfect time to take what you’d normally spend in those areas and put that money into your TFSA.

This years contribution limit is $6000.

If you haven’t contributed yet but have been eligible for a TFSA since 2009 you have a total of $69500 you can contribute.

Contribute to your RRSP

If your TSFA is full or you have an RRSP going but not a TFSA yet (also set up at TFSA ASAP so you can save even more!), we highly recommend contributing to your RRSP if you have the capability.

Save for Taxes

If you are receiving the CERB or the CESB, this is still taxable income. Depending on your income for 2020 you will be taxed accordingly, so as you would any other year prepare to pay taxes on this money just like any other income.

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