It’s that time of year when tax refunds start to arrive. And TD Bank has come up with a list of smart ways to use any money the tax department may send your way.
Topping the list is pay down high interest debt. That means credit cards followed by a line of credit. For those carrying student loans, paying them down might be a good idea.
Next on their list of best uses for a tax refund is to make a lump-sum payment on a mortgage. Depending on the type of mortgage you have there may be some rules regarding extra payments but most carry some sort of provision to allow for at least one additional contribution.
While the temptation to spend a refund on something fun is always there, the bank suggests putting it away in a savings account may have a more long lasting impact.
Fourth, TD suggests investing it. Perhaps contributing to an RRSP or TFSA right now rather than waiting until the end of the year.
And finally…invest in yourself. Perhaps some training or professional development.
