To avoid over spending and accumulating debt over Christmas, stop using credit cards and stick to cash. Start by saving for Christmas gifts throughout the year. When your gift fund runs out, your shopping is done.
No document on tax savings would be complete without mentioning the Canadian classic - the RRSP.
Use an RRSP Loan to Reduce Your Taxes
The program allows you to invest before-tax dollars, as opposed to after-tax dollars, into your personal retirement fund. Therefore, if you are in a 40% tax bracket, this means Revenue Canada will give you a tax refund equal to 40% of your RRSP contribution. Other methods of tax savings should always be weighed against what you could save by contributing to your RRSP. This is especially true if building up that fund is a priority.
Tips To Turn Bad Debt Into Good Debt
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Convert Mortgage Debt into Tax Free Debt Using an Existing Asset
Convert Mortgage Debt into Tax-Free Debt Over Time
Transfer Mortgage Debt to a Business or Rental Property
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