Death and Taxes

It’s that time of year again..tax season.

As much as we dread this annual chore, we sometimes look forward to receiving a serendipitous gift from above - the almighty tax refund.

So now what?

Suddenly we are feeling pretty darn flush and all kinds of crazy ideas start to appear.

Should we go to Mexico?

Should we buy a new car?

Should we contribute to our RRSP?

Should we pay off the credit card?

There are a ton of choices to make and everyone has different circumstances that will drive their decision-making process in a unique direction. I don't know your personal financial situation, but I am going to tell you what I would do, and why.

INVEST

I don't have the space to fully make the case for investing. It is, by far, the most advantageous thing you can do with money. I am convinced that there is no other option for me.

Mental health - By investing you are contribution to your mental health buy improving your circumstances. Since we tend to equate money with survival, the more money you have, the more "safe" you feel. Therefore money in your possession just feels good.
Long Term perspective - Investing money instead of spending it creates the habit of thinking long term, This is the true way to wealth. You will make better decisions if you consider your future instead of your present,.
You are richer - If you have more money today than you had yesterday you are richer than you were., We all want to be richer. Here is your chance. Invest that tax-refund.
Potential returns - your money is a great servant but a horrible master. If you put your money to work earning you more money you are even richer than yesterday because you now EARN more. Increasing your income, either through dividends or capital gains is a way to give yourself a raise, without having to work any harder.

I could go on, and I often do. My latest book "The GAP" gives you 100 pages of this. I feel it will convince you that you can become rich if you choose. It removes the world "impossible" from your financial plan and gives you the tools and emotional hooks to drive you forward financially.

I also have written a few articles that answer the question,

“Should I pay of debt or invest?"

I suggest you give them a quick read and see for yourself what makes sense and what doesn't.

I would never assume that investing is the right move for everyone, as there are an infinite number of unique circumstances that may logically necessitate a different approach. Do what you must. My work is all about convincing people to take control of their money and if you are doing that then, awesome, please ignore my suggestions.

If you aren't sure what to do, please take the time to educate yourself. There are a ton of resources out there to learn about investing and building wealth. My books and courses can help, as well as the work of other terrific teachers. I encourage you to make an informed decision about your extra money.

In the meantime, you can just put your tax-refund in the bank until you decide what to do with it. There is no rush. You can enjoy the mental-health benefits of "money in the bank" while you are learning!

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