Beginning a new year also means looking at what changes you may want to make, and often these are focused around personal finances. There are several changes that you can consider making, but you want to make those that are going to have a positive impact on your financial situation.
You may be considering a new budget.
You may be thinking of down scaling by moving some of your assets.
You may be thinking of taking on a second job to help with the expenses.
These are just a few of the thoughts that you are giving to help turn what may be a less than ideal financial situation around. What you have to consider at the same time is what if any type of impact they are going to have on your tax situation.
It used to be that a lot of people didn’t include any consideration to their tax situation when thinking about their finances. This is rapidly changing as so many people are tired of what they feel as being taxed to death. They are now taking more steps to not only educate themselves on the tax basics but how they can make better financial decisions that will have a positive impact on their tax situation as well.
Let’s take a closer look at education regarding your taxes. This doesn’t mean you have to become an expert. What can help is simply keeping up with what potential changes the government is considering and how they could affect you personally if they come into play.
With a new year upon us then we should be interested in what is in the working for the upcoming year. Presently there are about 4 major events that you will want to keep an eye on.
Tax Free Savings:
If you are going to include savings into your new budget, then you may want to consider a tax free savings account. If you do, then follow closely what could take place this year. You may be able to count on the promise that the Prime Minister made four years ago. This is where he promised to double up on the tax free savings account, meaning the limit will be increased from $5,500. To $11,000. You won’t know for sure if this will be a reality until the spring budget is released.
The fall election:
If the increase comes into effect you may be well pleased, but it could be short lived because if the Conservatives are pushed out in the fall election, then along with them could be the tax free savings increase. Although there is some speculation that the Ontario Retirement Savings Plan that is slated to begin in 2017 would instead become part of the Canada Pension Plan.
The effects of the economy:
Whenever we get to enjoy a price drop it is something we all think is great. Just like we are currently experiencing with the lower gas rates. It is important to keep in mind the big picture here and realize that these big oil producing companies employ a lot of people, and help to keep our banks in business. So there could be some negative side effects to these current savings that we are enjoying.
Is it a good time to buy a house?
This may be another thought you are toying with if you are presently in the rental mode. Perhaps you are sick of paying someone else when you could be investing in your asset. It can be a scary thought though, because you have to consider more than the price. You have to consider the interest rates and the future of the economy, and what type of effect it can have on your house buying responsibilities if it were to spiral.
There is a lot to think about when it comes to your finances for the next year, but the start to success is to realize that you need to take control of your finances, and not adopt the attitude of “let the chips fall where they may”.
The good news is that you don’t have to go it alone when thinking about your financial situation. Having a good accountant working for you will help you tackle many different types of financial issues and concerns.
