Well if you are like me you might have just gotten a raise that starts in the New Year. So I’m currently debating what to do with that little extra on each pay cheque so it doesn’t disappear into my monthly spending. Here are a few ideas along that line.
- After my first paycheque in the New Year I’m going to compare my last regular paycheque before I maxed out CPP/EI and transfer the difference between the amounts into a high interest account while I make up my mind on what do next.
- In the short term we are going to need some extra cash for my parental leave in May, so I’m tempted to just sit on the cash until after that has passed and assess the situation after that is done.
- I could just roll the money over into my monthly contributions to my wife’s spousal RRSP, which would generate a larger tax refund for next year. I would like to start to balance out retirement savings a bit more since I’m currently holding most of that money in my name.
- If you have already got plans to max out your RRSP contributions, you might want to consider paying down your mortgage faster.
- Another option is to top up funding to your child’s RESP accounts to ensure you get the maximum credit from the government.
- The last option is to just move the money into a taxable investment account and buy some dividend paying stock(s) and enroll in a DRIP program. That way your raise is compounding on itself.
I hope that provides a few ideas to everyone. If you have another idea, please leave a comment and share it.