Ahhh… New Years resolutions.
I don’t have anything against them, and have been known to make a few every once in a while. I find it easier to stick to my New Year resolutions if I work in a reward for myself. This year my husband has been the one to make a huge New Years resolution and we’ve been able to financial take advantage of that.
My husband smoked for 15 years on and off. It drives me crazy, but it’s his issue not mine. (I have my own, start with “Ch” and ends in “ocolate”). This year, out of the blue he’s decided that he’s going to quit. I was very happy for him and supportive but honestly the first week was awful, then I realized, there’s no real pay off for him.
We decided that with the extra $30 he used to be spending on cigarettes we would now save it for some kind of reward. He’s always wanted to go on vacation and since we have 2 kids, a mortgage and a car payment it’s never quite fit into the budget. I did a little research and we’ve decided to put that money into a TFSA (Tax Free Savings Account). In a nut-shell this savings vehicle allows us to put money away into savings that can then be invested, providing us with a greater return = MAKE MORE MONEY. Any money we make on the account OR any we pull out is not taxable AND does not count as income. Win, Win. It provides us with something that can make more money then our savings account at the bank, and we don’t have to declare the interest earned as income. It’s fantastic.
So, sometime next year we hope to take out some of his New Years resolution money (tax free of course) and go somewhere hot, with sandy beaches. Now if only I could set aside my chocolate money we could retire in 5 years!