In this era, when everybody is engaged in obtaining money and saving it for the emergency, the government also present ideas to save money. Although the people remain least bothered about the payment of taxes which are being charged against the services which includes education, protection by the police department, construction and maintenance of the highway and buildings, health programs, welfare programs and much more. Taxes fulfils the major chunk of income of the government which are usually been taken as for granted by the people till the time they do not realize the role of government when they see non-collected garbage boxes, malfunctioned traffic lights etc. On the other hand, the government also offers saving options for its people.
Buying government bonds with the aim of saving money for the long term is an amazing idea in itself. It seems like an idea from the ancient people but seems to be the best out of all. Although this technique for saving money consumes a lot of time and the money remains invested for a long span to be utilized in future. However, one can withdraw the money in between if the need be, against its current price; yet, the preference has been given to get the money after the maturity period to enjoy the complete benefits.
Want to opt for tax-free savings?
It remains a dream for the people situated locally around the world to avail the benefits of the tax-free savings but sigh! Not everyone gets such an opportunity. The tax-free savings account (TFSA) allow you to enjoy an interest on your savings which is tax-free and you do not even have to pay a penny as tax even at the time of withdrawing money from the TFSA. The TFSA is a great step, introduced by the government, providing people with an opportunity to keep their savings.
Save from your property tax
Saving from paying tax seems interesting, isn’t it? One shall always be responsible enough to pay the taxes but meanwhile, should be aware of the amount of the tax to be paid. If the value of your property has gone down so will the amount of your tax will too. Thus, if you observe that the amount of the tax has reduced in a particular situation, one shall ask for a re-assessment of the tax to be paid.
Appoint a taxation expert
If you run a business whether small or massive and have not appointed any taxation expert then you might be paying much more tax than you are required to pay. Paying salary to a professional accountant would be much lesser than the taxes to be paid to the government. This officer can save much of your tax and if you want to check the difference; do hire the expert and compare your tax payments before and after his hiring.
Take measures for tax refund
Your tax advisor will assist you the best in this regard. However, if you are obliged to pay less amount of tax, you are probably going to be the entitled for a tax refund. Hence, in order to qualify for a tax refund, one can make their contributions to the Registered Retirement Savings Plan (RRSP) or by offering money in the charity. These are the two adequate ways to show up as a bearer of less amount of tax to be paid. Other than manually doing all of it, the automated system in which the charity and contribution to the RRSP are being automatically deducted from bank accounts can be highly convenient and suitable.
Short term and lesser risk investments
The government also offers opportunities for the people who are not willing to opt for the funds which carry high risks. Money market funds are the most appropriate investment for such people as they offer investments in short term securities and also carries less risk as compared to other securities.
Investment in mutual funds
The mutual fund companies allow the shareholders to buy shares in the mutual funds and each share is the representation of the possession of the investors. The mutual fund basically works on the idea of collecting investment from the investors and invest their money further in the securities, after thorough market research. Providing the people with relaxation from thinking about where to make the investment which is actually the most troublesome decision to be taken. Hence, the core reason for a person to invest in mutual funds is the professional management of the funds.
Owing loan to the government
One can owe a loan to the government by buying Treasury securities. These securities are mainly the debts being issued by the government to gather money from the people who are willing to invest their money for a mutually agreed time frame. The government return the lent money (face value) after the set time. “Treasury bills, treasury notes, treasury bonds, floating rate notes (FRNs), Treasury Inflation-Protected Securities (TIPS)” are few forms of these loans which differ due to their maturity periods and rates of interest as well.
Apart from this one shall give a great amount of consideration to the idea of saving with the government. As, saving money with oneself is the biggest hurdle in the way of having even a small amount of savings. The people who were willing to save but were unable to take the initiative must have got good ideas to take a start up with. Also, remember the saying, “Save money and money will save you.”