Planning Taxes? Is that a new concept? People often don’t give this much thought. There are two reasons why tax planning is important.
First, financial success is about making money and keeping as much of it as you can. The amount of taxes you pay is not simply inevitable. Tax planning involves choosing investment vehicles and investments that help you keep more of your money. Making effective use of RSP’s, TFSA’s and choosing tax favourable investments should be part of your plan.
Secondly, charitable giving is part of tax planning. Financially, they should go hand in hand. We know that taxes are necessary and provide services for us. Why do we talk about re-directing taxes to charity? Why is charitable giving a Win/Win for everyone? I came across a few words written by Lamar Alexander that explains this best. Alexander says,
“Government can explore space, defend our country, keep the dollar sound, protect the environment, help pay for health care, and protect individual rights. But…we have come to realize that government can’t solve the moral problems that worry us the most today. Government may replace income by offering food stamps, but government is not so good at helping someone get on his or her feet and stay there, to find and keep a job, to reject drugs, to develop willpower, or to love a child.”Lamar Alexander
Charity may meet the needs in our communities more effectively than the government. When we give mindfully, we direct our money to causes we care about, that reflect our values. Rather than giving and simply applying the tax deduction down the road, plan this year. Decide what causes you will support and consider the tax savings. Perhaps the tax savings mean that you can help out a bit more.
Join the mindful and create a better world for yourself, your family and your community.
Imagine what it would be like if we all became mindful. Mindful Money Management makes that happen when you spend, invest, and donate to create a better world.
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I’d love to learn about the impact you plan to make. Please feel free to contact me at [email protected] with your comments and ask to be included on the guestlist for my next Mindful Money Management Zoom Workshop. See you there!