Tax Season. Quite possibly one of the happiest times of the year for Buy Boss’rs. Buy Bossr’s? Buy Boss’r’s? “B’u’y B’o’s’s’r’s’?” Any high school graduates that can help me with that? 🙂 In return I’ll let you take a look at my taxes.
Back on subject, … the December to March tax season is when we really are able to leverage all the efforts we put forward throughout the year to save money, and live more efficiently.
All the hard work and extra effort we put in at work, with an eye to the future, really pays dividends.
A Seed Today, A Tree Tomorrow
Realizing this really helps one have a more positive outlook on government and taxes, when they all work in your favour. A positive outlook really is the major benefit of living the Buy Boss’r lifestyle.
Having a firm grasp on your finances, and a measure of control over your life pays back in better health, better job performance, and a powerful ability to smooth over any rough spots or setbacks.
Lose a week or two of work? No issue, I’m only spending 40% of my pay anyways, and the break is going to give me time to finish that set of sweet bunk beds for the kids(I still need to design a cool bunk bed for adults).
Car breaks down? Well, I do most travel on my ultra-dependable bike. Living within 15 kms of everything important to me makes the car only an issue if we are travelling out of town. And because I’ve adopted the Al Bundy Maneuver I always have an emergency stash in my TFSA if needed.
Love and Marriage
The Al Bundy Maneuver is the TLDR answer to the $25,000 question. If your not familiar with it check out the article using the hyperlink above. I thought I’d go into it in a little more detail today, and help you fellow Buy Bossr’s plan ahead for this year, as it truly is a year long strategy.
So, usually each year I make a somewhere north of $75,000. Tax credits and write offs resulting from having two little bundles of bliss and a SAH (Stay-at-Home) wife/mother bring my income down into the 60k range for tax purposes.
But, as we now know, we need to be much closer to 31k for maximum returns. So I take 30-35k from my TFSA and put it into a RRSP account. This gives me a tax return of about 10-13k. So where does the other 14k come from?
Let’s Break it Down, It’s Hammer Time!
Well it looks like this:
- $900/yr in Gst Cheques
- $11.5k/yr in Child Care Benefits
- $650/yr in Canada Workers Benefit
- $660/yr in BC Early Child Benefit (this is going up to $200/month in October)
- $400/yr in BC Climate Tax Rebates
This comes out to another $14,100 in extra returns. Really, it’s not too bad of pay for merrily living a simpler, all around more enjoyable way of life! All of this gets thrown into the TFSA to grow as we wait for next year.
The couple thousand a month we save, effectively paying ourselves for gleefully living within our means, gets thrown in as well. This makes it possible to rinse and repeat for next year’s taxes.
It’s a snowball of love! Money mixed in with the happiness one naturally gets by simplifying, growing each year. The effects of compound interest amplify this effort, growing our Honey Pot, and putting the reality of being a King B in sight.
So, how did you do with your taxes this tax year? Were any of you able to employ this method? What plans to you have for the coming year(s)? For my next project, I’m looking into the feasibility of a solar PV set-up for our house, and potentially an electric car to match it.
“The heaviest penalty for declining to rule is to be ruled by someone inferior to yourself.”
― Plato, The Republic