Use Your Car To Get Tax Free Savings

A recent news report said that Canadians are not saving nearly enough money to ensure their continued financial security

. Our pensions are in jeopardy, too. So, in 2008, the Canadian government was worried enough about our savings habits they introduced Tax Free Savings Accounts-TFSAs-to encourage us to save more.

A TFSA allows every Canadian aged 18 years or older to contribute up to $5000 in after tax dollars to a TFSA. You can take the money out again whenever you like-no hidden penalties, taxes, or other limitations, either. And you can contribute on behalf of your spouse or common-law partner, income splitting to benefit the higher wage earner in your home. You can contribute to a TFSA for other family members, too.

A TFSA can help you set money aside for your children's education, a special family vacation, or a down payment on a new home. Because the interest you earn on your deposits isn't taxed, and there are no penalties for taking your money out whenever you want, TFSAs are a great way to save more money faster. TFSAs also do not affect your GST credit, Old Age Security, the Child Tax Credit or other similar federal programs.

And, if you can only save a portion of the $5000 each year, the unused amount rolls over into the next year. So, if you win the lottery next year, you can load up your TFSA with whatever you haven't contributed since TFSAs began in 2008. (You might win; don't be so pessimistic.) Anyway, that might even be as much as $15,000 if you haven't made any contributions so far-a lot of bucks the feds can't touch. And there's no limit-every year, another $5000 gets added to what you're eligible to contribute. Or, put in a bit every month. You don't have to put in the whole $5000 all at once.

Sounds appealing, doesn't it? Or, are you thinking, "Nice idea, but where will I ever get that kind of cash"? Think your car-or truck-or any other vehicle you own that's under eight years old. You can apply for a car title loan and use your vehicle as collateral. Even if you have bad credit or a bankruptcy in your credit history, because your car is your collateral against the loan, odds are you'll get the loan since it's secured. You get to keep your car, and get a wad of cash, possibly as much as 40% of the wholesale value of your vehicle.

That's a good start on a TFSA. Think about those things you want, like a down payment for a new home, something really special for yourself, or maybe a family vacation. Use a car title loan to get you the cash to jumpstart your savings for that extra special purchase.

Don't wait to see if you can make life better for yourself. Apply for a car title loan today. It's a simple form you fill out online. And you'll hear back quickly, usually in less than one day. Don't wait; your Tax Free Savings Account is waiting for you.

by: Molly Wider

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