Last Minute RRSP Contribution before the Deadline

I thought that today would be a great time to give a quick reminder that March 1^st, is the RRSP contribution deadline for the 2010 tax year. Any RRSP contributions after March 1^st, will only be deductible against your taxable income for the next year, or subsequent years.

If you have been hesitating to make a RRSP contribution, fear not you are not alone. When you think about it, it is easy to see people hesitate to write out a cheque for different reasons, such as whether or not the money would be more beneficial paying down debt, or even your mortgage.

For those who may be on the fence, then you may want to consider taking a leap of faith.

For people who carry debt, it is important to remember that you do not have to become debt free in order to start working towards your future. With a bit of money management, you should be able to pay down your debt, and save for your retirement, letting you be better off in the long run.

What if I do not have much money to put away?

The key here is that you are making RRSP contributions, regardless of what the size of the contribution is. Just like saving, every dollar counts. You just have to be putting away as much as you can afford, and in the end you will be able to build a nice retirement fund.

One thing to consider is that with compound interest at your disposal, you will be able to generate more savings than you may expect when the time comes for you to stop working.

Having said that, the deadline may be approaching us quickly, but it is never too late to make a contribution, no matter what size it may be.

Learn from your mistakes, if you have decided to make a change in your finances then in the new year start making contributions earlier. You may not be able to change what happened in the past year, however with a bit of budgeting you should be able to save more money and put it towards your RRSP.

Do you have any tips for how you saved towards your RRSP?

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