Episode 111 Transcript – Forced savings account for revenue Canada

You’re live here with Jessi Johnson. Today I went into CIBC and I did a few things I’d like to discuss with you. I took my personal banking card and my small business banking card and merged them into one. Now I have my corporate account and the funds available for direct transfers which is great. It makes my life so much easier. I also have full access to the standard email and money transfers on my personal banking. That’s the first thing I did. We’re now going to get rid of this card because the new card has this little chip on it. What that is, it’s not only a security feature but a convenience feature as well. When I make a payment and want to buy something through Interac instead of having to swipe the card and cross my fingers and hope it will work, cards get demagnetized where these new chips don’t, now I just simply insert the chip, do my PIN and do the transaction as normal. It’s a lot easier to process that way. One of the things I want to talk about today is not only just simply merging into one card because no big deal but I have my account set up a certain way where I have my business and personal accounts. One of the things I’m doing is I have a forced savings account. If you’re self employed this might be very relevant to you. Starting off first, for self employed applicants, you going to have be paying your taxes on an annual basis. Some people will put money in a savings account, others like myself usually wait until tax time comes and have a heart attack when I see how much I have to pay and than have to be a little tight for a couple of months. What I’ve actually done is I’ve switched this up, I’ve got a forced savings account where I actually go ahead and pull money out of my personal operating account and put that money into a forced savings account. It’s very easy to set up. It’s a deposit only account so I can’t pull the money out. Now when I do my taxes come next spring I’ll have a whack of money sitting there waiting for me. Just a suggestion for the self employed applicants out there or basically anyone who has tax write-offs and has to pay tax at the end of the year. I’ll leave it at that. I have a couple more things that I’m going to talk about in the future with forced savings accounts but for now you can reach me at www.firsthomeinfo.ca or www.jessijohnson.ca. Remember to own your life. Have a good day.