Emotional Purchases Before A Tax Increase
Financial Management

Emotional Purchases Before A Tax Increase

Sunny drone shot

It’s kind of amazing to see the lengths that some people are going to in an effort to save some money as a result of a new tax that will be introduced here called the HST. The biggest impact it will have I think is on certain grocery items as everything that was normally only subjected to a 5% tax will now be 12%. Some people are actually stocking up in extreme ways because of this.

For example, buying hundreds of dollars in items as if you are buying half a year’s worth of goods. In my opinion that is a little bit of an emotional reaction and doesn’t help in the long term I’d say. Like with this I would think if you truly want to save money then maybe it’s time to invest in some tools and resources that would allow you to make your own items.

It’s too easy to waste more money than intended if you allow yourself to purchase things emotionally in this case just because it sounds right initially. Expect to see a ton of stores too saying how you need to shop from them now before the tax increase comes. Housing will probably be a real tricky one as apparently new houses over about $400,000 or so will be subjected to this new tax. I’m sure not everyone can just whip out an extra six figure in their bank to buy a home too.

Like most things it’s all about adapting to the situation. While it may be a bad situation for many having to pay more it can also be an opportunity for you to rethink your finances and the type of things you buy that aren’t really necessary I’d say.


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