Three Ways to Make More Money as a Student
As a brand new semester begins, many students are asking themselves how to increase their revenues in 2017 in order to plan new projects or pay back last year’s frivolities.
Here are 3 ways to increase your income as a student:
1) Credit Margin
While a credit margin is not truly a revenue, the usage you make of it can be. Some institutions offer students of specific programs (really) advantageous credit terms. This might be helpful if your last trip is still on your VISA, accruing 15% or 20% yearly interest. The boldest among us might even invest the unnecessary credit in order to generate higher returns than their borrowing costs and keep the profit.
*It is worth mentioning that every investment is subject to risks, and that borrowing to invest accentuates theses risks. This strategy is not recommended for all and should only be implemented on a long term perspective. A needs and situation assessment are essential.
2) Financial Assistance for Educational Expenses
Yes, the infamous Loans & Bursaries Program! Probably the easiest way for a student to make a living… if you qualify. Many of you will not be eligible because your parents make too much money. Is there a way around this you ask? There sure is, and make sure to tune in to our webcast L’argent n’a pas de couleur (in French) this Friday on our Facebook page to learn how!
3) Registered Retirement Savings Plan (RRSP)
How can a retirement plan improve your finances as a student? Few people know about this, but it is possible for a full-time student to “borrow” funds from its RRSP without penalty as long as it is fully refunded within the next 10 years. The issue for most students however, is that they have yet to open a RRSP and are lacking the funds to do so.
Is there a way to create that money? Not really, but you can borrow it. A RRSP-loan consists of borrowing money to invest in your RRSP. While creating and borrowing money are two distinct actions, the tax return you receive will indeed have been “created”. How much of a tax return are we talking about? Well, as you are allowed to withdraw 10 000$ twice from your RRSP, you could create anywhere between 6 000$ and 10 000$ in tax returns, government subsidies and tax credits. Not bad for money you have not worked for!
We hope this information will prove to be helpful, and we wish all of you health, happiness and success for 2017! As always, feel free to get in touch with us should you have any questions or to determine how you can improve your financial well-being.