​Spending money can go hand-in-hand with saving for your future. The key is to spend your money on items with lasting value and plan your spending with care.

4 investments with lasting value

1. Real estate

If the cost of home ownership — including mortgage, property taxes, repairs and other bills — fits into your budget, owning a home has many advantages:

• It allows you to put money in something that may be worth more over time.
• It may save you money over time. Once you pay off your mortgage, the cost of owning your property goes down.
• It may provide tax advantages. There’s no tax if you sell your main home for more than you paid. And if you make a business of buying and selling real estate, you may be able to treat the money you make as business income. In this case, you’ll pay tax at a lower rate.
• It may create income. If you buy extra property as an investment, you can rent the property to cover the loan and interest. You’ll have to pay tax on the income, but you can deduct your costs, including the interest on the mortgage. However, when you sell, you’ll have to pay tax on any gains.

2. Insurance

Life insurance, health insurance and disability insurance can protect you from later loss of income. If your work provides you with insurance, you may choose to buy some additional insurance on your own for extra protection.

3. Retirement savings

When you stop working, you may live mostly on your savings. Saving for retirement through a Registered Retirement Savings Plan (RRSP) can be a way to boost the income you’ll receive from government plans like Canada Pension Plan (CPP) or a work pension.

4. Education

With the cost of education rising, many students graduate with large amounts of debt. Saving for education can be a way to graduate with less debt. You might consider saving money in a Registered Education Savings Plan, which offers tax breaks and government grants.