The Wealth Building Academy

Travelling this summer?

I've always said the pink tax is in almost every facet of our society and here is another example of it. Summer Europe trips are popular and with them comes the inevitable price difference between men and women for the same experience: going on a trip.

From transportation, to hostel rates, to booking your flights – it's more than just the dollar value. It's about safety and security. It's about choosing a flight that lands with enough time for you to make to your hostel before the sunsets; something that most men don't have to think about.

I'm curious – what examples from your travels can you comment where you had to pay more just because you were a woman? Drop your experiences in the comments or my DMs

I hear this mistake all the time. Don't let it happen to you!

Did you know there's a key difference between your marginal tax rate and your average tax rate?

Your marginal tax rate is the tax percentage you pay on the next dollar of income you earn. It's determined by the specific tax bracket your income falls into. For example, if you're in a 20% marginal tax bracket, every extra dollar you earn will have 20 cents go towards income tax.

On the other hand, your average tax rate is the total amount of income tax you pay divided by your total taxable income. This gives you an overall picture of the percentage of your income that goes to taxes. It's always lower than but rarely equal to your highest marginal tax rate because it factors in all the lower tax rates you paid on your initial portions of income.

Think of it this way: the marginal rate is about the future, what happens with each additional dollar. The average rate is about the past, a summary of what you've already paid.

Understanding both helps you make informed financial decisions in terms of how much cash you have on hand for tax season if you owe the CRA money.

Questions? My DMs are always open