5 Tips for Your Tax Refund

Hey there, Money Masters!

Well, it’s tax season! I’m sure you are getting everything organized and gathered to either send to your tax professional or file yourself. Whatever the case may be, I bet I know what is on your minds! You are thinking- “Will I get a good refund?”

As you patiently wait by the mailbox for your required documents, (remember, employers must have W2’s mailed out by January 31st) I want you to start thinking about what you can do with your refund. I know it’s tempting to want to go on a shopping spree or make a major purchase but just take some time to think and plan first.

 

Here are 5 tips on what you can do with your refund!

1. SAVE– You knew I would list this one first, didn’t you? Put it right in the bank in your savings account or interest bearing account. If you do not have an emergency fund, now would be a good time to start one. Save about 3 months’ worth of your expenses, if possible.

2. PAY DEBT– 38% of Americans chose this as their refund goal last year. Take a close look at those debts. Maybe start with those that have the highest interest rates. If you can’t completely pay off a debt, don’t worry, any level of decreasing it is a good thing!

3. SPEND– Hold on now, don’t get crazy! I don’t mean rush out to the outlet mall and run rampant 😉 Maybe you’ve been waiting on home improvement plans or car repair? If there is a large ticket item or something you really need then do some price comparing and see if you can part with that amount.

4. VACATION– Has it been a while since you’ve had a family vacation or a couples’ getaway? Last year, only 11% of people polled about how to spend their refund chose travel.

5. MIX N’ MATCH– Depending on the amount of your refund, you could do a combination of different things. For more ideas, take a look at this article from moneycrashers.com.

 

It can feel pretty darn good when that check comes in the mail, but just remember to take your time and think through the best way to utilize this money according to your unique financial situation. I have faith that you, my money masters, will be responsible and make smart decisions!

Blessings to you all,

–Helen