Will you be receiving a tax refund check this year? If so, what are you going to do with it? This isn't "extra" money, not even money you've "found." This is money the government's held for you in a saving's account. Therefore, you should use it wisely. So, you should consider doing one of these things.
Pay down your debt (e.g. credit cards, student loans, car payments). Focus on the loan with the highest interest.
Put some money aside and start an emergency fund. This account should contain enough money to cover all of your expenses for 6 months just in case your main source of income is suddenly gone.
Take a look at each of your insurance policies to make sure you'll be fully covered in case of an emergency.
Set aside some money for retirement. The earlier you start, the more money you'll have saved up.
Plan ahead for your children's college education. It's expensive so you should start a 529 plan ahead of time.
Upgrade your home. You may even qualify for some tax credits or abatements to help stretch your money some here.
Invest some money in a taxable account. Doing so can help you amass a big nest egg if you do it right.
Donate to a charity.
Set the money aside for this year's vacation. Instead of using your charge cards, use your tax refund money so that you won't have to stress about the financial aspects of your vacation later on.
Start with the first four items on this list. Once you've accomplished them, you can work on the rest.
If you're receiving a refund, what are your plans for it this year?
This post is part of "My Stay At Home Adventures Linkup Party"
A lot of people tend to take their tax refund for granted, and spend them as extra cash. We need to be wiser in spending our money nowadays, since earning it isn’t always easy. Anyway, thanks for sharing these plans with us, Brenda. Have a great day!
ReplyDeleteWanda Hanson @ Tax Tiger