Tax Refund Coming? Three Smart Ideas…
Are you one of the lucky ones? Although we could argue that the best thing to do is break even…it sure is nice to get a refund! You should have a plan for your money if tax time is going that way for you. You may have an urgent need, such as being behind on bills or a crucial repair needs to be done to your home or your car. In that case, these ideas are not for you. Life happens…and that is perfectly understandable. These ideas are for our friends who are following their budget and have no emergencies at the moment.
Three Smart Ideas For Your Tax Refund
- Save It: You knew I was going to say that, didn’t you? I know this one is possibly the most boring, but it could also be the most useful choice. If you aren’t experiencing a rogue car repair or a rainy day of sorts right now, it could be right around the corner. It is very important to remember this when money is burning a hole in our pocket!
- Invest It: This could be in a college savings fund for your kids or in your own retirement. Don’t ever forget that this is money you earned in the first place. You worked really hard for it, and it wasn’t free. This is a responsible choice. You won’t regret this one in the future!
- Fund An Annual Expense: This could be something fun, like a family vacation. Or an adventure trip if you fly solo. This could also be something responsible, such as 6 months of car insurance. Another idea would be to hang on to it, or part of it, for your holiday shopping!
In Closing
No matter what you choose to do, just make sure you manage it and it doesn’t rule you! A trip to the mall, a splurge for a loved one, or a quick weekend getaway may leave you with nothing to spare. Treat your refund just like you would any other money you earn!
PS – Bonus Idea: Make an extra house payment with it…doing this once a year cuts a lot of life off of your loan 🙂
