It’s tax season and many Americans look forward to this time of year. Why? Because of the 83% of Americans who actually receive a tax refund, the average refund check is around $3,000 (IRS.gov). This is a pretty good chunk of money. To avoid “what happened to my refund check?” question, here are four things you can spend your money on.
[featured-image]
Save Some
“More than half of all Americans have less than $1,000 in their savings” (Gobankingrates.com). If you are included in this statistic, ensure that you set aside funds from your refund check to have at least $1,000 in your savings account, AT LEAST! If you have a bigger family or more expenses, you may want to save more. You could even save some for an upcoming vacation or set it aside for Christmas this year. Whatever reason you decide to save some, as long as you “save some” you are steps ahead of the game.
Put some towards debt
“Debt is the number one source of financial stress” (Gobankingrate.com). It affects every aspect of our lives. We have to work at jobs we hate because of it. We have to “rob Peter to pay Paul” because of it. We do can not max out our retirement fund because of it. And we can not put our children through school (loan-free) as a result of it. So instead of, splurging all of the tax refund, pay off a bill. Whether it is a credit card, a personal loan or a medical bill, find relief, by paying off one bill. This can and will help reduce some of the financial stress in our lives.
Give Some
Whenever my husband and I receive a paycheck or extra money, we always make sure we give some. When it comes to our paycheck, as Christians, we believe in the Biblical concept of tithing. When it comes to “extra” money we receive (like taxes), we designate a certain amount to give to a family, an organization or even our church. We wholeheartedly believe in order to get, you have to give and we make it part of our financial plan. Designate an amount to give and be a blessing to someone else.
Spend Some
I personally know of people receiving a ton of money back from Uncle Sam and splurging it all within a few days, only to put them in the same cycle of not having enough the next month and months thereafter. Listen, I love being able to have fun, shop, take trips, eat out and live life, but not at the expense of repeating the cycle of never having enough. As Dave Ramsey says, you can have the life you want if you are willing to make a few sacrifices now rather than later. This is the principle we try to (now) live by. “Living life now” has gotten me into a ton of debt. “Living for the moment” allowed me to regret even having those moments. And making financial decisions because “I deserve it”, allowed me to pay a lot of interest on those “deserving” moments. So, yes, taking a portion of your refund check to spend is something you can and should do. Splurging it all without saving, giving or putting some on debt, is not smart.
Being smart with this extra bit of money will allow you to be in a much better financial position later. Be wise! Be Smart! Give Some. Save Some. Debt Some. Spend Some. The future “you” will thank you later..
