What should you do with your tax refund this year?
We have some ideas
We are in the thick of tax season now, with only a few weeks to go before the deadline! (If you haven’t filed yet, be sure to check out our blog posts on things you should know before you do.)
That feeling of anticipation when you find out you’re due a refund and are waiting for that money to get to you is like no other. We know (and love) the feeling! It’s always a good idea to make a plan of what you want to do with your refund before you receive it. Should you save it? Should you treat yourself? The options are bountiful.
If you’re still trying to figure out what to do with your tax refund this year, we have a few ideas.
Put it in a savings account
We’d be remiss if we didn’t mention the obvious here. Why not tuck some of your money away? If you’re not the best at saving during the year, this is a great way to start. It will be extremely helpful in emergencies and expenses that always pop up when you least expect it.
Pay down your debt
If you’ve gotten behind on payments, here’s your chance to catch back up. If you’re up-to-date on your bills, this is your chance to get ahead. For those of you sitting on credit card debt, pay some of all of it down (that high interest can be a killer and causes you to pay far more than your actual balance). You won’t regret lessening your debt, that’s for sure.
Put it towards something that makes you happy
Treat yo’ self isn’t just a fun, catchy phrase. It should also serve as a reminder to take care of yourself and your happiness. We’re not saying neglect your responsibilities, we’re just saying that if you have the ability to do something for yourself you should. Get that mani-pedi, have dinner at your favorite restaurant, go shopping and buy something you’ve had your eyes on. Self-care is more important than you know, and it’s so important to do things that make you your best you.
Spend it on travel
This could also count as something that makes you happy if you love to travel. But this could also come in handy if you have family or friends you’ve been meaning to visit but didn’t have the budget to make it happen.These extra funds might just be what you need to be able to take the whole family on a vacation to a fun destination or to see extended family you don’t see as often.
Use it on a down payment for a car
We understand that often it’s much easier to budget money each month for a vehicle than to save up the money needed for a down payment. If the down payment is the one thing that’s holding you back from getting the vehicle that would make life better for you and your family, you should definitely consider using the money from your refund for your down payment. And remember, the higher the down payment, the lower the monthly costs.
Are you receiving a tax refund this year? How do you plan to spend it?