Getting a Tax Refund? Smart tips for utilizing your tax refund
- Amanda Williams
- 3 hours ago
- 2 min read
Make this the year that you create financial change; the year that you do everything in your power to become financially free and not rehash old financial habits. Let this be the year that you spend wisely and be intentional about your financial responses.
A tax refund for most people can mean a big financial break. This is the time of the year where those who get a tax refund can catch up on expenses, purchase desirable items, and do things with their money they would not get done had there been no tax refund.
Having a large sum of cash can sometimes lead to impulse spending, but having a plan of action in place can help limit the amount you spend and ensure you are taking action toward achieving financial goals.
Here are some tips to consider when utilizing your tax refund:
Save: Before spending, consider putting aside 5 to 10% of your refund for a rainy day. Paying yourself first is always a good habit to have.
Spend: Spending is okay but it helps to be strategic about how much you spend. Putting aside 10% to 15% of your refund toward spending can allow you to enjoy your funds while still taking care of important needs.
Pay off Debt: Being debt free is one of the most crucial steps toward financial freedom and financial growth. Paying off debt frees you from financial stress and bondage, making it easier to achieve savings and other financial goals. The sooner you are debt free, the sooner you can build and become financially free. Let a tax refund be a part of your opportunity to become debt free.
Give: If you desire to give to your loved ones, there's absolutely nothing wrong with that. Giving is okay but it helps to give wisely. Putting aside at least 5% of your tax refund for giving can allow you to give to family and loved ones while still effectively managing funds.
Strategy Is the Goal:
This is indeed your money! These tips are not about telling you what to do with your funds but to help you become mindful of having a strategy in place for your money so you can achieve financial success and true financial freedom. If you don't create a plan for your money, it may end up going where you don't want or need it to go. Having a plan and sticking to it helps us to move forward with intention, success, and no financial regrets.
Question? Do you think creating a strategy for your tax refund will help you achieve financial success? I'd love for you to share your thoughts in the comment section!
If you haven’t subscribed yet, now’s the perfect time to do so. Stay connected and keep an eye out for more practical, results-driven financial insights.
Discipline is Key 🔑