Smart Tips for Utilizing your Tax Refund

For those who receive tax refunds this may be like your adult Christmas. This refund gives us the opportunity to purchase things and do things with our money that we could not do without it. If you will receive a tax refund, let's use this as an opportunity to apply smart goals. Consider utilizing these smart tips with your tax refund this year.

Save at least 5%

My saying is, "it’s okay to spend more than you save as long as you are saving something, just don’t spend and not save". Applying as little as 5% of your tax refund towards savings can still be enough to save for a rainy day. Something is better than nothing, however, whichever amount you choose to save just be sure it is realistic to your financial situation.

Spend no more than 15% on wants

It’s okay to spend and enjoy your funds but while we’re having fun spending, lets also spend smart. Consider applying no more than 15% of your tax refund towards your spending account. This can leave room for you to pay off debt and save, while still enjoying your funds.

Use no more than 30% towards new furniture or vehicle

If you need to purchase a new car or new furniture/home decor, consider searching for a vehicle that offers a down payment of less than 30% of your tax refund or applying less than 30% towards new furniture if needed.

Use at least 50 % to pay off debt and catch up on expenses

Paying off debt and catching up on expenses can be a very smart move to make with tax refunds. The less debt you have the more money you will be able to save. Life is less stressful when there is no debt. So, let’s use this opportunity to become debt free and stay debt free.

More Money – Less Debt- More Freedom

Any additional income that you receive outside of earned income should always be viewed as an opportunity to become debt free and stay debt free. While some who receive tax refunds may use this as an exciting opportunity to spend, we must use this as an opportunity to also use money wisely. Having a strategy for how to spend your tax refund can help ensure you make those wise decisions that will help take your finances to the next level.

What are some wise moves you think you might make this tax season? Comment below. If you haven’t already, feel free to subscribe below.

Discipline Is Key 🗝️

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