As a tax advisor, I see many of my clients getting very large tax refunds this time of year. I also have the same clients that have used up most or all of that money before the beginning of spring. Here are some ways that you can stretch that tax money a little further:
Hear me out here. When I say ‘spend it’, I don’t mean go buy a new tv, take an expensive trip or get a loan for a vehicle that you really can’t afford. What I mean is spend it wisely. Use it to buy enough meat to stock your freezer for a year (I’ve done that and its SO worth it!). Use it to buy new tires for your vehicle (it’ll save on your gas mileage!). Pay for a year’s worth of car insurance (did you know that you pay MORE insurance if you pay in monthly increments?). The point is to spend the money on things that will end up SAVING you money throughout the year.
This is actually really hard for some of us (me included!). Saving money isn’t exactly the easiest thing to do but I promise you wont regret it. I have a friend that saves her tax refund into an account that she can’t touch. Her house payment is auto drafted out of the account each month and she doesn’t have to worry about making the payment each month (genius!). It is a great idea to save that money for things such as back to school expenses that pop up at the end of summer and Christmas (that one seems to sneak up on us each year).
Have you been wanting to start a business but you just haven’t had the extra money? Are you needing a college fund for the kids? Would you like to start your own retirement savings fund? Use your tax refund! Make your money work for you. Do something that will allow those dollars to duplicate over time.
Don’t let another tax refund slip out of your hand without putting all of those dollars to good use!
What do you use your refund for? I’d love to hear from you!