It’s the most wonderful time of the year…
This is the part where you may question our sanity and think, “Hey, it’s not December.” Although you are correct, an extra special gift awaits a few of us this season. It’s enough to channel our inner child running down the stairs to check under the tree searching for presents that say our name.
Except, the gift we’re talking about won’t be wrapped perfectly by parents days prior with each fold sealed with love. It won’t be labeled with their names or even better – Santa. Can you guess what it is?
It’s your tax return! As your financial friend, here are a few smart ways to use your tax return:
- Pay off debt
You had to see this one coming. Get out of the rat race as Robert Kiyosaki puts it. Take your tax return and invest it into yourself differently – working your way out of debt. We know it’s not an easy feat, but it’s one worth not giving up on.
In last month's blog, we explored a few of Dave Ramsey’s tips on how to do this. In addition to these, the U.S. News and WorldReport would add:
- Pay more than the minimum balance
- Start with the smallest debt first(accomplishing one will encourage you to keep going.)
- Create a budget – and stick to it
- Change your habits
Like their ideas? You can read more tips from the U.S. News and World Report here.
- Put money back into savings or an emergency fund
Preparation is key and you can never be too prepared by putting money back into savings or an emergency fund. What is the difference?
An emergency fund is a cash reserve set aside for unplanned expenses or financial emergencies. The following are all benefits of having one:
- Reduces stress levels
- Encourages saving behaviors
- Avoids bad debts
Of course we are fans of putting it back into savings as well. You really can’t go wrong with either decision you make.
- Spend it on something fun
Enough with the boring stuff, what do YOU want to do with your money? Life is too short not to use your money how you want.Financial security is important but so is enjoying the fruits of your hard work.
Whether your pleasure is big or small, reward yourself.