Mo’ Money – Tax Refund Spending

It’s that time of year again. Time to start thinking about how to spend those tax returns. Every year, millions of Americans wait with bated breath for those checks to come rolling in. Every year, my husband and I dream of what we would spend our tax return on, and every year those dreams are simply that… dreams.

Early in our marriage, as students and new parents, we were lucky enough to get returns each year and it was so nice to always have a big chunk of money to do something with. We would typically take a small amount out to use as mad money and the rest went towards bills or fixing up our house.

We now don’t get those big chunks of money, but we still like to dream.

Here are some great ways (both practical and fun) for how to use your tax refund…

  1. Pay a Bill – Use this money to pay off something that causes you to have an extra monthly bill… this puts extra money in your pocket each month.
  2. Pay ahead on Bills – Do you have bills that are the same each month (trash, cable, etc.)? If so, use some of your tax refund to pay ahead on these bills.
  3. Make a big purchase – Have you been wishing for a new TV, a new car, or a hot tub? Use your tax refund to spoil yourself and make a big purchase for something you have been wishing for.
  4. Plan for your future – Maybe you have had your eye on a new house down the block, or maybe you have had the baby blues. Whatever your plans for the future are, use your tax refund to help secure your future and take some of the stress out of that process.
  5. Vacation – Plan a trip away with your family, even if just for a weekend. Time spent with family is never money wasted, in my opinion.
  6. Make a savings– are you someone who lives paycheck-to-paycheck with no cushion for those emergency times? Set your tax money aside as a “rainy day” fund or “emergency fund” for those times when you might need extra cash.
  7. SHOP – Use your tax refund to stock up on groceries, or to purchase school clothes for the upcoming school year for your kids. Or, maybe you need some new items to wear to work. Whatever you need to shop for, look for the best ways to stretch your dollars by shopping from the clearance racks and bargain bins.

 

Are you expecting a big tax return this year? What do you plan to do with your return? We would love to hear your ideas!

~Moe and Aleah

http://www.irs.com

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