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Don't Blow Your Tax Refund - July 2019
It’s easy to see a tax refund as some kind of gift, or as free money to spend on whatever you like, and with the extra $1,000 everyone is looking forward to, it may well seem like a gift.
It’s not.
A tax refund is your money, that you haven't been able to use during the year. Plan now for how you’ll manage it, or this refund could evaporate. It would be as useless to you as not getting a refund at all.
Here are some simple, but very effective, ways you can use that tax refund to give your finances a serious boost.
1. Treat it like a regular pay. Follow the 10-10-80 rule. Give 10 percent, save 10 percent and put the rest into your Emergency Fund account.
2. Stash it. Put it in your Emergency Fund.
3. Use it to give your super a boost. Talk with your bank or a financial planner to figure out the best way you can do this.
4. Reduce credit-card debt. You can pay any amount at any time off your credit-card account, you don't need to wait for a statement or pay just the minimum required. And stop using that card; keep paying extra until the statement shows a zero dollar balance.
5. Replace an energy eating monster. It might be time to replace that old energy-guzzling refrigerator or water wasting washing machine or dishwasher. Look for energy efficient appliances to reap the savings.
6. Pump it into your car. Get the routine maintenance or repairs to your car you’ve been avoiding.
7. Build a stockpile. Put this money into your slush fund so you can stock up on great grocery deals as they come up without affecting your grocery budget. An extra $1,000 for building a stockpile will give it a huge boost - around three months of basic groceries costs about $1,000.
8. Carry out some routine maintenance. What do you need that you've been putting off? A trip to the dentist, a good haircut, new glasses? Perhaps you'd like a weekend away or new outdoor furniture. If that renews your joy, it might be the best money you’ve ever spent.
Take some time before you get your tax refund and think about how best to use it to benefit you and your goals. As with all spending, think and plan before you spend and the end result will be so much better.
It’s not.
A tax refund is your money, that you haven't been able to use during the year. Plan now for how you’ll manage it, or this refund could evaporate. It would be as useless to you as not getting a refund at all.
Here are some simple, but very effective, ways you can use that tax refund to give your finances a serious boost.
1. Treat it like a regular pay. Follow the 10-10-80 rule. Give 10 percent, save 10 percent and put the rest into your Emergency Fund account.
2. Stash it. Put it in your Emergency Fund.
3. Use it to give your super a boost. Talk with your bank or a financial planner to figure out the best way you can do this.
4. Reduce credit-card debt. You can pay any amount at any time off your credit-card account, you don't need to wait for a statement or pay just the minimum required. And stop using that card; keep paying extra until the statement shows a zero dollar balance.
5. Replace an energy eating monster. It might be time to replace that old energy-guzzling refrigerator or water wasting washing machine or dishwasher. Look for energy efficient appliances to reap the savings.
6. Pump it into your car. Get the routine maintenance or repairs to your car you’ve been avoiding.
7. Build a stockpile. Put this money into your slush fund so you can stock up on great grocery deals as they come up without affecting your grocery budget. An extra $1,000 for building a stockpile will give it a huge boost - around three months of basic groceries costs about $1,000.
8. Carry out some routine maintenance. What do you need that you've been putting off? A trip to the dentist, a good haircut, new glasses? Perhaps you'd like a weekend away or new outdoor furniture. If that renews your joy, it might be the best money you’ve ever spent.
Take some time before you get your tax refund and think about how best to use it to benefit you and your goals. As with all spending, think and plan before you spend and the end result will be so much better.