Expecting a Tax Refund? Make it Count!
That much anticipated check that arrives is the mail; your Tax Refund may mean different things to different people. There are many things you can do with it, you can blow it all up or you can make it count; the decision rests with you. However the former choice will offer temporary satisfaction and the latter will stand you in good stead over the longer term. So here are some ways to make your tax refund count:
Pay off debt: For most people being debt free offers the most satisfaction and relief. On an online poll, more than 50% responders chose to use their tax refund amount to pay off debts or get as close to debt free as possible.
Build up a nest egg or add to it: If you do not have an emergency fund yet, then this is the best place for your tax refund to go. If you already have a nest egg, so to speak; feather it! Reinforce the emergency fund and make sure that you have a larger amount to fall back on, if there is an emergency.
Take a much needed vacation: This may, on the face of it seem like a frivolous expense. But sometimes a vacation can be a much needed way to recharge; a break can be just the thing to give you a boost of fresh energy. It can be a way to become more productive once again.
Additions / alterations / repairs to the home: If the bathroom has been crying out for a makeover for a while now; or if that old carpet is definitely bald and frayed, or if some furniture needs replacing then really that solid little amount of the refund may be just the thing. It makes particular sense to use the money to get the kind of alterations made that will help save more money in the long run. For instance making your home more energy efficient will save you money in the long run which is money well spent right now.
Increase retirement contributions: This is a good long term plan to augment saving for your future.
If none of these seem an urgent requirement for you, then by all means blow up your refund amount on things that offer instant, even immense satisfaction!
Great tips Nicole.
The idea about money is to make it work for you once you’ve earned it. Employ it wisely.
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Sounds like tax office is pretty efficient in the U.S. In Malaysia, we try not to get a tax refund coz it takes ages!
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