A tax return is money you loaned to the government interest free!
It’s tax season and I know many of us are waiting to receive a deposit soon! I know I was itching to receive my tax return. But before you consider splurging and buying something you don’t need, I encourage you to make a plan for your tax return. Determine how you would spend your tax return BEFORE it hits your account.
Here are 10 ways you can use your tax return to help you get ahead financially.
💵Bills:
Get caught up on any late bills.
💵Beginner Emergency Fund:
Use your tax return to set up a baby emergency fund of $500-$1,000
💵Debt:
Use your tax return to make an extra payment towards your debt.
💵Tithe:
Give 10% of your tax return to your home/ local church.
💵Give:
Give a portion to an organization that you support.
💵Downpayment:
Put your tax return towards a downpayment on a home or car.
💵3-6 month Emergency Fund:
Use your tax return to ”beef up” your baby emergency fund.
💵Invest:
Put your tax return towards your Roth IRA or kids’ college fund.
💵Sinking Fund:
If you’re saving for a big-ticket item such as a new phone, computer, vacation, Christmas, or a special birthday, put your tax return towards your sinking fund.
All in All,
No matter what you decide to do. Have a plan for your tax return. Use your tax return to help you get ahead financially.
How do you plan to spend your tax return?
I tithed a portion of my tax return to my home church and the other half of my return went to an extra debt payment.