How Should I Use My Tax Return Money?!

Hey girl, hey!

Guess what time it is? Yep, that’s right… TAX TIME! It’s that time of the year many people look forward to because there’s a chance you could get back a nice chunk of change from the hard work you put in all year long. In fact, about 8 out of 10 people get back a tax refund every year averaging about $2,800. It’s almost like Christmas all over again! But before you get too excited and psychologically spend your tax return money before it even hits your account, let’s discuss some smart ways you can utilize this money to help propel you towards your goal of financial freedom.

1. Pay Off Debt!
Whenever you come into a large sum of money, the first thing you’ll want to do is see what can be paid down or completely paid off.

Look… it’s no secret that most Americans are in debt. The average American household has about $16,000 in credit card debt…. and that’s just credit card debt. Imagine how much higher that number would be if you include medical bills, car notes, student loans and even mortgages… it can begin to skyrocket out of control!

RELATED: How to Dig out of Debt…

But girlfriend, you are here reading this post... and that shows that you want to conquer your financial battles. So find out who you owe, how much you owe, and get rid of a good amount (if not all) of your debt in one swoop. You won’t regret it!

RELATED: So What’s This Thing Called Budgeting Anyway?

2. Stack Your Savings!

It’s not often that you’re going to come across a large lump sum of money at one time, unless you get frequent bonuses at work or happen to win the lotto (a girl can dream, right?!). So when you’re fortunate enough to get some extra money, it would best benefit you if you throw a stack of it into your savings account.

Maybe you’re saving up to purchase a new car, or maybe you’d like to purchase a house in the future, or just maybe you don’t know what your future financial goals are… but saving money for a rainy day will always be your best bet, because hunty… when it rains, it pours! Keep yourself prepared for some of life’s hiccups.

3. Take Care of Something You Need.

You know that car or home repair you’ve been putting off? Or what about that important dental work you need to get done. Yea… that thing. Well now that you’ve gotten some cash back, girlfriend, you can finally get whatever that thang is fixed.    

​4. Take a Vacation!

Imagine turquoise water and white sand beaches... ski slopes covered with snow as far as the eye can see, or spending a long weekend in a luxury cabin! But wait… before you click that “book it” button, let’s do an assessment of things you’ve already done with your money. Have you:

Paid down debt? Check.

Put money in savings? Check.

Took care of necessary things? Check.

Okay… book that vacay, girlfriend! There's nothing like treating yourself to a getaway while making lasting memories with the ones you love the most. But what's even sweeter is when that vacay is pre-paid in full, so you can fully enjoy yourself without having to worry about paying for it later!    

Until Next Time,
Elle