Adulting Your Tax Refund
So, that tax refund, right?! Those of us lucky enough to get one, dream about spending it. Except we’re moms. So I am about to suck all of the fun out of it!
Why do you get a tax refund?
Many people get taxes held out of their checks, but they are enough to pay all or most of your tax burden during the year. And the government doesn’t do apply any credits or deductions until you actually file your taxes.
Taking the deductions and credits out after you file means that you get a refund! YAY!
A perk to tax refunds is that they are arguably a great boost to the economy, and we have all seen the car dealerships that run programs where you can buy a car first then use your refund as a down payment later. And so our economy has come to rely on the boost during the early part of the year!
Don’t blow your refund!
I have seen people that go on to completely blow their refund. Whole new wardrobes they don’t need, pricey electronics they end up selling online later.
For sure, go buy some new clothes if you need them, but do it within reason. Use the majority of your money to build wealth!
I am presenting you with 2 lists: one that will help you save money throughout the year in case you need help with month-to-month expenses, and one list of ideas to build net worth.
I don’t expect you to do all these things on these lists. This is purely for ideas that could be right for your family.
Ideas for building an easier year for your family:
- Pay rent ahead for as long as you can
- Balloon payments on debt (just make sure to specify the extra is for PRINCIPAL)
- Buying groceries and household products in bulk
- Prepay utilities, insurance, or cell phone bills
- Pay for a cash car
- Household repairs and maintenance
Ideas for building net worth:
- Pay off or balloon payments on debts
- Start a savings account
- Start an investment account
- Buy cash value life insurance (not TERM)
- Start a business
In the past, we have bought a year’s worth of things like toothpaste, soap, shampoo, 1000s of toothbrushes (because with 5 kids, they just disappear and our spoons, too), commercial-grade detergent, etc. We have even considered buying half a cow from a local ranch!
This year, we are investing in our e-commerce businesses, buying bulk housewares, and investing in some kitchen supplies to bring my freezer cooking to the next level!
Do you have any ideas of ways to use your tax refund for bettering your life? Comment below!