May 22, 2022 3 min read
We may have passed the season of dread, (for all you standard filers). Now it’s time to get excited and start planning! For what you might ask? Planning how to spend (or save) that refund!
Do you take the extra cash and go on a trip? Buy something you’ve been waiting to get? Or–low on the fun but heavy on the responsibility factor–payoff a credit card? So many options and limited refund money = our 5 tips for tax season.
Our 5 ways to Effectively Help you Use your Tax Refund AND Improve your Financial Game
Do you own a home? Congrats! Want to pay it off even faster? Cool! Here’s how: Take your tax refund and makeone extramortgage payment to the principal balance of your home loan.
I.E. if your mortgage payment (principal and interest you owe the bank), is usually $2,000 a month. Make one extra payment for $2,000.Remember to apply this payment as a “principal payment” so it tackles the total loan balance. Do this yearly and cut 3-8 years off your total mortgage term. (On screen: Holy ****!)
By making one extra payment, it will reduce the total mortgage you owe the banks and the total interest you owe for the life of the loan. Big win.
Got any adventurers out there? Anyone with that wanderlust fever? Awesome! You can use some (or all) of your tax refund to save for your next big adventure. This will require a plan of attack for your trip! Budget out where you want to go and the estimated cost, then choose how much of your tax return you want to put into savings so you can make it happen.
Your budget + your tax refund = a game plan for your next adventure.
We all know that looming feeling when you go to sleep at night…it’s your credit card debt…and it’s not going anywhere without your help! Using your tax refund to help pay down your high interest debt can be a huge stress reliever and put you in a better financial position.
This may not sound as sexy as a vaca, but it’s a huge win! There’s no peace like peace of mind.
Be strategic! If you can pay off one card or more–great! Or even simply reduce the current balance on a credit card. Every opportunity to pay down debt and reduce your interest charges is a win.
While improving your financial life, remember that it is okay to treat yourself to something you’ve wanted to do and/or purchase. Reward and recovery are super important parts of a thriving, successful, and balanced life. You can create space for celebration and relaxation–just do it responsibly. Money, mind, and body.
Like what you heard? Grab our wealth building mini course in the description and get started improving your money game today using your tax refund the Financial Footwork way.
Remember. Life is short! It’s all about finding the balance between what you can do to improve your finances while enjoying your life in the process. We hope this helped! Rock on.
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