With tax season drawing to a close, many of us are starting to wonder what we’ll do with our tax refunds. Don’t let your refund slip by! Use the tips below to decide how you’re going to spend your refund today, so that you’ll be ready when the time comes.
Pay down debt
If you’re working to pay down debt with a Monthly Envelope in Goodbudget, your tax refund is a great opportunity to get ahead. Allocate what you can now to pay down your debt, and you’ll save each month with lower payments. The average credit card charges ~15% interest. Investing $500 now to pay down your debt can save you over $1,000 over 5 years.
Save towards a goal
Saving towards a long-term goal? Use your refund to catch up or get ahead on your savings plan. If you don’t have a long-term savings goal, start one! Don’t be “surprised” the next time the holidays come around, or your quarterly insurance payment comes due. Set goals in Goodbudget to budget for these large, but predictable expenses.
Be generous with your money to experience joy and disarm fears of not having enough. If you already make donations to a charity, that’s great! But feel free to be creative in how you give. You can take a young person out to lunch, or express gratitude to your child’s favorite teacher by treating them to dinner. Have fun with your generosity!Originally posted on 4/9/2012. Last updated on 4/11/2018.