We all look forward to our refund every year but what is the best way to get the most out of our money?
In past years I knew people who have blown through their refund and the next thing they know it gone with nothing to show for it. We all have done it we start pinching and pinching…. A little gas money here, snacks, food and hair products there ☺ and the next thing you know your account balance is zero! What a depressing feel smh! Well HELP IS ON THE WAY.
The way I see it, is your refund is just a great saving account, it money you have been pulling up out your paycheck. Of course you can’t touch until the next filling year but this is just the mind frame that I use.
Now we all fantasize of all the material things we could have
But lets get real! If we want to be responsible, let’s make it work to our families’ advantage and let start setting some goals.
Depending on when you file, tax refunds are usually issued around February or March (the beginning of the year, A fresh start). So let start thinking about what we having coming up for the year:
- Summer camp
But 1st let’s start by understanding what a tax refund is
Now we know that your tax refund is not free money, it is money you get back for over paying taxes.
I would suggest to start with digging yourself out the debt hole. Pay off any past due bills or credit cards. Give yourself a fresh start. We all HATE paying billing and if you have any credit cards , think of all the high and unnecessary interest you are paying. PAY OFF THOSE CREDIT CARDS, interest is just wasted money. Money is already tight, so we don’t want to put out any extra money if not needed. As soon as you get your refund payoff the balance, Don’t even think about it, JUST DO IT!!! Hahaha but seriously. I promise you , you will feel so relieve months later when that is one less bill you don’t have to worry about and to put icing on the cake once you pay off any past due bills and credit card balances you credit score with go up up up and a wayyyyyyyyyyy ☺
Every Family is different and has different circumstances. The goal here is to do what is best for the long term of your family.
Here are some resources that could help you with your saving account: