It’s about that tax time which means lots of families will be “tax rich” and have lots of plans to blow it on all the things. Which I am completely guilty of doing… but as the years go on my hubby and I have always had a certain way we do things before we blow any money. We aren’t real big spenders so tax time is more of a savings situation than anything else for us. Which isn’t the case for most, so I decided to share 7 intentional ways you can spend your tax refund. And I promise they aren’t all savings… so let’s get to them.
Pay Off Debt
If you have any type of debt lingering around… your taxes are the best time to pay it off in bulk and have it not cut into your monthly budget. Which actually will free up some space on your monthly budget to save or plan for other things. Having debt like credit cards really costs you more than the items itself because your paying interest. So the sooner yo josh it off the sooner your going to save yourself a ton of moolah.
Pay Off Student Loans
This goes the same as debt. But if you have student loans. The sooner you can get them out of your way the sooner you’ll be able to breathe and feel the freedom of financial burden. And this goes for no matter how much you make. The less bills you have due each month the less on your plate you have to take care of and the more you can enjoy life.
Create A Savings
This I believe is the no brainer part to taxes. Especially if you don’t already have one. Having a savings is extremely important. Yo I never know when something is going to come up and it’s better to be ready than to struggle with it. Now this doesn’t mean your savings will cover anything that comes up but it’s a good place to start. And the more you add to it the better. So even plan out go to save with each check too.
Use It Towards A Down Payment
If your tired of renting or just want a place of your own to do whatever you want to do to it. Then tax time is the perfect time to set aside money for a down payment. And it’s a bigger bank deposit that banks don’t question. Your lender will want to see your bank statements to make sure your legit and don’t have crazy transactions. But also be aware that tax time is usually a sellers market. So hang onto that down payment until closer to fall when the selling of homes dwindles down. Yes there won’t be as many on the market but you could possibly save 10-20k on your home.
Repair/Maintenance For Higher Cost Items
If you have higher cost items that need to be repaired or replaced them using your taxes to do them is a great way to save from having to pay from your budget. If you don’t have any but know in the next year or so you will, then use them to save up towards it. Kinda like a rainy day fund, but for a specific item or items.
Put Away For Holiday/Birthday Funds
This is one my hubby and I have been doing since we had children. We always use our tax refund to save a certain amount per kid for birthdays and holidays. This makes it super easy for us to plan ahead and not have to worry about adding them into our budget or using credit cards. We can also Holiday shop when we catch the deals early.
Plan Family Experiences
If all of the above is already taken care of then why not plan out some fun family adventures. You can pre purchase tickets to go to things as a family ahead of time. And then your free to go when ever you want.
I hope these 7 different ideas helped you find some intentional ways to use your tax refund to prepare for your future. Whether it’s something fun or just savings there’s something that will work for every family.
Until next time, live a life you love!