It's tax time! Some of you may be receiving refunds, and I have some tips for you if you are receiving one.
While receiving a tax refund probably means that you paid too much throughout the year on your taxes, I believe it's much better than owing the IRS or your state money. I mean, who wants to actually owe money?
Plus, you may have to pay penalties as well.
And that's why I like having a tax refund. I do try to minimize it as much as possible so that I'm not giving a large interest-free loan to the government, but I try to get it as close as I can so that I am not penalized for owing too much either.
Here are various things you may want to spend your tax refund on:
- Paying off a loan. This could be a student loan, credit card bills, your mortgage, car loan, and so on. Paying off a loan with your tax refund may allow you to eliminate a large chunk of your debt, or you may even be able to eliminate your debt completely. Can you imagine how less stressful your life would be?
- Down payment for a used car (I recommend checking out Drive Time's article 3 Reasons Buying a Used Car with a Tax Return is a Smart Choice, plus you can find a dealership here.) Drive Time has pretty good deals on used cars, plus they make buying a used car really easy. I only recently heard about Drive Time but I can say that I love their process. Plus, their commercials on TV are my favorite, haha. I'm always laughing and dancing to them! “Turn down for what?” 🙂
- Saving for a vacation. Everyone needs some relaxing time, right? Whether you go on a staycation or if you go somewhere exotic, your tax refund may allow you to go on a much needed vacation.
- Adding it to your savings. Increasing the amount you have in your savings is always a great idea.
- Renovating something around your home. Maybe you could finally finish a project around your home?
- Spa day. Yes, please!
Spending your tax refund on something you need instead of something you want is important to me. Since it was your money to begin with anyways, I always recommend using that money towards something you would have spent anyways. I used to work at a place where people would drop thousands of dollars of their tax refund on items they did not need, which always killed me, haha!
Instead, use your money towards things that you need that will help to improve your life.
This post is sponsored by Drive Time.
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