Friday, February 15, 2013

How will you use your Tax Refund?

Itʻs Tax Time! Which means that we see an influx of Rent-To-Own ads coming in the mail. We see flat screen TV boxes near rubbish cans along the street as we pass by. Vacations Hawaii has a nice long line of people making reservations to take a trip to Vegas.

If youʻre like me, you receive a decent amount of money from your Federal and State Tax Refund. Which is just that, a REFUND! Not Free money, as some people may think. So, what is the responsible thing to do with your tax refund? Pay off debt, Invest, Give to Charity, Save. Any of these options are ideal.

However, too many people treat their tax return as if they won the lottery. As if it was money they found in a duffle bag at the bus stop. Your tax refund is some of the money that Uncle Sam has been taking out of your paycheck all year long.

Iʻll be honest, I take a small portion of my tax refund and treat myself to a new outfit or a nice dinner out. But about 85-90% of my tax refund is put towards paying off debt. I have yet to file my taxes for 2012, but my plan is to use the money (if I receive a refund this year) to pay down my car loan so that I can be pretty much debt free (with the exception of student loans) come the end of 2013.

So my question to you is....What will you (or did you) spend your tax refund on?


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