Top 10 Ideas for Your Tax Refund
by Darlene Arechederra
Even if your tax refund isn't as large as you'd like, it is a lump
sum, one that can do so many wonderful things for you! Why not use
it to make your life just a little bit easier?
1. Train for a New Career
Maybe you've been wanting a new career, but haven't
had the money to get started. Training costs money. Perhaps you're
wanting to learn medical transcription and work from home some day
soon. Bank this return and use it to fund your training.
2. Open a Car Account
If your car decides to call it quits, will you be
forced back into the car payment merry go round? Tucking away each
refund over the next 5-7 years could nearly pay for your next car.
3. Begin a Clothing Fund for the Kids' Clothes
When you have money set aside, you can afford to
find kids' clothing at great discounts -- without whipping out your
credit card. Do this each year and you'll be ready when the new school
year rolls around.
4. Begin a Home Repair Fund
If you're a home owner, you'll eventually have to
replace your roof. Why not save up now for the money you'll need?
Build up your fund by depositing $10 or so from each paycheck. Also
tuck into this fund any miscellaneous cash gifts you receive.
5. Open a Vacation Fund
The trick here is to allow yourself only a set amount
to spend each year on your vacation, always leaving the majority of
the money in the bank. Aim for spending only one-fourth of it each
year, or a set amount like $500. Keep funding it with your refunds
each year.
6. Open a Christmas Account for Next Year
The holidays are over, but are the credit card bills
still arriving? Each year we think of setting up an account like this.
But then we worry about where the money would come from - and we give
up on the idea. Your refund, no matter how small, is ready and waiting
to ensure next year's purchases will be pre-paid.
7. Open or Add to Your Emergency Account
Having an Emergency Account is the difference between
knowing you'll be okay if you have an emergency, or stressing out
over where you'll scrape up the money you need. We all have our own
idea of an emergency, but why not be ready for it?
8. Use Your Refund to Pay Down Debt
Yes, you've heard this one before, over and over.
A word of caution, though. If you constantly have credit card debt,
it's likely you're still living beyond your means. What will keep
you from spending more than you make after this year's return has
paid off your credit cards?
Why not split your refund? Pay off your higher-interest
cards, learn to live within your means, and put some of the refund
into an emergency account.
9. Set up an Expense Fund Just for Your Car
Let's face it. We need to keep our vehicle running
in order to go about the business of living. Remember the last time
you had to quickly buy new tires? How did you pay for them? Cash?
Credit card? How about replacing a broken headlight? Even small repairs
can tap into money we don't have set aside.
10. Hmmm... To Spend, or Not to Spend
Torn between saving your $1700 refund -- or buying
something wonderful? Calculate how many hours or weeks you'll work
to make that $1700 again. Remember, you'll lose about 30% in taxes,
etc. Would tucking it away help you feel more secure?
(How about a Bonus Tip?)
11. Expand Your Hobby into the Profit Zone
Do you have a hobby you love but haven't had the
money to turn it into a profitable venture? Set this refund aside
to purchase supplies on sale so you'll be ready to go.
Darlene Arechederra offers simple, unique strategies to help others
move from spending to saving. She believes the trick is to discover
which ideas work best for each person -- because their money is not
one-size-fits-all. Darlene encourages others to discover their *own*
unique strategies for saving money!
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