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It's easy to get sucked into the trap of spending your entire tax return and having nothing to show for it later. Follow my 3 quick tips below to maximize your refund.
The number one thing is to pay down some of your debt, and hopefully all of your "bad debt". The only debt that we advocate having around is the easily affordable home mortgage. What is easily affordable? 1/2 of the lowest earners income AFTER tax.
You have to treat yourself in life. It is ok to spend a portion of your refund on some fun things. Plan something together as a family, or split it equally amongst partners and let each other have a field day with it. Remember, you can not comment on how the other half spends their money. That is why it is called a "field day".
It is always prudent to save some of your return. If you do not have an emergency fund of 3-6 months of expenses then get one started now. Make sure you have a budget written down that shows all the monthly income and expenses. If you don't, I suggest you download one here. http://www.donniemasters.com/masters-of-finance-blog |
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October 2020
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