This year it might take some of us longer to receive our tax refund thanks to new tax law.
For this reason, it is important to be smart and learn how to stretch your tax refund to make it last more than just a month!
Tax season is upon us, and for some, it's a blessing, for others, a curse.
With that in mind, if you are looking forward to receiving a large tax refund, then it’s time to make this tax refund work for you.
How to Stretch Your Tax Refund is significant; especially when you are trying to take control of your finances.
If you are struggling financially or some other financial difficulties or just wants to start taking control of your finances, there is nothing better than making your tax refund work for you!
Keep in mind that if you are receiving a large tax refund, that means your withholdings are too high, so you might want to check up on that. If you think that income tax returns are a gift from the government, they are not, mis amigos.
Maybe if you see what your income tax refund as what they really are, instead of a gift, you will have your money working for you; and you will be spending it differently.
Receiving a large amount of money from your tax doesn’t mean you should spend money without a plan.
Receiving a nice tax refund feels good.
It’s the truth, and you shouldn’t feel bad about it at all.
I know I enjoy receiving a refund. But making that feeling last is even better.
Making use of that extra cash, and putting some thought into how we will use that money, is even better.
Check out these money posts:
- 10 Things You Shouldn't Buy When You Are Struggling Financially
- Are you following these 5 personal financial rules?
- 5 Smart Money Saving Ideas That Will Increase Your Savings
- Get Organized Checklist for Your Taxes
The feeling that you use that money to benefit you, instead of wasting it on things you won’t even remember months ahead, it’s a great feeling.
You see stretching your tax refund will give you a peek of what it will feel like when you take control of your finances.; when you are debt free.
To help you stretch your tax refund, I am giving you some tips on how to make that tax refund work for you; how to make that tax dollar stretch, so you can have peace of mind.
5 Smart Ways To Stretch Your Tax Refund
Budget your income tax refund
Before you do anything, please budget your money and make sure you know where it's going.
Do not spend without writing it down your plan for your tax refund. It will give you an idea of where your money has gone, and most importantly, where it's going.
Pay down your debt
If you have debt, then this is the best time to start paying your debt. Read what I am saying; I said pay DOWN your debt if you can’t pay it all, and I will explain in the next tip.
If you have debt, this is your time to start controlling it. Pay debt before spending your money on things you don’t need, or don’t matter.
The reason I said pay down your debt, not all your debt, it's because you need an emergency fund. If you don’t have an emergency fund, this is the best way to start.
Having some money set aside for an emergency will help you stay out of debt, or getting into more debt.
Plan for the future
Planning for the future doesn't mean ‘think of now,' or what you think you want. If you think of the entire year, and what you want to do, then you won’t spend your money right away.
Stretch your tax refund for the whole year, and you will see, it lasts longer. Think of Christmas; think of a mini vacation.
When you think about your future, instead of now, your money will last longer.
Start spending less money
Just because you received a large amount of money, doesn’t mean you have to spend without thinking.
With a budget, you should be able to see where your money is going. To make your income tax last, try finding ways to cut your spending. Look at your utilities and start finding ways to cut your bills down.
With these tips, you will be able to make your income tax refund last.
While doing this, you will learn how it feels to have money saved up, and what it's like to control your money, instead of the other way around.
Receiving an unexpectedly large amount of money is a blessing, and with that, you should be able to use it and learn from it.
When you have that sum of money, why don’t you ask yourself if you could make that money grow within a year, and see what ways you can make that savings grow?
Other ways to stretch your refund will be by investing it as well. The ways to stretch your income tax are endless, but it all depends on you.
How do you make stretch your tax refund? What tips or ideas do you have for us!
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