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Spend Your Tax Refund Money Wisely

Spend Your Tax Refund Money Wisely

Every year, millions of Americans receive billions of dollars back in overpaid taxes in the form of a tax refund.


While many blow their refund on dinners out, new clothes, vacations, parties, and presents for themselves. A few use their tax refund to help them get ahead financially.

Amaze yourself by making a difference this year, or vibe-up on those good and vibrant decisions you have made to boost your future. You will thank yourself later.

We do not just want to tell what you are not doing right or how wrong you are by not doing something, we want to work with you by suggesting what you should do to add value to yourself and ask that you pay it forward.

Therefore, we put the following suggestions together for you:

  1. Deliberately become Financial discipline:
      1. Being disciplined about your money can be extremely difficult. Here some ways to achieve being


    1. more disciplined with your money.
    2. Set Financial Goal and Stay focused on them.
    3. Tell Need and Wants Apart:
        1. Needs: are expenditures that are essential for you to be able to live and work. They’re the recurring expenses that more likely than not eat up a large chunk of your paycheck example.”
            1. Housing (Rent, mortgage, etc.)
            2. Transportation: (auto loan, insurance, repair, bus ticket, etc.)
            3. Insurance (life, health, mutual, etc.)
            4. Utility (Gas, water, phone, cable, and electricity)
            5. Food (Homemade food, not eat out)
            6. Clothing (Regular)


        2. Wants: are expenses that help you live more comfortably. They are the things you buy for fun or leisure. You could live without them, but you enjoy your life more when you have them.
          1. For instance, food is a need, but mochas and lattes are likely more of a want.
          2. Travel
          3. Entertainment
          4. Designer clothing
          5. Gym memberships
          6. Coffeehouse drinks
        3. Use 3-Rs: Reduce waste, reuse and recycle.
        4. Do a monthly budget, not on what you want, but based on your needs and affordability: Always take a list to shopping and adhere to them.
        5. Do not yield to PEER pressure: “Peer pressure does not have age limit”.
        6. Train Your Emotion to Employ 48-hour rule: If you are not sure or you think you are just tempted especially for unplanned purchases; force yourself to wait for 48 hours, if you still feel the same, you can decide


      1. .
    4. Expand Your Emergency Fund: We advise that you sit down and calculate your household expenses to the last penny: Ensure that have that figure multiplied by six (6) in emergency fund!
      1. Emergency fund refers to money stashed away that people can use in times of financial distress.
      2. An emergency fund is financial security for future disasters (like sickness, loss of job etc.) and/or unexpected expenses.
      3. Emergency funds should typically have three to six months’ worth of expenses.
      4. Individuals should keep their emergency funds in accounts that are easily accessible and easily liquidated. It is advisable to open an emergency fund account separate from CD or regular checking or savings account or bank and use a
      5. Savers can use tax refunds and other windfalls (insurance, stimulus etc.) to build up their funds.
    5. Pay Off Credit Card Debt: If you cannot pay off your credit card every single month, then there is an identified problem that requires resolving.
      1. You do not want to carry credit debt as you pursue your next financial goals.
      2. Credit care Interest rate varies from APR49% – 25.49%: “Free Ticket to poverty”
      3. Pay off your small debt first and graduate to paying the high balances and stop spending what you cannot pay off at the end of the month. – refer to 1e above
      4. If there is a vivid emergency, then by all means “borrow” from your emergency fund and be prepared to pay back
    6. Pay Off Student Loans or Other Unsecured Debts:
      1. Pay down or off any debt with an interest rate over 6% (these may include: personal loans, payday loans, title loans, debt consolidation loans, and high-interest private student loans.
    7. Increase Saving:
      1. Good practice of 1 to 4 above will leave excess money in your pocket, put them towards savings
      2. You are not there yet but threading on the path of comfort.
      3. Please still come with me
    8. Prepare for Retirement:
      1. Contribute to a Tax-Sheltered Retirement Account
      2. Contribute to a Tax-Sheltered Education Account
        1. An Education Savings Account -ESA plan allows money that is invested and used for college to grow and be withdrawn tax-free for a named beneficiary – your child. In other words, you deposit after-tax funds and do not have to pay capital gains tax or regular income tax on the investment’s growth, as long as it’s us
        2. ed to pay for qualified education expenses. Essentially, the tax treatment is similar to that of a Roth IRA or Roth 401k.
        3. A 529 College Savings Plan: These plans are named after the section of the IRS code that authorizes college savings: section 529. Basically, it is a savings account designed specifically for college tuition and other related educational costs. They are your family’s federally approved tax break for college savings. These qualified tuition plans can provide special tax advantages such as state income tax deductions and tax-deferred growth.
      3. Invest in Yourself: If you have covered all of the above, invest in your well-being or your future.
        1. Start a small business.
        2. Maybe you have always wanted to learn to cook.
        3. Photography and Photoshop class.
        4. Real Estate investments
        5. Bookkeeping
        6. Youtuber
        7. Sell on Amazon.
        8. Add to the list!

 Comment and Share with Friends ….Joy Amaghi

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