The time has come for those of us who are getting a tax refund to begin checking the mailbox daily in anticipation of the check. While most people blow their tax refund check on a luxury purchase, you could actually do something different this year and put that money to work. Although not as fun as buying that big screen TV, saving your refund or paying off some debts can put you leaps ahead towards your financial goals.
Free Money, Put To Work
Most people tend to view their tax refund as free money. This is a misconception as your tax refund is simply a reimbursement of what you overpaid the government. Therefore, that money was already earned income that you never saw that could have been used to save or repay debts to begin with.
Saving money is difficult for most people, especially when it isn’t a priority. Putting your tax refund check into your savings can give you a quick and immediate boost to your savings account.
If saving isn’t your thing then consider paying off or lowering your debts with your refund check. You may even be able to use the amount of your refund to help in credit negotiations. By having a large lump sum available, you could settle your debt payment for less than what is owed and get out from under a debt burden.