So, you got a little chunk of change back from Uncle Sam? Please let me help you spend it! But don’t get too excited. We won’t be heading to the mall or perusing Amazon!
I thought I’d give you a few helpful hints on ways to spend your tax refund dollars. After all, I love to spend other people’s money! Even though it isn’t often that my day job (accountant) creeps into this blog (oh, well, except when there’s a lesson to be learned or humor to share), occasionally I like to share tidbits of financial wisdom I’ve learned through the years. More than anything, I want you to become financially secure! Here are three suggestions on what to do with your tax return:
Begin, or add to, your emergency fund. A goal of $1,000 is a great start for an emergency fund. In the event your garbage disposal goes out, or you have a flat tire, you can pay the expense out of this fund. Don’t use your credit card!
Pay down your credit card debt. Use your tax refund to pay off or pay down your high interest credit card debt. And, stop using your credit card. Don’t let those credit card companies take all your hard earned dollars. Pay them off, and tear up your card!
Finally, bulk up your savings. If your credit card debt is gone, put those refund dollars into your saving account. A good rule of thumb is to have three to six months of your personal expenses set aside in a saving account.
A wise man thinks ahead; a fool doesn’t, and even brags about it! Proverbs 13:16
All these pointers are things I learned back in 2011, when my hubby and I took a Dave Ramsey course (You can find out more here). The only debt we had at the time was our house. But with Dave’s focus, we were able to pay off our mortgage within six months of the course! More than we could have asked our imagined! It took hard work and determination, but we did it – and you can too. You just need a plan. And then you gotta work the plan!
Oh, after you’ve paid down debt and bulked up your savings, feel free to reward yourself with a SMALL shopping spree! But remember, as Christians, we aren’t to put our hopes in wealth or worldly things, but only in God, who supplies our every need.
Command those who are rich in this present world not to be arrogant nor to put their hope in wealth, which is so uncertain, but to put their hope in God, who richly provides us with everything for our enjoyment. 1 Timothy 6:17
Grace be with you,
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