I’m sure by now you have seen the commercials declaring it “Refund Season”. It’s an exciting time of year for many people as they get a refund this time of year. I understand that! It’s exciting to get a bunch of money!
I also understand that if we are not faithful in managing a little bit of money then we are most likely not going to be great at managing a whole bunch of money. (This is the reason most lottery winners go broke within five years of winning)
So how do YOU manage your refund?
The FIRST thing you need to do is discuss with a tax professional the adjustments you need to make so that you get the money in your paycheck each month instead of as a refund.
Once you get your refund, make a priority list of how you will distribute that money.
Take 10% of your refund and give it to charity. Or, distribute it among a few different charities. Or, go buy something and give it away to someone else. Think of what a blessing it would be for someone else to receive the money or item(s) you are giving.
During the month of March, I am raising money for Canines for Service. My goal is to raise $5,000! The link to donate will be posted on my Facebook page, Melissathecoach.
You should have at least $1,000 in an emergency fund. Make it $2,000 if it takes a while to replenish the fund when an emergency happens.
Pay Off Debt.
Debt deters dreams. Debt prevents you from living the life YOU want to live. Pay off your debts in order from greatest to least using the debt snowball method. Then, DO NOT incur more debt. Cut up your credit cards!
How would it feel to have six months of expenses sitting in the bank to cover loss of job, illness, or something else that prevents you from working? How much does it cost to financially operate your household for one month? (rent, utilities, transportation, food, etc. etc.)
Multiply that number by 6 and make a plan to save that amount.
What would you love to have for YOU?
IF you have given, saved and paid off debt AND you still have some money left over, buy something for you. Oh, I know you are so tempted to do this FIRST but you must take care of priorities.
How do YOU intend to spend your refund? Do you need help prioritizing? Email me, MelissatheCoach@gmail.com and I’ll be glad to help you sort it out!