Ye Tax Refund Cometh!
Well the holidays will soon be over and we move on to the next realm of human existence...TAX TIME. For some - dreaded.. for others - bonus!
And for the lucky bonus class, the age old question exist.. what should I do with my refund? Most financial advisors would advise you to save it, some would suggest you do those more important “financial” things with it, and others say treat yourself.
We like the latter. I mean it’s important. Here’s why. Normally you should never mingle your “only in case of emergency” money with your everyday spending cash. But it requires serious discipline. And let’s be honest it’s hard to keep from dipping into a cash stack for those “just this one time” purchases. So, instead we say use your Uncle Sam gifted savings account to fund those purchases.
Still undecided? Then how about taking the half and half approach. #10 in the U.S. News and World Report Article “10 Smart Ways to Spend Your Tax Refund” states that you should “Be half smart.” The article says, “If the idea of being practical with your money is killing you, that may not be an unreasonable feeling if you always work hard and never seem to get a break. On the other hand, maybe you always feel behind financially because you never do smart things with your money. Still, if you're conflicted, you could split the difference. Most experts suggest taking 10 to 25 percent of the refund and using it for fun, such as a vacation or shopping spree.”
So, should you be refunded... well... treat yourself. Whether wholly or in part depends on your financial senses. But, bottom line. Don’t deprive yourself.