GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
you’re free to read more about oureditorial guidelinesand our products and servicesreview methodology.
20 YearsHelping You Live Richer
Reviewedby Experts
Trusted byMillions of Readers
Atax refundmay seem like a financial windfall.
This strategy helps build long-term security while offering immediate joy.
Hereshow you should split your tax refundbetween fun and your future.
Rose also recommends writing a Joy List before receiving the tax refund.
Select something that seems fun and aligned.
She explained, Intentional spending brings joy.
Mindless spending brings regret.
Match the future portion to your most pressing financial opportunity, Forman said.
This means if yourepaying high-interest debt, make an extra payment.
Address what most urgently needs to be addressed.
Pick a meaningful splurge and set a dollar cap.
A weekend trip, new gear or a spa day are a few examples.
Taxpayers who receive a small refund can also follow Formans formula.
Think impact, not amount, Forman said.
Use it toward a goal.
Use it to fund a future weekend getaway.
Knock out one bill or save it.
If theres a chance youll owe money next year, apply your refund toward next years taxes.
She said, Paying off debt is fun because it reduces stress.
However, if ones idea of fun includes other activities, Musson recommends investing in joy.
Then, you’ve got the option to avoid buying coffee drinks and make your own.
If you love coffee, youll appreciate your espresso machine every single day.
A refund isnt free money,' Burnette said.
It is a return of your money from the government.
You gave them an interest-free loan and had to request it be refunded.
As debt is repaid, the allocation to retirement, savings and other financial milestones can go up.
More From GoBankingRates
Share This Article:
