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Tax season is here, and everyone is out shopping. Instead of using all of the money at once, find some ways to make that tax return stretch and help you throughout the year. It is a crazy time we live in right now. Expenses fluctuate monthly as prices change across the country. Be smart with your tax return and reap the rewards all year long.
Ways to Make Your Tax Return Stretch
Tax returns give you a large lump sum of cash that can be a serious help to you financially. Whenever you have the opportunity to lay hands on a little extra, the temptation to go out and blow it is so strong. There are a million things to do with the extra money, but what if you spent it wisely instead? There’s nothing wrong with that right? What if you could make it so you could come up with ways to make your tax return stretch so the benefits of your tax return last you all year long?
Choose to save
Saving your money is one of the greatest ways to make your tax return stretch. Bolstering up an emergency savings fund, putting that money in a college fund for your kids, or just having a little extra to help with the bills is excellent. Many people take that money and party with it. By the end of the month, they have no money and nothing to show for it. You won’t be one of those people.
Spend on good things
If you find that you’re in need of a few things around tax time, using some of the money on wise things is another of many ways to make your tax return stretch and benefit you all year long. Is your car making a funny noise? Taking the time to get that looked at now can save you on costly repairs later in the year. If your work wardrobe is old and outdated, now is a great time to make it look better once and for all.
Subsidize a bill
You can’t lower your rent or mortgage, but what if you used some of that extra money you’re getting to subsidize that bill? Think about it. If you take $1200 of that money and keep it stashed away to take $100 off of your mortgage every month, you have definitely found a way to make your tax return stretch. $100 doesn’t sound like much, but that’s $100 that you don’t have to work hard for, and you can use that extra money each month for necessities or take care of the debt.
I used to pay 6 months in advance for rent but also still pay half the normals month rent each month. This way the other half of the monthly rent was being taken out of the credit. Doing this allowed me to pay $400 a month in rent versus the $800 each month. It was a huge difference in my budget and one of my favorite ways to make your tax return stretch.
Your tax return is going to give you just a little more wiggle room in your budget if you use it wisely. Take that money and make it work for you all year long. What’s your best tax time tip?
Here are some great options to take if you’re looking for some more ways to make your tax return stretch.
1. Save that money – Hide it if you need to.
2. Pay down debt to free up cash– Write out all your debt and pay off the smallest first. Call the company and try to settle for a lower amount. Majority of the time they will accept it.
3. Subsidize a monthly bill – Put a credit on accounts that will allow you to so your monthly expense is lower.
4. Buy a big ticket item that will save you money
5. Invest in your business
6. Start an emergency fund– The best option for this is $1,000 set aside as an initial emergency fund.
7. Make repairs on the house– Update the water heater or other appliance that needs help.
8. Split the funds between fun and financially responsible
9. Enroll the children in an after-school program
10. Get extra liability or homeowners insurance
11. Start or boost a college savings account
12. Prepay your vacation
13. Donate to charity– Give back to your local Church.
14. Go back to school
15. Get new family photos
16. Buy a gym membership– hitting the gym may seem like an extra but it has been proven you feel better when you are taking care yourselfsef.
17. Stock your pantry well
18. Purchase new tools
19. Fix up the car
20. Purchase high-quality furnishings