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 If your work wardrobe is old and outdated, now is a great time to make it look better once and for all.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?
Related: 19 Things to ALWAYS buy at Dollar Tree To Save You The Most Money
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
Cia Black says
These are fine examples of spending wisely. We are homeowners so we always try to put have in savings and the other half back into the home, to raise our resale value. Eventually we will downgrade when the children all grow up and move out, so we are investing in our future.
Kristy Bullard says
I am currently getting all of our tax information together to take for the accountant. I really needed this! Thanks for all of the suggestions and reminders!
Niki says
These are really great examples of making your money do the most for you! And, some of these things, I haven’t even thought of!
Quirky Homemaker says
Don’t, don’t, don’t forget about your retirement!!!! It’s never too early to save for that. Believe me. I wish I would have started saving earlier. Take some of your Tax return and start investing in a Roth IRA. The sooner the better. Otherwise, these are all really great ideas!
Twinspirational says
These are great ways to save money. As ex-investment bankers, we learned to live off our base salaries and save the bonuses for a rainy day.
Gladys Parker says
Awesome suggestions. My favorite are save and buy any big ticket items (only if you will be replacing them anyway.) Saving can be a very hard thing to do, although it generally gives you the biggest band for your your buck. I always put repairs first, big item, some fun money then save it is what works for us.
Karla says
Great tips! We have a lot of expenses for the past months. This really helps!
Nicole Shillings says
These are great ideas to maximize your tax refund. I usually advise my clients to pay off any credit card debt or invest it in their retirement plan if possible.
Kristi Ann says
Perfect timing for this post as I just got my money back!! These are great ideas!
Kelly Edgar says
I love this advice, tax return is the perfect time to start saving and investing money. Setting priorities is essential.
Emily says
Lots of great suggestions here!
Lisa Rios says
These are some wonderful tips! I will keep these in mind. Taxes are always stressful for me
Rebecca says
Great tips for saving money, planning for a rainy day, or how to get pay down some debt. Thanks for a great read.
Rachel says
If we were to actually get a tax refund we would save and do some home repairs. We haven’t gotten a refund in a few years though.
Melinda says
Great ideas! We spent years spending every tax return on paying off debt, until we had payed it all off. Now we are able to put money away each month for an emergency fund and now we get to have fun with our tax returns!
Elizabeth O says
You provided brilliant tips here for money saving and getting the best out of your tax return. I like the idea of starting an emergency fund.
Marielle Altenor says
Great tips! Especially the part about paying down debts to free up cash. We started doing our tax last week, and I just wish I had kept all my receipts!
Tara says
i’m totally one of those that needs to hide it in order not to spend it!