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Spending your tax refund

Hooray! You completed your taxes and you're getting a refund!

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The important part - what are you going to do with it? If you're like most Americans, you're going to blow it on something you've had your eye on...that you don't really need. While the idea of that is fun in the moment, take some time to think of other ways to spend your refund.


Set aside some fun money. Look, we're all human and we want to blow a little money on something fun and frivolous. And you should. When you feel like you're locked into everything and can't have fun, you won't want to continue. So take $50 - $100 of that money and have a little fun, enjoy a nice meal, whatever it may be. The rest? Well, here are some options:

  • Pay off / pay down debt

  • Invest.

  • Start a Roth IRA

  • Put it in a high yield savings account.

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Do you know you're going to need a new computer, new appliance, new roof, new car, etc? If you foresee having that expense in the next year, go ahead and save the money, let it earn some interest in the interim. Your future self will thank you for not having to go into debt to purchase that item.

Do you have a big trip coming up? Maybe a wedding or a honeymoon? Do you know how much MORE you will enjoy your vacation knowing it is already paid for and a giant bill isn't waiting for you to get home and wonder, how the heck am I going to pay for this? Put the refund towards the trip!


I get it. You think it will be so much more fun to blow it on a big TV, or a fun add-on to your car, or that designer bag you've wanted. I challenge you to save for those things, be wise with your money now so you can have the financially secure future you have wanted.

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