What Not To Do With Your Tax Refund

For some people, getting that tax refund is like getting an excuse to go out and waste money. And, while that can be tempting, the truth of the matter is that a tax refund should be used responsibly and in such a way that it will make your financial situation better, not worse. So, with that in mind, here are a few things that you definitely should not spend your tax refund on.   

Don’t Spend it on a Big but Unnecessary Purpose

First things first, don’t do what a lot of people do, which is to go out and finally buy that new television or that new computer they’ve been dying to have. This kind of thing is only going to give you temporary satisfaction, and, once that passes, you’ll be left with nothing. Use your money to benefit your life in a meaningful way, not just to buy something “cool.”

Don’t Just Stick it in the Bank

If you get some extra money from your tax refund and you decide to put a portion of it in savings, that’s great and responsible.

Don’t, however, just stick it in your regular checking account. When you do that, this money has a way of disappearing a little bit at a time, and, before you know it, it’s all gone.

Don’t Use it to Create New Debt

One big mistake that people often make with their tax refund is using it as a down payment on an expensive item, like a car or a boat or a vacation home.

When you do this, all you are doing is creating new debt. Sure, that down payment is taken care of, but now you have to pay on your new item each month!

In short, don’t use your money to give yourself more money problems.

The bottom line is that your tax refund should be used responsibly. Put it in savings. Start a savings if you don’t have one. Pay down debt. Just do something worthwhile and beneficial in the long run, not something that you’re going to regret soon after!