Cut Costs… Do them Yourself!
First off, Don’t let money cost you more money. If you have the ability to understand…Do your taxes yourself. This is an entirely different era from when Mom and Dad took their taxes to the local tax clerk, HR Block, or the family friend. If your tax situation is relatively the same from year to year, save yourself the money. With the internet, much of the online services allow you to do your income taxes yourself. You have Tax software like Tax Act, Intuit Turbo-Tax, H&R Block online, etc. They practically spoon feed you the information and walk you through step by step. If you come across a problem …”Helllllooo”, Google it! Take advantage of today’s technology. More than likely…there’s nothing you’ve been through last year that another person did not encounter. Why pay someone else who will use the same technology.
Use Your Refund Wisely
If you get a tax refund … what will you buy? A big TV, a couch, or will you order good-food 30 times? The usual… How about investing that money in yourself. You are your own biggest supporter. Whenever you get a tax refund/ bonus, you want to invest a third of it in yourself. Yes, you should treat yourself when extra cash comes around, however over-“treating” yourself could translate into robbing yourself at a later date. Lets’ say you are fortunate enough to get a refund of $2100. 1/3rd of 2100= $700 which needs to be invested. Take another $700 to address immediate needs: bills, credits, loans etc. The remaining $700 you can use at your discretion.
Invest a Portion
Next, you want to invest a portion. Take that $700 (or 1/3rd) and make it double. You have to increase your streams of income. Do you have a side hustle? Maybe its fashion, food, or an art craft. Take $200-300: Buy an item that can make you money like T-shirts, a camera, baked goods, a lawn mower, paint, hair styling products, interior design etc. There’s a service you can offer that particularly makes you…you. Take the other $400-500 and do something you’ve never done before financially.
Short-term: You could take the entire refund and use it to buy a home. Mid-term: Learn How to Buy Stocks. Long-term: Buy a savings bond. Nobody likes the thought of locking up cash for a set period of time, but that’s what you need to do. Yes, You may need the money in the near future… but don’t you always find a way to make do? You have to convince yourself that the saved money isn’t there anymore. PRACTICE discipline. If you would put away $400 into bonds every 3 months and let them mature annually… each quarter the next year, you would receive a check from yourself for $400 with interest. Now that’s thinking ahead. Bond rates are spiking as the economy seeks to stabilize and you can buy them directly from the U.S Treasury. Bonds are government backed securities that basically says: “Invest now in our banking system, and we can pay you back even more later.”
An investment isn’t just something monetary related, it can be in education. For example, you can invest in a certification or license to start a business. Whatever direction you are leaning in, make the investment into a vehicle that can payoff later.
Practice Patience With Your Money
Lastly, building your money will take patience. Do not get your take your refund early and take a penalty or loan. Patience is a consistent trait of the wealthy. You have to stop putting an immediate time expectancy on your refunds. Give your investments need time to make you money. Nothing is immediate when it comes to investing. Investing will ALWAYS pay you back if you’re patient. Your tax returns can jump start your financial goals.
We have to capitalize or attempt to transform every seldom monetary opportunity into a long term benefit. For every tax refund in your life, there should be physical reminders around you in which you can say derived from that year.