Well it's now February and many of you have either done your taxes or will be doing them in the next month or so. So let's talk about what you could do with your taxes instead of buying a bunch of new stuff.
Pay off debt: This may get some eye rolls as you probably thought I'd say it. Seriously though, look at the debt you have and the interest you have on those debts. Are those interest amounts higher than an interest mortgage this year of 3-5%? Well then you will be paying more in interest long term than if you pay it down with your refund. How? As of February 4th the interest rates of a 30 year mortgage on average were at 3.671%. Now this is nothing compared to your credit card that is at an interest at 20% or possibly higher. If you don't take care of your debts, you'll end up paying more money in interest which may take you longer to finish it off, if you don't pay enough per month to cover monthly interest. Unlike a mortgage you can't refinance a credit card. Your choices are, pay it down/off or you let the interest build to where you feel overwhelmed. So why not pay off the debt while you have the extra bit of cash so you can try to get a hold of your finances. This includes student loans too. We all have heard the horror stories when you suddenly can't make your payments on those.
Put it in savings: You will thank yourself later if you have extra in savings when that unexpectant expense comes your way no matter if it's the car, cut in hours due to pandemic, loss of job, and so forth. So why not try to make sure you aren't the person who is on the side of the road with no avenues to get out of that struggle. The best is to have at least 6 months of expenses saved in case of a life changing event so work towards that. It'll be a great feeling knowing you have the money if you need it.
Invest in yourself: What? No I don't mean new car, or purses. I mean invest in a skill that you may need, or invest in a gym membership to help you reach your weight goals. Invest in something that gives you a new skill for your future or a way to reach your goals. Investing in yourself gives you confidence and the drive to continue forward that can not be overstating. Again, Ladies, I do not mean go buy a bunch of makeup. Look at your life and decide what skills could help you better along this route. If you want to be a career woman then find certs or classes to get you new skills. If you want to be a homemaker, invest in cook books, sewing, child care classes, or budgeting classes that will bring value to you being home.
Invest in your appreciating assets: The key word here is appreciating. Like a home, Not a car you buy and then depreciates 20% after you drive it off the lot. Instead, if you have appreciating assets, like certain stocks, or a home then invest in those. The more money into them, then the more money you can sell them for later on.
Donating money: This is always a possibility as the idea is by giving to others than you receive. While I may not agree with this being the reason you donate, if it's what you want to do, then go for it. Even if you aren't expecting anything in return and just do it to help people in your society, then give a little. You can either donate your time or go out and get food to give to a pantry or a shelter. Ask around first to make sure what you donate will actually be used as it's suppose to.
Invest in tools: I don't mean go out and buy a chainsaw if you don't need one. I mean look at your job or your side hustles and see what could make things easier. Would a new computer help your blog efficiency, or a better camera help your YouTube? Maybe new tools would help your construction business? Figure out what would help you to push you towards your goals and invest in a better model to make your life easier. After all, time is money. So if you save time by your computer not taking 5 minutes to start up then that is five more minutes you can make money with.
This is a fun post more about looking at your life and using money wisely. I hope this helps and these are only suggestions. You never know, these suggestions may help you more than you know. As always, take hold of your future.
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