Did you get a tax return this year? Now I know from past experience
that when I got a tax return, the first thing that I wanted to do was to
spend it. Even before I got the tax return in my hot little hands I was
already thinking about what I wanted to buy.
So, I ask you, are you planning on saving it, spending it,
splurging it or savoring it?
I’m pretty sure that you’ve already decided what you were going to do
with it as soon as you knew how much you were getting back from the Federal and from the State.
I’d like to offer a few suggestions on what to do with that money.
You should definitely save some of it, spend some of it, splurge some of it
and savor some of it! Are you thinking WHAT! That sounds crazy, so let me
explain why I would say those crazy things.
SAVE IT!
You should always have a savings of some kind for emergencies like: unemployment,
medical emergencies, automobile repairs (emergencies), etc. You just never know if
and when these things could possibly happen and the worst thing that could happen
is that you are not prepared to take care of these unexpected emergencies. I can
guarantee that you will sleep much better at night if you do have a small savings in
place.
Now what about SPENDING IT? What I mean by that is to pay off a small portion
of debt that you might have like credit cards or a credit line or car loan. Those are
just some of the kind of debt that you could have, of course there’s always more
kinds of debt out there, but the idea is to take a small portion of your tax returns
and pay a small amount towards your debt which in turn gives you the sense of
relief that the amount of debt is getting smaller. The amount that you should pay
is totally up to you, you know what is comfortable for you to pay.
Ah…SPLURGE IT! Doesn’t that sound like fun? It sure is! You have to enjoy some
of the money that you have and have worked so hard for. I can tell you from
experience that if you don’t use a little of it to splurge on something that you’ve
really wanted for a while, you will end up using other money that wasn’t intended
for splurges to make that purchase. So treat yourself at least once a year on
something that you normally don’t buy.
Last but not least, SAVOR IT! Yes, just like savoring that amazing tasting dessert
that you love to eat and you take you time eating it and tasting it in your mouth:
take a portion of your returns and make it last for a few months, using it a little at
a time and enjoy the little things that you can do with it. Just knowing that you
have that extra cash to do what you want with it over a period of time, will give
you a great feeling of enjoyment and will make you smile.
Aloha,
Janin