Ballerific Finances: What To Do With Your Tax Refund

Tax season is in full effect.

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Somehow Uncle Sam slipped up and blessed them with extra funds. In actuality, that’s not the case. Most people overpay in taxes by improperly filling out their tax documents for employment and not claiming all their deductions. So technically, this money isn’t extra money, but more so, it’s your earned money that’s been misplaced. With that being said, getting your tax refund isn’t a time to turn up, but rather a time to do what you would normally do with the money you earned.

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Pay off current debt. Please do this with the quickness. Take a portion, if not all, of your refund and pay off the balances on all ACTIVE and OPEN credit cards, loans (including an auto loan), and any student debt accrued.

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Pay your current obligations. If you live on your own (or split bills with a roomie or significant other), then you know that one thing is always for certain- when the first of the month rolls around, so will the reoccurring bills. Take this opportunity to pay those in advance. Submit advance payments on the light bill, all insurance premiums-car, property, medical, dental, life, and any other household obligation you pay, such as the telephone, cable, and internet. Put “X” amount of dollars on a gas card and save yourself from spending frivolously on gas throughout the upcoming months. The more liability you free yourself of, the more money you can save.

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Pay yourself. If you are free of debt and/or free of obligations, put that money into a money marketing account and/or CD and leave it there. Yes, it would be nice to splurge on those designer duds, but clothes depreciate. The name of this game is appreciation, and you want your money to appreciate in value so that you can one day appreciate a life of leisure and relaxation.

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I know it’s not what you want to hear, but my goal is to help you get off the treadmill and start living the life you want.

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-Niko Rose