My Story: The Tax Refund That Keeps Giving
contributed by Debora
10 Ways to Put Your Tax Refund to Work
How to Spend a Tax Refund
Maximize Your Tax Refund
Thinking of what to do with your refund? I have been doing just that. Visions of a winter getaway, wishes of an updated wardrobe, and longings for a weekly housecleaning service all flood my thoughts. Then, reality sets in and I conclude there is a better solution (for my family, at least).
As I think, and think and think some more, I ask myself one question. What weighs the most on my mind? Is it taking a trip, having household help, or getting a makeover? No, not really. What I think about more often than not is how do I "stretch" our dollar(s) to go further? How can it be done, starting with this tax money? Well, I started thinking first of credit card debt (as many people do).
We can pay down a least part of our credit card bills, which should help to a certain extent. But are there other ways or means to cut down on expenses? How about those quarterly (and maybe monthly) bills that could be paid in an annual lump sum? Well, there is our son's life insurance policy (which is usually paid in quarterly payments). That is a good choice, and the insurance company even gives us a price break for making the annual payment. Ok, that's a good start. What else? Our auto insurance can also be paid annually, rather than intermittently. Next? How about checking on our trash pickup service? It is also a quarterly bill.
It doesn't sound like much, but a total of just these three bills adds up to over $600. Now we can take that amount of money and use it to pay down other more substantial bills throughout the year. Or start that emergency fund we have been contemplating. Maybe save for our nine-year-old son's future "set of wheels" (have mercy!). Well, maybe a down payment on it anyway.
When we take care of these bills that must be paid anyway, it does give us a bit more breathing room. We can save for a future event, pay extra on present bills, or just be prepared for life changes.
"My Story" is a regular feature of The Dollar Stretcher. If you have a story that could help save time or money please send it by mailto:MyStory@stretcher.com
Take the Next Step
- Get the biggest tax refund possible at Turbo Tax
If you enjoyed this article you might also want to check out:
Share your thoughts about this article with the editor. Just Click Here and tell us what's on your mind.
Trending on TDS
- How to use the home loan comparison calculator
- Taking over your parents' finances
- 8 job hunting myths
- Salary negotiation for the common person
- Managing money during different stages of life
- How a little education could save you money or even make you money
- How investing style changes over your lifetime
- 5 poor ways to save (and how to do better)
- What to do if your credit card rate goes up
- 3 steps to rebuilding an emergency fund
- 5 big bills you can cut fast
- Money-saving secrets of the rich and frugal
- Reduce your debt with this free debt course by The Dollar Stretcher
- Reduce your debt payoff time
- Find a better credit card rate
- Get better savings & MMA rates