So for an unprecedented number of years (every year since I started to file), again I will get a fairly decent tax return. Woo!
(And I know it shouldn’t be Woo! because you are giving the government a tax-free loan of your money and wouldn’t it be better to have it in your pocket the whole year and it’s not really bonus money because it’s actually your money. Yes to all of that)
But I do have this money upcoming hopefully this week, and it is about $750.
What’s the plan you ask?
I’m going to spend 10% on something fun, and put the rest into my tuition goal. I try to use at least a small amount of my refund on something for me just so I don’t feel deprived. It is important to not go over board on this! This money is actually yours. So if you put it towards a savings goal, paying off debt or even putting part or all of it into your retirement fund, it can have more benefits for you in the future! Paying off your debt is likely the best financial plan with your tax refund because you save yourself from paying extra interest on the paid off debt – your money goes farther! Also putting that money into an RRSP will have benefits for you next tax year if you can claim the deduction on your income.
So certainly have some fun with the tax refund but like controlled, 1 drink before I drive home fun, and not, where am I and who are you in my bed fun (financially speaking).
As I reach closer to my goal I’m getting more and more motivated and I really want to capitalize on this momentum. I have over $4200 of my $6000 goal or 70%!, and the extra 675 will put my total to over $4875 or 81.2%!
This will put me one month ahead of my savings plan and if April and May go as well as the rest of the year, it will mean I will meet my tuition goal in May! This is a full 3 months ahead of my schedule 😀 And this means that I will have an extra $1800 in those 3 months to put towards other financial goals. So Woo to that too!
What are you doing with your tax refund?