One thing you need to know is that the tax refunds money is not free money. You have earned that money and going on a reckless splurging spree might not be a good idea especially when you have debt on your name. I recently received my tax refund and found myself thinking, how to spend the tax refund money.
The big spender in me, started thinking about all the material things which are probably not that important. Then, I remembered that I could put some of that money towards my debt.
Here are some tips if you are wondering how to spend the tax refund money:
Pay Off Debt
This applies to you if you already have debt in your name like credit cards, personal loans and clothing accounts to name a few.
Here is a tip I use I have a different account that I use for savings. I move the money that I want to save completely out of my daily account put it away, this method works because I will not be tempted to spend it.
Pay off Bills
Since my blog is self-hosted, I found it easily to pay it of yearly, instead of monthly debit. This helps with giving me breathing space. You can pick a bill that is less than 100 hundred and just pay it forward.
Buy Shares/Invest it
This is another way of saving and growing your portfolio of investment. There are companies like Easy Equities that enables normal people with like me and you to invest from as little as R50.00 without third party fees and stuff.
I have been on a debt free journey for a while now and the reason why I started my debt free journey was my children. Starting this journey, I had to face the reckless behaviour I had with money.
Have your why with everything you do in life either to pay off or starting a business. Your why keeps you motivated to accomplish the goals you have set.