It’s that time of year where people eagerly await the mailman to deliver their overly anticipated W2s. If you are one of those anxious W2 recipients, it’s safe to say you’ve overpaid your taxes during the previous year (in this case 2018) in some way, which may not have been necessary to do. (I’ve written and spoken about those cases on more than one occasion. If you’ve missed it, check out recent posts HERE and HERE) If you’ve been dreaming for the day when W2s are in your hands, you probably have a mental shopping cart full of all of the things you’ll buy and flex for the Gram.
The IRS estimates the average tax refund to be $3,000. Let’s do some quick math. If you’ve received a tax refund in the past 3 years, according to that estimate, you would have $9,000. If you’ve received more than that for the past 3 years, do your math, and truly think on the money that’s been in your possession and that you’ve had access to. Now go one step further and check your savings account? Do you still have the money? Do you still have the clothes, cars, rims, or other bullshit that you spent the refund on?
9 times out of 10, the refund check is gone and more than likely, it was spent before you even had it in your account. Please don’t get me started on the amount of money you freely give away in fees and interest in order to receive the refund advance (in some cases, the amount is close to 30 percent!). In reality, if you haven’t been good with managing your money, you won’t automatically become a money expert once you receive a lump sum.
So before you blow those racks, let’s consider 7 places you can put that refund.
You have options when it comes to your money. Keep in mind, you’ve lived without the money for 12 months, so it is clearly money you don’t need to survive, so you can afford to be smart.
Making sure you make the best decisions for you and your money is key. As always, if you’re not self-employed, avoiding a tax refund all together is quite possible. Getting your refund throughout the year in each check is an available option, rather than waiting for it for a whole year, each year. For more information on how to increase your monthly check, visit: PayCheckBump.com