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How To Spend Your Tax Refund Wisely

tax refund

Enjoy Your Refund!

Tax season is here and to many of us that means one thing… Tax Refund!

I know there’s a debate whether we should be getting a refund or changing our withholdings to get more on our paychecks, but that’s a discussion for a different time.  Let’s not rain on anyone’s parade and let us enjoy our refund for now.

We all enjoy getting a tax refund.  It feels like we just won a scratch-off.  One of the reasons we love tax refunds so much is because we like to spend money and this is extra money that we can spend freely… or so I thought.

I used to buy all kinds of stuff with my tax refund – I bought my motorcycle with my tax refund – and it felt good for a few weeks.

That good feeling slowly faded when all that money was gone and I still had debt and almost nothing saved.

If this sounds familiar, here are a few suggestions on what you can do with your tax refund that makes you feel good for a long time.

Save Money Like A Janitor

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Pay Yourself First

Last week I read about Ronald Read, a Vermont gas station attendant and janitor who was able to stockpile an $8 million fortune.  He passed away last year at the age of 92, but very few people knew he had that kind of money.  That is until a couple of weeks ago when he left most of his estate to his local hospital and library.

Mr. Read left $4.8 million to the hospital and $1.2 million to the library.

According to reports, he was a very humble person who drove a second-hand Toyota Yaris and who never splurged except on a daily cup of coffee and an English muffin with peanut butter at the Brattleboro Memorial Hospital.