Put your refund to work on achieving your financial goals
For many, tax season adds another stressor to an already busy life. Add in an uncertain economy and continued concerns about inflation, and the financial angst starts to feel all too real.
But it doesn’t have to be this way. In fact, making the most of your tax refund can set you up for success in reaching your financial goals. And if you already have a sense of what your refund will be, that makes planning ahead all the more doable.
Primerica’s most recent quarterly survey found that despite the turbulent economy, middle-income Americans are off to a great start this tax season. About 60% expect a refund this year and among those who anticipate owing taxes, more than 80% don’t expect to have problems paying them.
Even more encouraging is that more than 70% of middle-income Americans plan to use their tax refund to pay down bills and other debts, a key step to creating the flexibility to pursue financial goals.
It’s never too early — or too late — to start planning what you’ll do with your refund, or how you will pay any taxes you may owe. For those receiving refunds, in addition to paying bills or paying down debt, another great approach is to put this money into a savings account, boosting your “rainy-day funds” and giving yourself that extra security to handle unforeseen financial issues that crop up. Luckily, one third (33%) of survey respondents said they plan to do just that.
You could also consider using your refund to invest in your future by putting the money toward saving for college, purchasing a home or car or preparing for retirement. Whatever you choose to do, being intentional with your refund will help you get the most out of it.
Equally as important for what you plan to do with your refund is what you should not do. Treating your refund as a reward to be used on shopping splurges or expensive vacations can actually cause more financial stress for you in the end. The real reward you want to keep in mind is achieving your long-term life goals, and that typically requires achieving financial security.
And if you’d like help figuring out what to do with your tax refund, you may want to consider reaching out to a financial professional who can help find the right financial game plan for you, whether that’s paying down debt, securing your savings or investing in your long-term dreams.
Either way, your tax refund is an opportunity to achieve your financial goals — don’t let it go to waste.
Looking for more tips and to hear directly from the experts? Be sure to check out Primerica’s special LinkedIn Live on Thursday, April 6 at 1 p.m. EDT, featuring Amy Crews Cutts, Ph.D., CBE®, economic consultant to Primerica, and Estee Faranda, CEO of PFS Investments.
