December 26, 2016

How to Use Your Tax Return

Expecting a large tax return this year? Already have your tax return but just don’t know what to do with it yet? That’s great! Keep reading to find out the best way to use it to YOUR advantage.

While it would be nice to throw out last years summer close and hit the stores for a new summer wardrobe, it may not benefit you as much if you do that. The average American spends more money on clothes and new items like TV’s, computers, cars…that their income can’t keep up. Why else do you think almost every person old enough to have a credit card or take out a loan is in debt?

So if not on new clothes, what should you do with your tax return? Well, there are many things you can do with it depending on how much you are getting back. If you have yet to set up a budget, I would recommend doing that before you spend any more money. This will help you know where your money is going to right now. Also I suggest you to deal with Tax Attorneys in Dayton OH.

Once you have your budget set up and in front of you also pull out how much debt you are in. Make sure you know how much you owe on all of your credit cards, loans….anything and everything you owe money on.

Along with having your budget and debt in front of you, perhaps it’d be good to write down different things you want or need. Do you have kids and wish you could take them on a vacation? Does the car need repairs? Has it been a long time since you’ve been able to get away from your busy schedule to relax or take your sweetie somewhere nice? Create a small list of things you’ve been wanting or needing but just haven’t had the time or money to do.
Once you have all of that together, you are ready to begin. Receiving a tax return can be a good time to redo your budgeting plan, take out things you really don’t need so you can put your money where it really counts. It’s also a good time to knock off a bill or two that have been eating at you for years.

If you are getting a small tax return, $100 or less, and you’d like to use it in a way that’d really benefit you there are two ways you can use it. One is to take a loved one out on a date. Just go out and have fun for a change. Whether it’s going out to eat, bowling, fishing…something the two of you can enjoy for an evening or day. Find some place cheap to eat at so you can make your money stretch further so you can also afford to take them to the movies and out for ice cream afterwards.

The second thing you can do is to help you pay one or two of your bills for a month. I’m not saying to let it replace what you’d normally pay but to ADD it on to what you normally pay each month. Let’s say you have a credit card bill that you pay $25 towards each month. Use part of your tax return to double that payment for that month so you pay $50 that month. That will knock off one month in the end that you’ll have to pay on your credit card.

If you are getting a large tax return, (which I consider anything over $100), then you have more options on how you’d like to use your extra money. My suggestion is to do what I’m doing this year. My debt is not that much, mainly because I worked my way through school so I didn’t owe any money, but also because I watch my spending and only spend what I have. The main reason I even have the debt I currently have is because text books I had to pay up front rather than spreading it out over the course of the semesters. So my tax return is going to be used to completely knock off my credit card balance so I’ll be debt free!

Most people owe a lot of money though. They take out a loan for the house, another for a car, they have multiple credit cards, not to mention the fact that Best Buy lets you purchase expensive TV’s, computers, sound systems, and the works, but keep it all at a low (meaning Best Buy will own your soul for another 10 years) monthly payment.

So what do you do with a $500 tax return when you still owe Best Buy $300 for a TV you bought 3 years ago? Instead of spending another 18 months paying them $25 a month (because by then your $300 turned into $450 which means you paid an EXTRA $150) completely pay off the $300 you owe them, saving you $150 in interest that you WOULD have spent, plus the $200 you have left from your tax return.

Then what do you do? You still have many options. If you have another credit card or loan that the $200 extra would knock off, then go ahead, do it! If not, then either use it to help pay extra on your bills that month, take a mini vacation (taking a break from a hectic lifestyle will improve your health so this would be a good option), or put it away for a later date.

If you took that $200 and put it into a savings account, and each month for the next 18 months put $25 in there that you now have extra since you paid of what you owed Best Buy, in 18 months you will have $650 PLUS the interest the bank will give you. You could use that money for a vacation, you could use it to pay for Christmas presents so you don’t put those on a credit card like post people do, or you could use that money to pay off other credit cards or loans!

As Americans, we have been brainwashed to think that extra money means we should go spend it all. Do you really want to do that? Look at how far it’s gotten people. Sure, they have lots of nice stuff, but they are also more in debt than their income can handle. The extra money you have should be used to help pay of debt and spend time getting a break from a hectic lifestyle, not going out and buying new gadgets. We should be more worried about freeing ourselves from the bondages of debt, and taking care of our health.


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December 20, 2016

What Does A Tax Attorney Do

Watch This Video For Details.

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