Shopping malls and other stores are ready for the big rush of people coming in buying everything they ever wanted with their tax refunds. Yep. It’s that time of the year all over again.
I mean we all know the kind of people who get tax money back and spend it all within the first week. The lump sum of cash is like hitting the lottery for many people. Seeing their money come in brings about great emotion and just like that the money can go just as quick as it came.
We all know those people who decide to buy things they can’t typically purchase with their day to day funds like flatscreens, new cell phones, furniture, or luxury cars. We know some people who turn into the REAL Santa Clause and give gifts and money away because they weren’t able to at any other time of the year. These people are common while anyone can do what they want with their money; the point I’m trying to make here is that getting taxes back can often times go downhill.
Tax season is a time where people often enjoy the illusion of feeling like they have money. Biggest problem is most people spend it as soon as they get it instead of using it as financial leverage.
Having a large lump some sum and using it properly can give you a financial head start to a new you when it comes to money. Ok sure, you’ve been working hard and you deserve nice things. But what if you use your taxes to put yourself ahead of the game.
Like, what if this time you did some research on finances and sat down with yourself. What if you created a financial plan and stuck with it? Setting financial goals may just change how you view your taxes this year. Nonetheless I’d like to give a few examples of things to do this tax season.
Fix Your Credit
There’s a phrase going around that says “Credit is the New Money”. This saying directly encourages people to take action with their credit because in all honesty credit can open some doors you never thought could exist in your life. It could help you to create passive income or even help you start a business. While many people think all debt is bad when in all reality, it isn’t. There is a such thing as good debt.
Though the intent of this article is not to explain this, knowing the difference is critical. Bad debt is debt makes you poorer. It’s just another bill. But good debt is debt that you get in that produces cash flow for you.Ironically this brings me to my next point.
Invest in Your Financial Literacy
Reading and listening to financial audiobooks, listening to podcasts, and attending financial events can really change your financial lifestyle. Learning about how people get and stay wealthy should be an interest if your current financial lifestyle doesn’t get you the things you want. Therefore the only way to beat your old financial habits is through new ones. Of course everything’s a process but your financial freedom is indeed a process worth pursuing.
One person I personally like to keep up with is Robert Kiyosaki. He’s the Author of a famous book, Rich Dad Poor Dad—an absolute MUST READ. Robert has tuns of content out there talking about how he use to live in his car to making millions of dollars monthly. (Free game)
Build Your Emergency Fund
It’s okay to have a little in the bank, no seriously, it really is. Have your own back!Saving money for a rainy could literally be the difference between getting in a financial rut and surviving. With this I’d advise that you find the highest return on interest. In all honesty banks don’t have too many pennies that they’re willing to share but some have higher interest rates than others.
Purchase Life Insurance
The way people are dropping left and right is absolutely scary. But what’s scarier is the lack of life insurance. Too often we hear and participate in Go Fund Me accounts because no one had life insurance. Believe it or not, for many families it was life insurance that created the first bit of generational wealth. It kickstarts families into there wildest dreams at times. Although people never consider life insurance as an investment, the right policy can build funds for a future rainy day. Sit down with an agent and get educated on the perks of life insurance.
Invest
This year let’s follow this simple rule. If it doesn’t make you money or put you in a position to make you money, it doesn’t make sense. This year purchase things that will make you money. Purchase investments. I’m not saying it necessarily has to be stocks and bonds. I’m just saying make it make cents.
This year let’s do things a little different. Let’s set some financial goals and get ahead. I’d advise sitting with someone who is more financially savvy than you and taking notes. Build a relationship. Make a commitment. You got this.
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