Knowing exactly what to do with your tax refund can be a little overwhelming. If you're in debt, you might feel guilty about putting it anywhere but towards the debt or you might feel justified to just go "blow it all". Here are a few ideas that can help you make the most out of your tax refund without the guilt:1. Always have a little fun. You don't have to put 100% of your refund towards paying off debt. Set aside a little and designate it specifically for a fun activity.
2. If you don't have an emergency fund, this is a great way to put your tax refund to positive use. We recommend that you have at least $1000 in an emergency fund so if you're getting a lump sum refund, this is a great way to boost that quickly.
3. Never spend your whole refund all in one place. Not only will it make you feel better to have spread it around, it allows you to take care of multiple expenses whether they are debt obligations or things on your wish list.
4. Don't forget to put at least some of your refund towards debt. You don't need to use all of it (and shouldn't!) but paying down a portion with a lump sum refund can help you get to your goal faster and will give you instant relief after having done so.
For more information on how to effectively use your refund or other debt management strategies, I invite you to schedule a free 30 minute coaching call with me today.