Yes
The good old tax refund it's like free money
What kind of but did you know that the average person gets back to $3,000 per year? I can't get it I
Don't think I've ever gotten back to $3,000 even when I was paying the most in interest on my student loans
We're gonna go over five ways that smart people
Spend to their tax refund to really make it last make it last beyond that
Year that you're currently in make it last two years five years ten years or even
20 years if you want we got to do this fast
I'm personally excited about the last one on the list because that's the one that I will be utilizing this year
But before we actually get into that list of five
I need to mention two things the first one is that you should always
Minimize how much you're getting back from the government so if you are getting close to that 3,000
Then you should probably go talk to your employer and get your filing status change because you want to limit that amount of money
Because you're essentially allowing the government to hold your money
interest-free for that full year so if you change your filing status
And they start taking out less in taxes that means they will owe you
Less the next year when you get your refund
I know that all kinds of situations change as well so sometimes you can't always
Plan for how much you're going to get back so for example this year is my first year being
Out of debt my first full year, so I'm not paying any money in interest on my student loans
So I'm not gonna get a tax break for that, but I did buy a house
So I don't know how that's going to impact my filing status
And how much my return is so I will see after this year as to if I'm getting quite a bit
back
then I will change my filing status and do what I can to minimize that that way I can keep my own money throughout the
Year, and I can invest it in other areas that will actually
Hopefully pay me back a return as opposed to the government holding it interest-free for visuals
This is $3,000 in cash the average tax return
I'm about to drop this the second thing is I would
Really highly recommend spending your tax refund as soon as possible now that doesn't mean to spend it in a stupid way
okay, but have a plan for how you're going to spend it and the main reason for that is because
When you don't have the money for that long. You don't really feel like you own it
You don't you don't feel that connection with that money, holy?
fucking smokes the shorter amount of time that you have so
Get it in get it out that way
You don't hold on to it and kind of second guess what you're gonna do with it
Have a plan take action on that plan as long as it's in a smart way
But you'll get us get some smart ideas after we go through this list of five, okay
Let's get into the list of five things that smart people spend their tax refund on the first one is any kind of
general repairs
So think of like your car or your house those repairs that don't really have to get done for example a car
Your car still running, but you know there's a few things that need
Fixed but you don't have to spend the money on but the longer that you wait
the bigger of an issue that could become this is the perfect time to spend that kind of money the second thing is a
Child's educational fund if you have kids, I don't have kids
This is the perfect way to do fun to that account. I don't go fight how much I would spend
Towards funding my kid's education account maybe a little bit, but I never really got anything, so I don't know what I did, okay
Yes, I did. I guess I wasn't a whole bunch of debts. I probably shouldn't be saying that okay
I'll give my future kids a little bit of a Educational Fund, okay, but I'm not gonna fully fund it
They still need to work for it, but that's besides the point okay the second thing that I would recommend is dead
This is the perfect way to spend money towards your debts spend way towards your debts
That way you can move the needle so if you're someone who's been working towards getting out of debt
You're paying money towards your debts every single month kind of chipping away chipping away, and it's moving the needle
But it's moving the needle slowly think about if you got
$3,000 back and you put
$3,000 towards your debts. It would move the needle quite a bit. That would be pretty cool to spend that tax refund on that
On that type of thing now
That's what I did every year when I was in debt is I would take any tax refund that I had and I put it
Right towards my debts
so it was really exciting and is really cool like I said to see that needle move with that large amount of money that I
Could just throw towards the debts the next thing I would recommend is using it towards an emergency fund if you were currently
Saving up for an emergency fund or if you are working towards getting yourself out of debt
And maybe you've had to dip into that
emergency fund a little bit you want to get that fund back up to the limit that you've
Decided that is best for yourself and your family then use some of this
Some of this tax return money on that type of thing if you want to know how much you should have in your emergency fund
I did create a previous video on this topic
I'll put the link down in the description that way you can figure it out
or if you're thinking that maybe you want to get out of debt and
You're looking at that that emergency fund amount that you have to save up and you're like man. That's a lot
this is the perfect way to fund that emergency fund and get it started right that way you get it Fund and
Funded and then you can just focus on getting out of debt and the last thing my favorite number five is
Contributing to your IRA fund. We are allowed to contribute up to fifty five hundred dollars per year
There are some other stipulations if you're 15 above
But in general anybody below the age of 50 can can contribute up to fifty five hundred dollars per year
This is the perfect time to just put all that money towards your IRA contribution that way, it's more than half
Yeah more than halfway done
So that way the rest of the year you don't have to put it as much every single month because you've got that initial
$3,000 towards your IRA
Also, if you want a copy of the debt free prep workbook that I'm giving out
then the link is down in the description or go to debt free blueprint comm and
Sign up and I will give you a free copy of that to help you start working towards getting
Yourself out of debt getting your mindset ready for that type of thing
this is something that I wish I would have had before I started getting out of debt because I
Feel like it would have been better, so that's why I created this for you
I hope you enjoy it, so I'm crossing things off on my bucket list this year
And one of them is to make it rain at a strip club
I don't know if you want to put make it rain in the strip club, but that's why I need it for I
Figure I could probably like write it off on my taxes too cuz write it off the charity or something right?
I think that might be one of the strippers names, so
Okay, what are you gonna, put since you're not gonna put make it rain at a strip club
Very good