Tax Refund Burning a Hole in Your Pocket?

Money In PocketTax refund starting to burn a hole in your pocket?

It’s tempting, isn’t it.  You know, every year millions and millions of people file their taxes, cash their refund checks (or withdraw the cash from the bank when it arrives in the account), and spend it within a matter of days.

It seems as if there’s always a project that they want to do at home, or something that they just can’t live without, or even somewhere they can’t just NOT go.  Whether you’re tempted by new laminate flooring, a new car, or even that trip to the beach for spring break, don’t spend ALL of your tax refund so quickly this year.  Instead, why not set aside a portion of it for that emergency fund you’ve been meaning to start?

That’s right, SAVE part of your tax refund this year.

It took you ALL year to pay the taxes that resulted in the refund, so why not keep it a little bit longer than it’ll take you to get to the nearest home improvement, electronics, or automobile store?  Maybe you can rent a cheaper condo or hotel room on spring break?  Surely, there is some way that you can hang on to a portion of that tax refund?

Let’s face it, for some of us, that’s the single largest lump sum amount that we see all year, and it’s likely impossible that we’d be able to save that amount as easily as we get it once we file those taxes.  So, for once, why not think ahead.  Sit down with your checkbook, savings account, and budget, and really think before you spend.  Even if it’s only 10% or 25% of your tax refund, SAVE IT.

Put it in your savings account.  Draw it out of the bank in cash.  Do whatever you need to do so that you don’t spend it frivolously this one time.  I promise you, once you manage to save just a portion of it, just one time, every year you will strive to save a little more.  Don’t believe me?  Why not try it this year.