Tax season is officially over! And many of us have already received our returns and just want to spend that check on that bag we have had our eyes on all season ( I know you do because I almost did as well )Here is some tips to make that Return go towards more worthy things (in the long run) and bring down your debt to buy more (Never Ending Cycle for thy Fashionistas)
DONT PUT ALL YOUR EGGS IN ONE BASKET! Large numbers would make you want to spend more. The larger the number, the quicker it is spent. Don’t put your eggs all in one basket and spend all your money on that Christian Louboutin you have dreamed of, or that Chanel bag you have had your eye on. Use bits and pieces for things you NEED over you WANTS.
PAY YOUR DEBTS! Try your best to lower your credit card debts, if you have anything too high. Make sure for at least the next few months your paying more than just the minimum. You are trying to bring them down, not keep the debt the same after interest.
SAVE! Depending how much debt you have, put from 1/4 to 1/2 of your refund check into savings (for those with little control on shopping, you have a little extra in your pocket 😉 If you are harder on yourself, put 3/4 into savings. Every time you receive a paycheck, add somewhere from 1/4 – 1/2 of your paycheck into savings. Watch that money grow!
BUDGET! Mental note on how much you are going to spend BEFORE receiving your tax refund check. Make that money go into something useful like a trip, paying off loans or saving towards when your next rent is due. Once you train your mind before receiving that check, you will have that mental note. I usually have my highest check deposited into my saving and the lowest into my checking. I evaluate what I will be spending until my next paycheck and push the rest into my savings for any emergencies.
PAYMENT PLANS! Are you yearning for those gorgeous shoes or that new Chloe bag for the season? Set yourself up with a payment plan to YOURSELF or an account specifically for your wants and needs. Add a bit (1/4) of your paycheck to that account every time you get paid or have an income come in. Within no time you will have enough to buy the shoes and the bag at the same time!
Hope all these tips help. Stay fabulous and bank accounts stacked.