Welcome to the latest series on www.JoeSangl.com – "Best Utilize Your Tax Refund"!
About 70% of Americans expect to receive a refund this year. Are you one of them? If so, it can be a tremendous tool to start your journey toward Debt Freedom and Financial Freedom!
Step 1 Before You Spend It, Plan It
I used to have my tax refund spent sixteen different ways by the time it actually arrived. It was assigned to pay for Christmas, summer vacation, clothes, credit card bills, student loan payments, car payments, a new appliance, a new electronic device, etc.
In addition to having spent the refund sixteen different ways, I had went ahead and made all of the purchases via credit card or other form of loan.
When the refund actually arrived, it was woefully inadequate to cover my crazy spending.
Talk about feeling miserable!!! Is anyone reading this and feeling my pain, or am I the only one who has done this?
When I decided once and for all to take control of my finances, I realized the root cause of my problem.
The root cause? The reason for my crazy spending?
I did not have a plan!
Before you spend your tax refund, plan out the spending first! I highly recommend that you use the Mini-Budget Form (Excel) to plan your spending. Enter the amount of the tax refund at the top, and spend it to exactly zero (Remember: INCOME – OUTGO = EXACTLY ZERO.
Start planning now – BUT don't start spending just yet. We are in the PLANNING stages.
Where should the money go? Well, that will be covered NEXT in the series!