Ahhh it’s tax season.

Sidewalks and curbs are decorated with empty flatscreen TV boxes. People are venturing out to treat themselves to dinners and other luxuries they couldn’t afford over the past year. Stores are discounting merchandise and people are ready to spend spend spend. shopping-spree

It’s easy to get caught up in the income tax spending season. After all, if you have poor spending habits, these will only be exasperated by the lump sum of money you received after filing your taxes. But you can also used this money to get ahead and get your goals going.


Here are three ways I urge you to consider using your income tax return:

Pay off a Debt- Sometimes even the best of us find ourselves faced with unexpected credit card debt .Many of us have a debt that we want to pay off and only use our income tax to pay a portion of that. Take advantage of receiving this chunk of money and pay it off for good.
If it s a credit card, once you have paid it off don’t use it or make sure you only charge things you can afford to pay off within that month. If it’s a collection debt or something similar make sure you have everything in writing including the payment agreement and a letter confirming that you paid off the debt.


Kick start your investment portfolio- Several people stray away from investing because they don’t believe they have enough money to make the initial investment.  Consider allocating a percentage of your refund for investing. While you need a decent chunk of money (usually $500 min) to start your investment fund, you can contribute as little at $50 per month. I chose to do this with a portion of my return and was able to find a financial adviser that worked off contingency.


Do something that will change your life or your family’s I’m also big on enhancing the quality of our lives. While I consider paying off debt to be a big life changer, if you have money left over, invest in you. This year for instance I am using my a portion of my income tax return to take my first trip to Africa. Last year I used  a portion of mine to visit Europe.

Consider using your income tax to invest in your happiness whether it’s that life changing trip, saving for a big move, or attending a conference or classes that will help you improve yourself and working habits. Note: pay attention to how you define happiness. In my opinion it this spending option should help you accomplish something you’ve always wanted to experience.

If you have not already filed your taxes you should do so pronto. If you are low-income, there are a variety of organizations available to help you for free. If you are not low-income, consider doing them yourself or ask your peers for recommendations.

So did you get an income tax return this year?

How did you or how do you plan to spend yours?




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Created by nationally recognized millennial money expert Tonya Rapley, My Fab Finance is a leading financial education and lifestyle blog for millennials who want to become financially free and do more of what they love.