We’re going to bypass that whole conversation about tax refunds really being money we all gave the government and now they’re giving it back to us without interest. Got it. Received. Heard.
But the truth is that people still enjoy receiving a tax refund. Why? A large sume of money that’s outside of our regular paycheck. It’s like winning a weak version of the lotto. But with this money comes great responsibility. Like…saving, investing and paying off debt. All of which should be done if we have a sizeable tax refund coming our way. The more we can put away for our retirement, a lofty goal or towards debt, the happier and prepared we’ll be. And side hustlers aren’t excluding from this practice. Because we’re constantly creating income streams, and much of the time it’s inconsistent, we have to be more mindful of how much we put away for a rainy day and any debt we’re trying to conquer.
I’m still playing around with the numbers for how I want to divvy of the money, but I’m pretty sure I’m going to be saving $1,700-$2,000 of my refund which is 2/3 of what I’m getting back. The rest will go to paying some of my student losn debt and I’m considering investing as well. I’ll keep you updated with this plan. Do you have yours?