Are you looking forward to your tax refund? What are you planning to do with it? It seems the only consolation for having to go through the hassle of filing taxes is that you receive a chunk of money back at the end. Now the first thing to keep in mind is that this is your money that the government was holding onto that now they are giving back to you. It’s not a gift or a prize of some sort.

Now that you suddenly have money in hand that’s outside of your normal budget, a lot of businesses are going to try to convince you to spend your refund with them. I strongly encourage you, though, to divert it to savings instead. The IRS estimates the average tax return for 2019 will be $3,000. Think about the long term – if you take $3,000 now and put it into savings, and then do it again next year, and so on, over the next 10 years that’s an extra $30,000 of previously unplanned savings (plus if you put it in the right place, you can potentially end up much further ahead in the long run). On the other hand, if you spend it now, what will you really have to show for it in the long run? Upgrading some toys now doesn’t leave you with a growing retirement nestegg.

Human nature is hard to overcome. If your habit is that you use that money to splurge, maybe you can make an adjustment this year – enjoy some of it now, but save most of it for the future…say spend $500 and save $2,500. We’re talking about your future, here. You owe it to your future self and your family to plan ahead. If you struggle to save monthly, this could be a way to finally save like you say you want to and know you need to.

Wanting to implement this saving idea is awesome. Taking some kind of action (even imperfect action) is good, but knowing where you can maximize your money takes guidance from an expert. In our business, we decided to tear down all the barriers that keep the middle class from receiving the strategies that wealthy people use. We do not charge you any fees at any point in the process and we do research among some of the top companies in the industry to find the right fit for you. Reach out and we’ll set a time to talk through your situation.

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