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It’s tax season! You know what that means. The question you’re thinking is… “What is a smart decision with my tax refund” and like most things my answer is… It depends. However, there are formulas that I use and today we’re going to get into what this looks like. So let’s do this!
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Podcast Keypoints
0:00 – Episode Overview
2:39 – Formulas For When Receiving A Chunk of Money
3:35 – First Priority – Giving
6:39 – Bills
7:21 – Contingency Fund – What Do You Need
8:47 – Annual Expenses
10:02 – Paying Off Debt & Settling On Medical Bills
11:16 – Investing In Your Business
11:46 – Prioritizing You – Do Something For You And Your Family
12:29 – Breaking Up The Categories
13:29 – How To Treat Yourself Responsibly
14:35 – Recap
15:24 – Challenge
Frustrated that you aren’t making the progress that you should within your finances? Create an unshakable money mindset with the Money Mindset Mastery Checklist
Smart Money Moves For Your Tax Refund
Episode: Smart Money Moves For Your Tax Refund
This episode of the Your Money Your Life podcast is brought to you by the Money Mindset Mastery Checklist. If you feel like you’re doing everything right but still not reaching your financial goals, it might be a mindset obstacle. The Money Mindset Mastery Checklist provides 10 simple steps to create an unshakable money mindset. It’s free, and you can get it at www.aimeecerka.com/mindset or text “mindset” to 817-969-4653.
Main Content:
It’s tax season, and a common question is, “What should I do with my tax refund?” While the answer can depend on individual circumstances, there are several smart strategies you can consider.
1. Pay Past Due Bills:
If you have any overdue bills, it’s wise to use your tax refund to catch up and avoid late fees and further financial strain.
2. Fund Your Contingency Fund:
Also known as an emergency fund, having at least one month’s worth of emergency expenses in cash is crucial. This fund should be separate from your regular savings.
3. Save for Annual Expenses:
These are expenses that occur regularly but not monthly, such as car maintenance, holidays, or homeowner’s repairs. Having a separate savings account for these can prevent budget disruptions.
4. Pay Off Debt:
Consider using your tax refund to pay down debt. This can reduce monthly expenses and financial stress.
5. Invest in Your Business:
If you have a business, investing in it can be a smart use of your tax refund. This can lead to future financial gains.
6. Do Something Fun for You and Your Family:
While it’s important to be financially responsible, it’s also important to enjoy life. Allocate a small portion of your refund for something enjoyable.
Example Allocation:
- 10% to Giving: Consistently give 10% of all income, including your tax refund.
- 30% to Savings: This could be for annual expenses or contingency funds.
- 30% to Debt Repayment: Reduce financial burdens by paying off debt.
- 25% to Business Investment: Support growth and potential income increase.
- 5% to Fun: Treat yourself and your family to something enjoyable.
Closing:
Remember, your allocation should be tailored to your unique financial situation and goals. If you need personalized help, consider joining the Money Masters Inner Circle, where you can receive tailored advice and support.
Challenge: Send Aimee a message on Instagram (@aimeecerka) to share your thoughts on these strategies and how you plan to use your tax refund.
Outro:
Thank you for listening to the Your Money Your Life podcast. For personalized financial planning, visit https://workwithaimee.com. Make sure to subscribe to the podcast, leave a rating, and review to help others find the show. See you next week!
