Many of us have been waiting to get our payback of overpaid monies from the government to spend on stuff we want. YOLO is peaking at an all-time high right now and will increase for the next couple of months. I get it. Yet, there are some things we can do differently this tax season to set you up financially and prep you for next year.
While the refund you get from the government is a level up, many of us aren’t taking that increase to level up in other areas. We all have different financial situations, so our tax refunds will also be different — but one thing we can all do the same is make this season better than the past.
Keep in mind that you do not have to complete everything on this list. Use this guide as a way to jump-start your plan to:
1. Pay down debt
This is a given. Before you swipe, click submit or bird signal––take an account of current and past debt you have. Write it down, shawty. If ish is late, call them up and ask if you can pay ____. Also, ask if they can take the late charges or interest rates off. Ask not, want not. You should make a payoff plan so that when the money comes, you won’t *forget* and end up buying those Js instead.
For old debt that is in collections, send a validation letter to make sure the debt is valid. Then ask the debtor for any discount if you pay in full or set up arrangements to pay it down. Don’t forget when you pay it off to have them update your credit reports at ALL bureaus and send you a confirmation.
2. Flip it, invest it, compound it
Open up yo IRA, investment account (be sure to opt for low fees) and take out a small percentage of your money to work in the markets. Plot, plan, and buy a couple of shares. Keep in mind that investing is a long-term process, so don’t get mad when you aren’t a millionaire tomorrow.
3. Please save the baby
If you got kiddos, set them up nicely. Open up a savings account, 529, and custodial accounts to help build their future. Heck, get them life insurance. If you can’t do all of those options, scale them out for the future. One step at a time.
4. Build shawty, build
You should flip whatever you could claim and set up multiple high yield savings accounts. I will endorse these accounts until I’m Blue in the face. Why? They are paying you money for them to hold yo money there.
Here are some good ones.
The core creating these multiple savings account is to give your goals “workers.” Make your money work for you. The key is to keep saving alllll year, hmmk? This is a jump start for your savings plan!
5. Watch your filing
Next year will be different for many of us due to the new tax laws. Ask your preparer about your current withholdings and other claims. Also, ask about your bracket. You might be getting extra money throughout 2018, but it will impact your tax prep next year. Open a savings account to prepare if you gotta repay “the man.”
6. Buy yourself something
Yes, you read that correctly. Honestly, truly. Treat yourself in moderation. Give yourself a budget *tax time or any time* and buy yourself something. You work hard, allow your money to work for you. Just don’t neglect your goals and go into debt.
7. Fund experiences
Save for courses to help you get paid more in your industry. Buy you a passport ($110). Book a trip (Did you could put plane tickets on layaway?). Find ways to fuel your life along with the material things.
Did we miss any tax time tips? Drop ’em in the comments.
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