Four Ways to Make the Most of Your Tax Return
I’m not sure exactly when we started this, but anytime our family gets an ‘unexpected’ chunk of money that isn’t part of our regular budget (like bonuses, tax returns or those surprise Covid stipends), half of that money goes to paying off debt, unless we are debt free. It helps us get ahead on payments, lower the amount of interest we end up paying over time, and should we ever need to create more wiggle-room in our budget, we could have that flexibility.
Using your return to get ahead on loans or catching up those pesky credit cards will start your year off with more financial freedom!
Pay Down Debt
Here at The Latter-day Disciples podcast, we are determined to do just that. Each week starting in January 2022, we will be bringing you empowering and fortifying truth to help you boldly live the gospel, recognize the signs of the times, and prepare for the return of our Savior, Jesus Christ. In every episode, you can expect to gain insight on the unique opportunities and responsibilities of living in the last days, with all of the challenges and especially the blessings. You will learn to see the world through a spiritual lens as we observe current events and what undoubtedly will come to pass. And above all else, you will feel more tangibly your own divine identity and the call you have been given to participate in the preparation of the world.
Boost Your Emergency Preparedness
Got those loans all caught up, or living in debt-free bliss? Let’s look at our emergency preparedness! Is there a way we could prepare our home or families to be better prepared for the days ahead?
We have a running list of our preparedness needs, and when a little extra cash comes along, we go through that list and decide what things need the most attention. Does the medicine cabinet need to be restocked? Could we use more food storage? Ect. Then we can create a mini-budget for that extra money, and begin shopping around for the best deal to fit our needs.
Prioritize Your Needs & Wants
Along with a list of preparedness goals, make a list of wants and needs that may not be preparedness related. Things like home repairs, new wardrobes, maybe a new tool (in our case a snowblower for these Idaho winters), vacations, anything you’ve been putting off financially because it doesn’t fit in the normal budget at the moment. Then we go through and prioritize things.
This strategy allows us to communicate about the needs and wants of our family, and be able to reach more of those goals. Sometimes when we have a lot of needs, we give each member a little ‘play money’ or a budget for each adult, and then a fund for something for the kids, so that some of those little wants can be taken care of, while we also make a dent in more of the needs.
Create Sinking Funds
Another method to maximize your return is to use it towards your sinking funds. In the past, we have taken chunks of our returns or bonuses to fund things like Christmas, car or home repairs. We’ve found that especially having a Christmas fund early allows us to really watch sales throughout the year, and get things the people on our list would really enjoy.
Action Steps
- Focus on paying on debt
- Create a list of needs and wants to prioritize
- Budget the money to fit your priorities
Love What You're Reading?
Tune into this episode wherever you listen to podcasts. Want to get started?
Come Follow Me BFF
Are you wanting to deepen your Come Follow Me study this year? Join McKay on the Daily Discipleship Podcast Monday through Friday for daily inspiration in a bite-size format.
Up Your Preparedness Game
Our Honey + Lilies Blog is dedicated to helping you prepare for the days ahead. Want to get started? Click here.