[{"@context":"http:\/\/schema.org","@type":"BlogPosting","inLanguage":{"@type":"Language","name":"English","@id":"https:\/\/jobbloghq.com\/#Language"},"mentions":[{"@type":"Thing","url":"https:\/\/www.wikidata.org\/wiki\/Q47728","name":"wiki-hobby","sameAs":"https:\/\/en.wikipedia.org\/wiki\/Hobby","@id":"https:\/\/www.wikidata.org\/wiki\/Q47728"},{"@type":"Thing","url":"https:\/\/www.wikidata.org\/wiki\/Q116213","name":"wiki-vacation","sameAs":"https:\/\/en.wikipedia.org\/wiki\/Vacation","@id":"https:\/\/www.wikidata.org\/wiki\/Q116213"},{"@type":"Thing","url":"https:\/\/www.wikidata.org\/wiki\/Q708438","name":"wiki-down-payment","sameAs":["kg:\/m\/074mfm","https:\/\/en.wikipedia.org\/wiki\/Down_payment"],"@id":"https:\/\/www.wikidata.org\/wiki\/Q708438"},{"@type":"Thing","url":"https:\/\/www.wikidata.org\/wiki\/Q1550600","name":"wiki-mortgage","sameAs":"https:\/\/en.wikipedia.org\/wiki\/Mortgage","@id":"https:\/\/www.wikidata.org\/wiki\/Q1550600"},{"@type":"Thing","url":"https:\/\/www.wikidata.org\/wiki\/Q3196867","name":"wiki-debt","sameAs":["kg:\/m\/013y7y","https:\/\/en.wikipedia.org\/wiki\/Debt"],"@id":"https:\/\/www.wikidata.org\/wiki\/Q3196867"},{"@type":"Thing","url":"https:\/\/www.wikidata.org\/wiki\/Q3698619","name":"wiki-programmable-thermostat","@id":"https:\/\/www.wikidata.org\/wiki\/Q3698619"},{"@type":"Thing","url":"https:\/\/www.wikidata.org\/wiki\/Q4354533","name":"wiki-random-act-of-kindness","sameAs":["kg:\/m\/01__zd","https:\/\/en.wikipedia.org\/wiki\/Random_act_of_kindness"],"@id":"https:\/\/www.wikidata.org\/wiki\/Q4354533"},{"@type":"Thing","url":"https:\/\/www.wikidata.org\/wiki\/Q85759142","name":"wiki-emergency-fund","sameAs":["kg:\/g\/11j7jx03z6","https:\/\/en.wikipedia.org\/wiki\/Emergency_fund"],"@id":"https:\/\/www.wikidata.org\/wiki\/Q85759142"}],"about":{"@type":"Thing","url":"https:\/\/www.wikidata.org\/wiki\/Q1117196","name":"wiki-tax-refund","sameAs":["kg:\/m\/056g85","https:\/\/en.wikipedia.org\/wiki\/Tax_refund"],"@id":"https:\/\/www.wikidata.org\/wiki\/Q1117196"},"mainEntityOfPage":{"@id":"https:\/\/jobbloghq.com\/career-blog\/spend-tax-return\/"},"image":{"@type":"ImageObject","url":"https:\/\/jobbloghq.com\/wp-content\/uploads\/2022\/03\/excited-man.jpg","name":"Smart Ways to Spend Your Income Tax Refund","height":"757","width":"1136","@id":"https:\/\/jobbloghq.com\/wp-content\/uploads\/2022\/03\/excited-man.jpg"},"url":"https:\/\/jobbloghq.com\/career-blog\/spend-tax-return\/","dateModified":"2022-03-10","name":"Smart Ways to Spend Your Income Tax Refund","headline":"Smart Ways to Spend Your Income Tax Refund","author":{"@type":"Person","url":"https:\/\/jobbloghq.com\/beverly-mapes\/","name":"Beverly Mapes","description":"Beverley Mapes bio, business owner of Top of the List, hires employees as main human resources manager for her company.","sameAs":["https:\/\/www.linkedin.com\/in\/beverlymapes\/","https:\/\/topofthelist.net\/about-us\/our-team\/beverly\/"],"@id":"https:\/\/jobbloghq.com\/beverly-mapes\/#Person"},"articleBody":"Are you expecting an income tax refund this year? If so, you are probably looking forward to the day you get that check or see the deposit in your bank account. You may have given a lot of thought as to how you\u2019ll spend your money, or you might just \u201cdo what you always do,\u201d and spend it on whatever. \n\nWith all that money in hand, some of us make fast decisions without thinking. It\u2019s pretty easy to do. Yet thinking about how you\u2019ll spend it before you have it can help you use it for smart purposes that will make you much happier in the long run. Here are some smart ways to spend your income tax refund this year.\n\nSave It\nSaving your income tax refund might seem like the last thing you want to do with your money, but when you think about what you are going to save it for, it can improve your outlook on life now. It can also make you very glad that you saved it for when it is actually used. Here are some possibilities where saving it will make you happier long-term.\n\nAn Emergency Fund \u2013 If you don\u2019t have an emergency fund at all or if it is very low on funds, it\u2019s a good time to start or replenish it. Even if you only put a certain amount in there, or a little at a time, you\u2019ll be glad you did when your car breaks down, you have an accident, or experience anything unexpected that requires extra money right away.\n\nA Vacation \u2013 When was the last time you took a really good vacation? Many fun vacations can happen without a lot of money. But having extra cash can mean a lot for you and your family, especially if most vacations in the past have been very low budget. You\u2019ll have fun and experience something new. Plus the memories that a special vacation creates will last forever\u2013for both you and your friends or family members. \n\nDown Payment on a House \u2013 If you\u2019ve been dreaming of homeownership and have always felt it would never happen for you, know that it never will unless you begin saving up a down payment. Owning can be less expensive than renting, and you\u2019ll have so much more control over your environment as a homeowner. But that down payment can be hefty to keep your monthly mortgage payments to a do-able level. Adding some of your tax refund to the house down payment fund can bring you that much closer to owning a home.\n\nIncrease its value\nIf someone asked you to give them your tax refund now and promised they would double it in a year and give it back to you, would you do it? Depending on your situation, you could make that happen yourself. Here are a few ways to increase the value of your refund.\n\nPay Down Debt: Credit Cards, Car Loan, or Mortgage\n\nTake a little time and write down information about what you currently owe:\n\nWho you owe\nHow much you owe today (or on your last statement)\nThe interest rate you\u2019re paying\nHow much you\u2019re paying per month\nThen use a handy calculator and figure out how long it will take you to pay it off \u2013 and how much you\u2019ll have paid after it is paid off  \u2013 assuming you don\u2019t add anything to the loan. \n\nHere\u2019s an example: You owe $2,500 now on a credit card, are paying 16% interest, and your payments are $40 a month. Now click on the link for the handy calculator above and add these numbers to the Fixed Payment tab. It will take 11 years and 3.28 months to pay off your loan, and you\u2019ll have paid $2,911 in interest alone \u2013 more than the amount you owe now!\n\nIf you put $500 of your income tax refund on this loan, you\u2019ll now owe $2,000. Run the numbers again and there is a huge difference.\n\nPaying $500 on the $2,500 loan while maintaining the $40 per month payments brings your total interest down to $1,317.76 \u2013 a savings of $1,593.87! Your payoff is now 6 years, 10 months instead of 11. How smart you are for more than tripling your refund. You paid $500 and saved $1,594. You actually earned $1,093.27 off your original $500! How much better to have this in your pocket than in the banks who lent you the money.\n\nProgrammable Thermostat\n\nIf your refund isn\u2019t that much, or if you can put some of it towards a programmable thermostat for your home, here\u2019s a pretty simple way to increase the value of your tax refund. According to ENERGY STAR, programmable thermostats save the average household $180 per year.\n\nProgrammable thermostats can be purchased at $129 and up, so you could save $50 your first year, and $180+ per year each year after that. It will actually be more savings each year that energy costs rise and thus more savings too. Be sure the thermostat is compatible with your furnace, and check your utility company for possible discounts.\n\nInsulation or weatherproofing \u2013 If you\u2019re fortunate enough to own your own home, adding insulation might be a great way to reduce your energy costs and get your tax refund to pay you back. Even if you\u2019re just renting, it might pay to add low-cost weather stripping around doors and removable window film over windows. It\u2019s also worth asking your landlord if you can be reimbursed for the products if you do it yourself.\n\nEnroll in a Dave Ramsey or similar course \u2013 Dave Ramsey is a popular radio personality who shares \u201cpractical answers for life\u2019s tough money questions.\u201d While much of his advice is free, he also offers books, videos, and courses for those truly interested in getting out of debt. If you have a lot of debt, this is one way that your tax refund will pay you back many, many times \u2013 assuming you follow his advice. \n\nThere are many other advisors and he is not the only good one. Be careful of debt consolidators though. They charge a hefty fee and it can make it easier for you to rack up more debt once you\u2019ve consolidated. If you can work on getting debt-free yourself along with some guidance, you\u2019ll pay a lot less to get there and develop the right habits to stay out of debt going forward.\n\nSpend it\nSpending your refund can still make you happy, as long as you\u2019ve thought it through and feel it\u2019s the best use of your funds. Keep in mind that in many instances, the joy of spending it on one-time things usually doesn\u2019t last long and in most cases will not pay you back. But it can also be worthwhile. Here are some ideas:\n\nSmall luxury for yourself \u2013 If you received a bigger refund and decided to use it for one or more of the smart uses above, spending some of it on a small luxury for yourself can make you feel a lot better. You\u2019ve been smart and now you\u2019re rewarding yourself.\n\nDonate, pay it forward, or do a random act of kindness \u2013 Again, this should be done in conjunction with another use of your funds. But donating some of your refund, paying it forward as a surprise to someone, or purchasing something as a random act of kindness for someone you don\u2019t know can brighten your day and also benefit the recipient of your generosity. Regardless of where we are in life, there are always people who are worse off.\n\nSomething special for a family member \u2013 Sometimes family members run into bad times. Or children wish, hope, and pray for something special that they never think their parents could afford. Sometimes it isn\u2019t even that big of a thing but there is never any extra money. Using part of your refund for a surprise gift or to help someone that truly needs it can create gratefulness that will last forever.\n\nFund your hobby \u2013 You\u2019ve worked hard, but how often do you play? Maybe you love frisbee golf but only have a few frisbees. Perhaps you enjoy woodworking but don\u2019t have the tools or material to build what you\u2019d like. Investing some of your tax refund in your hobby can give you something productive or fun to do during non-working hours. In turn, it brightens your mood and makes for a happier life.\n\nWhat NOT to do with your tax refund\nQuit your job and live on it for a while \u2013 While it might be tempting, in the long run this action is not going to make you happy in life. For one thing, jobs might be plentiful when you quit but not as available when you\u2019re ready to go back to work. You lose all seniority, benefits, and the opportunity to increase your wages. And all those opportunities to spend your money above\u2013the ones that will bring longer-term happiness\u2013will be lost. \n\nPut it in the bank and spend it on everyday expenses \u2013 For some people, putting the tax refund in the checking account and then spending it on everyday expenses is the easiest thing to do. Sure, there are more things you\u2019ll do with it. Buy more pizza or fried chicken, grab more snacks at the gas station, or rent more movies. Little by little it will get spent and there will be nothing to show for it. \n\nGo on a shopping spree and blow it all the day you get it \u2013 So, so tempting. Feels like Christmas! But it\u2019s a one-day event and then it is all done. While you might enjoy some of what you purchased for a while, you won\u2019t be closer to homeownership, have an emergency fund, or make your refund multiply. Long-term, you won\u2019t be nearly as happy as if you spent it more wisely. If you feel the need for a shopping spree day, consider using only half of your refund on that day and use the rest for things that will offer more long-term gratification.\n\nHopefully, you now understand that how you spend your income tax refund can have an impact on your longer-term happiness in life. In the end, it\u2019s your choice: short-term satisfaction or longer-term happiness. We hope you choose to spend your refund on the things that make you the happiest for the longest period of time!","publisher":{"@type":"Organization","logo":{"@type":"ImageObject","url":"https:\/\/jobbloghq.com\/wp-content\/uploads\/2023\/12\/the-job-blog-lt-horiz.png","name":"The Job Blog logo","height":"116","width":"818","@id":"https:\/\/jobbloghq.com\/wp-content\/uploads\/2023\/12\/the-job-blog-lt-horiz.png"},"url":"https:\/\/jobbloghq.com\/","employee":[{"@id":"https:\/\/jobbloghq.com\/beverly-mapes\/#Person"},"https:\/\/jobbloghq.com\/amber-schneider\/"],"alternateName":"Job Blog HQ","additionalType":["https:\/\/en.wikipedia.org\/wiki\/Internet_forum","https:\/\/en.wikipedia.org\/wiki\/Blog"],"name":"The Job Blog","description":"A resource website containing helpful blog articles and forums for job seekers, employees, recruiters, employers, and anyone with a career.","telephone":"+1 (616) 284-5446","contactPoint":"https:\/\/jobbloghq.com\/contact\/#ContactPoint","foundingDate":"2024","areaServed":"https:\/\/www.wikidata.org\/wiki\/Q30","@id":"https:\/\/jobbloghq.com\/#Organization"},"description":"Some ways to save your tax return money or spend it wisely.","datePublished":"2022-03-10","copyrightYear":"2022.0","isFamilyFriendly":true,"subjectOf":{"@type":"Blog","url":"https:\/\/jobbloghq.com\/hr-blog\/","name":"The Job Blog - Career Blog","description":"blog for human resource managers and employers","inLanguage":{"@id":"https:\/\/jobbloghq.com\/#Language"},"about":"https:\/\/www.wikidata.org\/wiki\/Q656365","@id":"https:\/\/jobbloghq.com\/career-blog\/"},"wordCount":"1740","isAccessibleForFree":true,"timeRequired":"P0Y0M0DT0H7M19S","citation":["https:\/\/www.calculator.net\/payment-calculator.html","https:\/\/www.ramseysolutions.com\/"],"@id":"https:\/\/jobbloghq.com\/career-blog\/spend-tax-return\/"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Career Blog","item":"https:\/\/jobbloghq.com\/career-blog\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"Smart Ways to Spend Your Income Tax Refund","item":"https:\/\/jobbloghq.com\/career-blog\/spend-tax-return\/#breadcrumbitem"}]}]