Tis the season

 You guys know what time it is!

 Tax season!!

khart

Now for most people this means a come up, paying off debt, buying the large popcorn at the movies,etc. but for some of us this means diversifying our portfolio, building an emergency fund, or simply just putting it away.

This isn’t to say one thing is better than the other because depending on your lifestyle, this money may be the difference between a quick getaway to Rome and having to eat Ramen until the next check so let’s talk about a few beneficial ways to put this money to use because I don’t want this to be you

im broke

As someone who used to live paycheck to paycheck I can completely identify with counting the days until the next check and relying on this refund for a little financial relief. That’s when I had to realize it was my habits and not the actual check itself. You would be surprised at how much money you could really save if you sat down and did a detailed budget. If you are living paycheck to paycheck and a contributing factor is debt, the first way you can use that refund is by alleviating the majority of your debt or at least making a significant dent in it.

Alleviate debt

Let’s say you have $5000 worth of debt and your absolute minimum payments are $150. First and foremost, never just pay the minimum. Before receiving your refund you should devise a plan on the most efficient way to get to $0 balance. I understand throwing your entire refund at a debt can be disheartening but you know what’s better? An extra $150 in your pocket monthly and $1800 annually.

damn

Invest 

It’s going to be hard for me to break down everything in a few short sentences about investing but i will say this. Do your research on return rates, compounded interest, and fees THEN Invest your money in something small first. Watch over it for 6 months or so and determine if this is something you want want to do. Make a watch list to see what’s doing well and what would be a good investment while you’re monitoring your current investment.

 Emergency fund

Alright so I’m not sure what kind of emergencies you have in your life but if they’re anything like mine, you know that $1000 might as well be $100. The point of the emergency fund is to NOT have a panic attack whenever unforeseen circumstances present themselves. If you know that you would have nowhere to turn if your car quit on you or if you needed to catch a last minute flight right now then your best bet would be to beef up that emergency fund with that refund. Thank me later.

 SAVE SAVE SAVE

Saving is a way of life. The savers of the world don’t even notice when their refund hit because they’re not looking for it. Be a saver. There’s a level of comfort and confidence that comes with knowing all your bases are covered. Now saving is different than an emergency fund and honestly you can never save enough. My aunt always told me to keep 6 months worth of bills in my savings but now I hear it should be closer to a year. I’m not ballin enough for a year yet but that is the goal. You should be able to survive should your cashflow abruptly stop. If you wouldn’t even be able to pay your car insurance for the next few months without a check….step that savings up.

Now if you’re good on all of these and you have money left over then by all means SPLURGE HONEY SPLURGE!!! Take some trips, buy some designer something, upgrade your car. The sky is the limit! My whole message behind this is to get you to a place where you’re not depending on a refund to make or break your financial readiness. So those are just a few suggestions. What are some responsible ways you can think to put your refund to good use. Let me know in the comments. Thanks for reading!!

XO,

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Welcome to Lo Key. This is a platform where I want to speak on relatable topics and share steps on how to approach them in the most realistic way possible. As I've been through tough times in my life, there was always somebody out there on the internet that could relate and made me feel 1000x's better when nobody else was around. That is what I want to do here. Whether it's the comfort of knowing somebody else has been through this or maybe you're not sure what the best route to take is, I want to reassure you that you aren't alone in this life. I do not have everything all figured out but I will share what works and has worked for me and maybe it can work for you too. I'm Lo and these are my keys.

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