The United States tax season started almost two months ago and millions of Americans are waiting for their Tax Refund. This is because citizens are waiting for the Tax Refund to appear so that they can use it for their day-to-day purchases, mortgage payments or other regular expenses. However, this is not advisable, according to many expert economists.
Metropolitan State University of Denver Affiliate Professor of Accounting Robert Persichitte, through CBS Colorado, assures us that the Tax Refund should not be something we spend soon, but on the contrary. This expert talks about the importance of not having money under control at all times. This could be the key that separates the economic disaster from the financial bonanza.
Thus, having a lower Tax Refund this year should not be a problem. This is true as long as we have everything under control. It is important to take into account that many economic helps of the past do not arrive anymore this year, due to the fact that the United States Government does not send new stimulus checks or similar economic helps. Do you follow this advice?
If you have a small Tax Refund, keep an eye on the budget
Robert Persichitte’s general advice is that we should always be mindful of the budget we have. We should mark which money we can use for food, rent or other expenses. This means that the size of the Tax Refund does not matter, quite the contrary.
In another order of things, saving also becomes really important. If we put the two things together we can come to the conclusion that the best way to make sure that our Tax Refund does not disappear too soon is not to use it. If we receive the Tax Refund and leave it in a savings account, we will be able to use it in case of emergency.
Saving is the key to a good economy at home
Staying on budget can be really difficult. For that reason, we need to keep track of the money we spend in each area every month. If we receive a small Tax Refund and decide to add it to the monthly budget, at the end of the month we should have extra money that we have not used. In this case, the smart thing to do would be to save the surplus.
Still, another way to use our Tax Refund wisely is not to use it directly, as we have already mentioned. In addition to this, it is also a good idea to create a section in the budget dedicated to savings. This way the savings will be part of the monthly budget and we will have more money at the end of the year.
Any savings is a savings. If we save $1 a day, at the end of each year we will have $365 saved, which we can use for anything else we need. And in the end, that’s what makes the difference between going under financially and having good financial health at home.