5 Ways to Spend Your Income Tax Refund

Every spring as the flowers and wildlife begin to emerge from their winter slumber, in the U.S. and another entity awakens - tax season! For many, this is the time where taxpayers anxiously await with enthusiasm for the money the government will be returning to them in the form of a tax refund. As of December 2019, 111.8 million refunds were issued to taxpayers and totaled $320.1 billion. The average refund was $2,869. 

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Of course, not everyone gets a refund, but if you are expecting one, you may be wondering what you should spend it on first. Many people opt to treat themselves to something they wouldn't otherwise buy. Occasionally this is a nice thing to do, but from a practical sense, it is probably a good idea to prioritize and look at the alternative ways to spend tax refunds.

7 Ways to Spend Your Income Tax Refund

1. Pay Ahead on Debts

Tax returns are an excellent opportunity to pay down outstanding monies owed. If you have credit card, medical or other miscellaneous debts, try to pay those bills off and get them out of the way. Tax refunds are a great occasion to financially get ahead.

Why not pay extra on a mortgage, car or student loan? Over the course of time, paying towards the principal of your loan will save bundles of money. If you have credit card debt, use your refund to pay it down. The average U.S. household owes $6,849 in credit card debt. This equates to an average of $1,162 in annual interest. 

There is little sense paying additional fees or interest on money already owed when you have an opportunity to get it all paid off. It is less monthly maintenance to worry about and more money in your pocket to use for other things.

2. Replace Appliances or do Home Improvements

Been waiting a long time to replace that hot water heater? Stove or washing machines been on the fritz? Refrigerator ready to retire? Why not use some of your tax return to replace much needed big ticket items. You could always buy them on credit, but then you're paying out interest and having another consistent bill every month. Again, this is all money you could theoretically have back in your pocket monthly to use for other things.

3. Invest

One good way to spend tax return money is to invest it to make more. However, before doing this it is important to either do the research, understand the risks and get a good pulse on investing. Another option is to find a good brokerage company to assist you with investing.

4. Vacation

Most people look forward to an annual break, especially if they've got some vacation time coming up, but no money to spend. A tax return is a perfect opportunity to buy yourself and/or your family a nice vacation.

Be as frugal or elaborate as your refund allows. What's most important is the vacation doesn't get put on those aforementioned credit cards because it negates the intentions of trying to get ahead. You don’t want to put yourself in debt.

5. Remodel

Depending on how much your refund is, a fun project is to remodel a room in the home. Consider refacing your kitchen cabinets or replace that dingy old carpet you've been itching to get rid of. These expenses are not something typically factored into a monthly budget, and a tax refund is a great way to plan out for these kinds of expenses. In the process, you can increase the value of your home which isn’t a bad ROI for an investment of your tax return.

Whatever you decide to do, it's a good idea to try and file your return on early and get the money sooner. The faster you file, the quicker you'll be able to pay, invest, or spend your return! If you're unsure of how you want to spend it, you can always save it for a rainy day . . .

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5 easy ways to save on your wedding

Planning a wedding is one of the most special times of in the life of a bride and groom. While it is a happy and much anticipated day, it is also one of the most expensive events in one's life. After adding up all the large and small expenses that come with planning the big day, weddings can easily cost upwards of tens of thousands of dollars if not careful. The good news is there are many easy ways to save on your wedding.

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If you are planning a wedding on a budget, it is not always an easy task, but the good news is there are many ways you can scale back on costs when planning - and still have the wedding of your dreams.

Excellence in planning does not necessarily mean you have to be extravagant in spending, as a beautiful wedding can still be had without going bankrupt.

Here are 5 easy ways you to save on your wedding and still experience a beautiful day:

1. Create a budget and stick to It

Knowing what you can afford up front is a valuable first step to take when planning a wedding. The general idea of a wedding budget is to ensure the couple doesn't overspend so as to avoid starting a marriage off with heavy debt. Beginning a life together with this kind of financial burden can quickly put a marriage under duress as a couple becomes adjusted to married life.

Having an established budget makes it much easier to decide on how much is affordable to spend when arranging all the different details of the wedding. For instance, if you have an overall designated amount of money spend, but the reception location is going to cost your entire budget on its own, you know you'll have to look for other options or else you won't be able to afford anything else.

Some people plan their wedding on credit, and this may be a viable option if you and your new spouse can afford the credit card payments as you start your new life. The most important aspect of creating a wedding budget is to communicate with your intended and be sure you both agree.

2. Get married off-season

People who get married in the off-season find that many vendors and services offer much cheaper prices. Some of the more popular months are May, June, and September, so if you call around and ask different places what their seasonal prices are you might be very surprised what you find.

It is common to save thousands of dollars just by choosing a less popular wedding date. In addition, banquet halls, restaurants, florists, limousines, wedding dress shops and tuxedo rentals will often offer discounted prices or special deals in order to entice soon to be newlyweds to buy their products and services; this benefits them because it helps keep the stores in business during the off-season periods.

3. Do-it-yourself

Instead of hiring out or purchasing wedding items from professionals, there are many wedding items you can make yourself for far less money. Details such as wedding invitations, favors and even some of the wedding dress accessories, such as a veil, can be made at home. Craft stores offer not only the supplies and idea but also magazines and other publications that outline how to do it yourself.

Imagine the possibilities. Think of all the wedding details you can make yourself. Other do-it-yourself ideas are table centerpieces for the reception, flower arrangements for the ceremony, ribbons or bows for the pews if your wedding is to be held in a church. There are a number of things you can do yourself to help save money on your wedding and still have the beautiful niceties you've always dreamed about.

You can even ask family and friends if they are able to help, which brings you to the #4 way to save money.

4. Ask people you know

Another potential way to save money on your wedding is to ask around and see if you don’t already know someone who specializes in one or more of the wedding details, or perhaps you can get a referral from a family member, good friend, or even a client. For instance, do you know any photographers or someone who has a nifty way with video cameras? If so, you might just find someone who can help you out with this aspect of the wedding. Maybe a grandparent, aunt, cousin or good friend is an excellent baker and would be willing to help you design and create your dream wedding cake.

Bands are often expensive, but if you hire someone you know, or go with a DJ which typically costs less than a band, you can save money on reception music. Same thing with a florist. If you have a family member or friend who is either a great gardener or a professional florist, chances are they might love the chance to help you create your floral arrangements.

If you have any family or friends with talents, this would be a wonderful wedding gift to you and most people are often very eager to help out if they can.

5. Wedding dress

The wedding gown is one of the most extravagant costs associated with a wedding. While the dress is a considerable expense there are many ways to bring down the costs. If you are open to the idea of purchasing a used dress, you can check online websites such as eBay, Craigslist or other classified ads. Sometimes you can even find new dresses on these sites. You can start a family tradition and wear a family member's gown to not only bring down costs but add sentimental value to your special day. Clearance racks and consignment shops are another excellent way to save on wedding dresses.

Memorable times are what truly creates a great wedding. It is not about how much you spend, but the attention to detail and love that goes into planning. It is perfectly possible to create the wedding of your dreams without starting your marriage off in significant debt. These are only a few of the many ways you can save on your wedding, but they are some ideas that can get you off to a good financial start.

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