So tax season is here and if you’re anything like me as soon as those W2’s hit your ADP app or mailbox you logged right in to Turbo Tax or made an appointment with whomever prepares your taxes. While there is absolutely nothing wrong with that, I think many times we are just as quick to flush that money down the drain on luxury and or unneeded items, especially so in the african american and latino communities. So below I have compiled a short list of do’ & don’ts of tax money. No worries I wouldn’t put anything on this list I wouldn’t be able to follow myself!
DO SAVE !
Often times we are so caught up in the hype of having this lump sum of money that we don’t think practically for a rainy day or emergency. Many times we say that we don’t make enough to save, here is a perfect time to do so.
DON”T Splurge CARELESSLY!
So you claimed a few family members or your children…..cool, So now you’re feeling like rubber bands mami? It’s cool to treat yourself but if you’re attempting to learn conducive spending habits than ; how about making a deal with yourself? For instance you want that over-sized Louis V bag or seen a dope vintage Chanel you just had to have from Club Monaco? Well here’s a plan that will hold you accountable for your spending, if your bag will be $1,000 take $500 dollars of your money after bills, home and personal necessities, along with $500 from your tax money to make the purchase. Now this may take you 1, 2, 3, 4, or even 5 checks depending on your income vs outcome money ratio and the amount you choose to save each pay period. Saving for your purchase this way will help you to appreciate your purchase more as well as hep you put in perspective if you really want this item.
DO INVEST IN YOU !
Looking to start your own business but have no investors? Why not be your own first investor? No one wants to invest in a business and/or project that the founder isn’t even willing to invest in.Not quite ready to venture out into the be your own boss thing? That’s fine, there are other ways to invest in you maybe it’s paying for a few courses to better your knowledge for a position at work. Maybe you’re not working or starting a new job and need a few business pieces, now would be a good time to take a piece of that return and invest in a few key staple pieces. Investing in you also means investing in your children if you have any. Be your child’s first investor (build family wealth), don’t just hand it over either, hold them accountable, make them right a business plan according to their level and have them present it to you. Critique them and according to their business plan and budget invest in them accordingly!
DON’T ANNOUNCE IT!
I know you would think this is a no brainer, but some how tons of people usually announce they got their tax money back and wonder why out of the blue their whole family now is asking to borrow money. I’m not saying don’t help those in need, just be careful aside from people who borrow and never pay back, robbing is at an all time high! with social media being one of the leading causes!
Do ENJOY IT !
You have worked hard all year and get chunks of money taken out so enjoy ya coins honey!